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Capital SouthwestCSWC +1.54%55 Pretax Margin % is 76.81% as of Jun. 2026, which is 5% above its 10-year median of 73.48. GuruFocus rates CSWC with a GF Score™ of 55/100 and a GF Value™ of $21.19 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 1,568 Asset Management companies, Capital Southwest ranks worse than 57.59% on this metric.
Capital Southwest (NAS:CSWC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Capital Southwest Pretax Margin % Related Terms
Capital Southwest Pretax Margin % Historical Data
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The historical data trend for Capital Southwest's Pretax 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.
CSWC vs QQQX, BTT, ECAT: Pretax Margin % Comparison
For the Asset Management subindustry, Capital Southwest's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's Pretax 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 Pretax Margin % of 76.81% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Capital Southwest and its competitors. This is near median its historical median of 73.48. Over the past decade, Capital Southwest's Pretax Margin % has ranged from 56.43 to 6,841.10. According to the industry distribution chart, Capital Southwest ranks #903 out of 1568 companies in the Asset Management industry, placing it in the top 57.6%.
Is Capital Southwest's Pretax Margin % too high?
Capital Southwest's current Pretax Margin % of 76.81% is near median its 10-year median of 73.48. Over the past 10 years, this metric has ranged from a low of 56.43 to a high of 6,841.10. The Asset Management industry median Pretax Margin % is 90.34. Capital Southwest's value of 76.81% is 15% below this industry median. Based on the distribution chart, Capital Southwest ranks #903 out of 1568 companies in the Asset Management industry, which is below the industry midpoint. Overall, Capital Southwest has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's Pretax Margin % compare to QQQX and BTT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #903 out of 1568 companies for Pretax Margin %. This places Capital Southwest in the lower half of its industry. The industry median Pretax Margin % is 90.34. Capital Southwest's value of 76.81% is 15% below this benchmark. Historically, Capital Southwest's own Pretax Margin % has ranged from 56.43 to 6,841.10 over the past decade. While the company's 10-year median is 73.48 vs. the industry median of 90.34, 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 Pretax Margin % for an Asset Management company?
The median Pretax Margin % among Asset Management companies is 90.34, based on 1,568 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current Pretax Margin % of 76.81% is 15% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median Pretax Margin % is 90.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current Pretax Margin % is 76.81%, which is near median its own 10-year median of 73.48. 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 Modestly Overvalued. The stock's GF Value™ is $21.19, compared to a current price of $25.13 — trading 18.6% above its estimated fair value. The current Pretax Margin % is 76.81%, which is near median its 10-year median of 73.48 and 15% below the Asset Management industry median of 90.34. Capital Southwest's overall GF Score™ is 55/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Capital Southwest (CSWC), the current Pretax Margin % is 76.81% as of Jun. 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 overvalued.
The current stock price of $25.13 is trading 18.6% above its estimated GF Value™ of $21.19.
GuruFocus considers Capital Southwest to be Modestly Overvalued.
Key valuation signals for CSWC:
Pretax Margin %: 76.81% (near median its 10-year median of 73.48)
GF Value™: $21.19 vs. price of $25.13 (18.6% above fair value)
Industry Position: 15% below the Asset Management median (#903 of 1568)
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.
55GF Score
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