Capital SouthwestFRA:SFW +0.68%58 ROE % is 11.02% as of Mar. 2026, which is 1% above its 10-year median of 10.87. GuruFocus rates FRA:SFW with a GF Score™ of 58/100 and a GF Value™ of €22.16 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,608 Asset Management companies, Capital Southwest ranks better than 68.28% on this metric.
The historical rank and industry rank for Capital Southwest's ROE % or its related term are showing as below:
FRA:SFW'
s ROE % 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 ROE % was 16.72%. The lowest was -7.47%. And the median was 10.87%.
FRA:SFW's ROE % is ranked better than 68.28% of 1608
companies
in the Asset Management industry
Industry Median: 6.52
vs FRA:SFW: 11.88
Capital Southwest (FRA:SFW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Capital Southwest ROE % Related Terms
Capital Southwest ROE % Historical Data
* Premium members only.
The historical data trend for Capital Southwest's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's ROE % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Capital Southwest (FRA:SFW) has a ROE % of 11.02% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total 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 #510 out of 1608 companies in the Asset Management industry, placing it in the top 31.7%.
Is Capital Southwest's ROE % too high?
Capital Southwest's current ROE % of 11.02% is near median its 10-year median of 10.87. The Asset Management industry median ROE % is 6.52. Capital Southwest's value of 11.02% is 69% above this industry median. Based on the distribution chart, Capital Southwest ranks #510 out of 1608 companies in the Asset Management industry, which is above the industry midpoint. Overall, Capital Southwest has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's ROE % compare to BTT and QQQX?
According to the Asset Management industry distribution chart, Capital Southwest ranks #510 out of 1608 companies for ROE %. This puts Capital Southwest in the upper half of its industry. The industry median ROE % is 6.52. Capital Southwest's value of 11.02% is 69% above this benchmark. While the company's 10-year median is 10.87 vs. the industry median of 6.52, 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.52, based on 1,608 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current ROE % of 11.02% is 69% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median ROE % is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current ROE % is 11.02%, 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 (FRA:SFW) is currently considered Fairly Valued. The stock's GF Value™ is €22.16, compared to a current price of €20.70 — trading 6.6% below its estimated fair value. The current ROE % is 11.02%, which is near median its 10-year median of 10.87 and 69% above the Asset Management industry median of 6.52. Capital Southwest's overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Capital Southwest (FRA:SFW), the current ROE % is 11.02% 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 (FRA:SFW) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Southwest stock appears to be undervalued.
The current stock price of €20.70 is trading 6.6% below its estimated GF Value™ of €22.16.
GuruFocus considers Capital Southwest to be Fairly Valued.
Key valuation signals for FRA:SFW:
ROE %: 11.02% (near median its 10-year median of 10.87)
GF Value™: €22.16 vs. price of €20.70 (6.6% below fair value)
Industry Position: 69% above the Asset Management median (#510 of 1608)
No single metric tells the full story. See the FRA:SFW 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.
58GF Score
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