Capital SouthwestCSWC -0.60%57 Return-on-Tangible-Equity is 10.96% as of Mar. 2026, which is 1% above its 10-year median of 10.87. GuruFocus rates CSWC with a GF Score™ of 57/100 and a GF Value™ of $25.55 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,591 Asset Management companies, Capital Southwest ranks better than 64.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Capital Southwest's annualized net income for the quarter that ended in Mar. 2026 was $109.9 Mil. Capital Southwest's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,003.3 Mil. Therefore, Capital Southwest's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.96%.
The historical rank and industry rank for Capital Southwest's Return-on-Tangible-Equity or its related term are showing as below:
CSWC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.47 Med: 10.87 Max: 16.72
Current: 11.88
During the past 13 years, Capital Southwest's highest Return-on-Tangible-Equity was 16.72%. The lowest was -7.47%. And the median was 10.87%.
CSWC's Return-on-Tangible-Equity is ranked better than 64.68% of 1591
companies
in the Asset Management industry
Industry Median: 7.05
vs CSWC: 11.88
Capital Southwest (NAS:CSWC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Capital Southwest Return-on-Tangible-Equity Related Terms
Capital Southwest Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Capital Southwest's Return-on-Tangible-Equity 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 BTT, HYT, NFJ: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Capital Southwest's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Capital Southwest's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.96% mean?
Capital Southwest (CSWC) has a Return-on-Tangible-Equity of 10.96% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Capital Southwest and its competitors. This is near median its historical median of 10.87. According to the industry distribution chart, Capital Southwest ranks #562 out of 1591 companies in the Asset Management industry, placing it in the top 35.3%.
Is Capital Southwest's Return-on-Tangible-Equity too high?
Capital Southwest's current Return-on-Tangible-Equity of 10.96% is near median its 10-year median of 10.87. The Asset Management industry median Return-on-Tangible-Equity is 7.05. Capital Southwest's value of 10.96% is 55.5% above this industry median. Based on the distribution chart, Capital Southwest ranks #562 out of 1591 companies in the Asset Management industry, which is above 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 Return-on-Tangible-Equity compare to BTT and HYT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #562 out of 1591 companies for Return-on-Tangible-Equity. This puts Capital Southwest in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.05. Capital Southwest's value of 10.96% is 55.5% above this benchmark. While the company's 10-year median is 10.87 vs. the industry median of 7.05, Capital Southwest has consistently been above 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 Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.05, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current Return-on-Tangible-Equity of 10.96% is 55.5% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current Return-on-Tangible-Equity is 10.96%, which is near median its own 10-year median of 10.87. 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 $25.55, compared to a current price of $23.14 — trading 9.4% below its estimated fair value. The current Return-on-Tangible-Equity is 10.96%, which is near median its 10-year median of 10.87 and 55.5% above the Asset Management industry median of 7.05. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Capital Southwest (CSWC), the current Return-on-Tangible-Equity is 10.96% 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 $23.14 is trading 9.4% below its estimated GF Value™ of $25.55.
GuruFocus considers Capital Southwest to be Fairly Valued.
Key valuation signals for CSWC:
Return-on-Tangible-Equity: 10.96% (near median its 10-year median of 10.87)
GF Value™: $25.55 vs. price of $23.14 (9.4% below fair value)
Industry Position: 55.5% above the Asset Management median (#562 of 1591)
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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