Is CAPITAL SOUTHWEST CORP (CSWC) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | Excluded — Asset Management | ✗ NOT HALAL | |||
| DJIM | Excluded — Asset Management | ✗ NOT HALAL | |||
| MSCI | Excluded — Asset Management | ✗ NOT HALAL | |||
| S&P | Excluded — Asset Management | ✗ NOT HALAL | |||
| FTSE | Excluded — Asset Management | ✗ NOT HALAL | |||
Financial Highlights
Profitability
| Gross Margin | 100.0% | |
| Operating Margin | 85.7% | |
| Net Margin | 45.5% | |
| Return on Equity (ROE) | 11.3% | |
| Return on Assets (ROA) | 6.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$217M |
| Free Cash Flow | -$219M |
| Total Debt | $956M |
| Debt-to-Equity | 108.2 |
| Current Ratio | 37.6 |
| Total Assets | $1.9B |
Price & Trading
| Last Close | $21.82 |
| 50-Day MA | $22.64 |
| 200-Day MA | $22.11 |
| Avg Volume | 633K |
| Beta | 0.8 |
|
52-Week Range
$17.46
| |
About CAPITAL SOUTHWEST CORP (CSWC)
Capital Southwest Corporation is a business development company. The firm specializes in credit and private equity and venture capital investments in lower middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations. The investment structures are unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20 percent of total check and only makes non-control investments. The firm is industry agnostic, but it prefers to invest in industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production, with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States and North America. The firm seeks to make investments ranging from $5 million to $25 million in securities. Its typical financing size is between $5 million and $75 million, target hold size is between $5 million and $45 million, and the firm is willing to backstop up to $55 million with an active network of co-investors. It seeks to invest in firms with minimum EBITDA between $3 million and $25 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. It prefers to take a majority or minority stake. The firm has the flexibility to hold investments for very long periods in its portfolio companies. It may also invest through warrants. The firm prefers to take board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.
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Frequently Asked Questions
Is CAPITAL SOUTHWEST CORP (CSWC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), CAPITAL SOUTHWEST CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is CAPITAL SOUTHWEST CORP's debt ratio?
CAPITAL SOUTHWEST CORP's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.
What are CAPITAL SOUTHWEST CORP's key financial metrics?
CAPITAL SOUTHWEST CORP has a market capitalization of $1.3B, trailing P/E ratio of 11.9, and revenue of $109M. The company maintains a gross margin of 100.0% and a net margin of 45.5%. Return on equity stands at 11.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.