Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Capital Southwest's 3-Year RORE % for the quarter that ended in Mar. 2026 was 6.40%.
The industry rank for Capital Southwest's 3-Year RORE % or its related term are showing as below:
CSWC's 3-Year RORE % is ranked worse than 54.11% of 1534
companies
in the Asset Management industry
Industry Median: 11.99
vs CSWC: 6.40
Capital Southwest (NAS:CSWC) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Capital Southwest 3-Year RORE % Related Terms
Capital Southwest 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Capital Southwest's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Capital Southwest (CSWC) has a 3-Year RORE % of 6.40 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Capital Southwest and its competitors. According to the industry distribution chart, Capital Southwest ranks #830 out of 1534 companies in the Asset Management industry, placing it in the top 54.1%.
Is Capital Southwest's 3-Year RORE % too high?
Capital Southwest's current 3-Year RORE % is 6.40. The Asset Management industry median 3-Year RORE % is 11.99. Capital Southwest's value of 6.40 is 46.6% below this industry median. Based on the distribution chart, Capital Southwest ranks #830 out of 1534 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 3-Year RORE % compare to BTT and HYT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #830 out of 1534 companies for 3-Year RORE %. This places Capital Southwest in the lower half of its industry. The industry median 3-Year RORE % is 11.99. Capital Southwest's value of 6.40 is 46.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Asset Management company?
The median 3-Year RORE % among Asset Management companies is 11.99, based on 1,534 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current 3-Year RORE % of 6.40 is 46.6% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median 3-Year RORE % is 11.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current 3-Year RORE % is 6.40. 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 3-Year RORE % is 6.40 and 46.6% below the Asset Management industry median of 11.99. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Capital Southwest (CSWC), the current 3-Year RORE % is 6.40 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:
3-Year RORE %: 6.40
GF Value™: $25.55 vs. price of $23.14 (9.4% below fair value)
Industry Position: 46.6% below the Asset Management median (#830 of 1534)
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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