Capital SouthwestCSWC +0.48%57 ROA % is 5.12% as of Mar. 2026, which is 11% below its 10-year median of 5.75. GuruFocus rates CSWC with a GF Score™ of 57/100 and a GF Value™ of $25.51 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,639 Asset Management companies, Capital Southwest ranks better than 57.6% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Capital Southwest's annualizedNet Income for the quarter that ended in Mar. 2026 was $109.9 Mil.
Capital Southwest's average Total Assets over the quarter that ended in Mar. 2026 was $2,146.7 Mil. Therefore, Capital Southwest's annualized ROA % for the quarter that ended in Mar. 2026 was 5.12%.
The historical rank and industry rank for Capital Southwest's ROA % or its related term are showing as below:
CSWC'
s ROA % Range Over the Past 10 Years
Min: -3.93 Med: 5.75 Max: 10.58
Current: 5.6
During the past 13 years, Capital Southwest's highest ROA % was 10.58%. The lowest was -3.93%. And the median was 5.75%.
CSWC's ROA % is ranked better than 57.6% of 1639
companies
in the Asset Management industry
Industry Median: 3.95
vs CSWC: 5.60
Capital Southwest (NAS:CSWC) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Capital Southwest ROA % Related Terms
Capital Southwest ROA % Historical Data
* Premium members only.
The historical data trend for Capital Southwest's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's ROA % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Capital Southwest (CSWC) has a ROA % of 5.12% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Capital Southwest and its competitors. This is 11% below median its historical median of 5.75. According to the industry distribution chart, Capital Southwest ranks #695 out of 1639 companies in the Asset Management industry, placing it in the top 42.4%.
Is Capital Southwest's ROA % too high?
Capital Southwest's current ROA % of 5.12% is 11% below median its 10-year median of 5.75. The Asset Management industry median ROA % is 3.95. Capital Southwest's value of 5.12% is 29.6% above this industry median. Based on the distribution chart, Capital Southwest ranks #695 out of 1639 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's ROA % compare to BTT and HYT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #695 out of 1639 companies for ROA %. This puts Capital Southwest in the upper half of its industry. The industry median ROA % is 3.95. Capital Southwest's value of 5.12% is 29.6% above this benchmark. While the company's 10-year median is 5.75 vs. the industry median of 3.95, 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 ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 3.95, based on 1,639 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current ROA % of 5.12% is 29.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median ROA % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current ROA % is 5.12%, which is 11% below median its own 10-year median of 5.75. 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 Undervalued. The stock's GF Value™ is $25.51, compared to a current price of $23.05 — trading 9.6% below its estimated fair value. The current ROA % is 5.12%, which is 11% below median its 10-year median of 5.75 and 29.6% above the Asset Management industry median of 3.95. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Capital Southwest (CSWC), the current ROA % is 5.12% 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 $23.05 is trading 9.6% below its estimated GF Value™ of $25.51.
GuruFocus considers Capital Southwest to be Modestly Undervalued.
Key valuation signals for CSWC:
ROA %: 5.12% (11% below median its 10-year median of 5.75)
GF Value™: $25.51 vs. price of $23.05 (9.6% below fair value)
Industry Position: 29.6% above the Asset Management median (#695 of 1639)
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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