Capital SouthwestCSWC +0.52%57 Net Margin % is 84.19% as of Mar. 2026, which is 22% above its 10-year median of 68.88. GuruFocus rates CSWC with a GF Score™ of 57/100 and a GF Value™ of $25.51 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,580 Asset Management companies, Capital Southwest ranks worse than 55.19% on this metric.
The historical rank and industry rank for Capital Southwest's Net Margin % or its related term are showing as below:
CSWC'
s Net Margin % Range Over the Past 10 Years
Min: 51.58 Med: 68.88 Max: 9470.76
Current: 74.66
CSWC's Net Margin % is ranked worse than 55.19% of 1580
companies
in the Asset Management industry
Industry Median: 84.895
vs CSWC: 74.66
Capital Southwest (NAS:CSWC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Capital Southwest Net Margin % Related Terms
Capital Southwest Net Margin % Historical Data
* Premium members only.
The historical data trend for Capital Southwest's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Capital Southwest's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Capital Southwest Net Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's Net Margin % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Capital Southwest (CSWC) has a Net Margin % of 84.19% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Capital Southwest and its competitors. This is 22% above median its historical median of 68.88. Over the past decade, Capital Southwest's Net Margin % has ranged from 51.58 to 9,470.76. According to the industry distribution chart, Capital Southwest ranks #872 out of 1580 companies in the Asset Management industry, placing it in the top 55.2%.
Is Capital Southwest's Net Margin % too high?
Capital Southwest's current Net Margin % of 84.19% is 22% above median its 10-year median of 68.88. Over the past 10 years, this metric has ranged from a low of 51.58 to a high of 9,470.76. The Asset Management industry median Net Margin % is 84.90. Capital Southwest's value of 84.19% is 0.8% below this industry median. Based on the distribution chart, Capital Southwest ranks #872 out of 1580 companies in the Asset Management industry, which is below the industry midpoint. Overall, Capital Southwest has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's Net Margin % compare to BTT and HYT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #872 out of 1580 companies for Net Margin %. This places Capital Southwest in the lower half of its industry. The industry median Net Margin % is 84.90. Capital Southwest's value of 84.19% is 0.8% below this benchmark. Historically, Capital Southwest's own Net Margin % has ranged from 51.58 to 9,470.76 over the past decade. While the company's 10-year median is 68.88 vs. the industry median of 84.90, Capital Southwest has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Asset Management company?
The median Net Margin % among Asset Management companies is 84.90, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current Net Margin % of 84.19% is 0.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median Net Margin % is 84.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current Net Margin % is 84.19%, which is 22% above median its own 10-year median of 68.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Southwest stock overvalued right now?
Based on GuruFocus' analysis, Capital Southwest (CSWC) is currently considered Fairly Valued. The stock's GF Value™ is $25.51, compared to a current price of $23.06 — trading 9.6% below its estimated fair value. The current Net Margin % is 84.19%, which is 22% above median its 10-year median of 68.88 and 0.8% below the Asset Management industry median of 84.90. Capital Southwest's overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Capital Southwest (CSWC), the current Net Margin % is 84.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Capital Southwest (CSWC) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Southwest stock appears to be undervalued.
The current stock price of $23.06 is trading 9.6% below its estimated GF Value™ of $25.51.
GuruFocus considers Capital Southwest to be Fairly Valued.
Key valuation signals for CSWC:
Net Margin %: 84.19% (22% above median its 10-year median of 68.88)
GF Value™: $25.51 vs. price of $23.06 (9.6% below fair value)
Industry Position: 0.8% below the Asset Management median (#872 of 1580)
No single metric tells the full story. See the CSWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Southwest Corp is a U.S.-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source of revenue comprises interest income and dividend income from investments made as well as management fees.
57GF Score
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