OAKTREE SPECIALTY LENDING CO (OCSL) Stock Fundamental Analysis
NASDAQ:OCSL - Nasdaq - US67401P4054 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OCSL. OCSL was compared to 232 industry peers in the Capital Markets industry. While OCSL is still in line with the averages on profitability rating, there are concerns on its financial health. OCSL has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
OCSL had positive earnings in the past year.
OCSL had a positive operating cash flow in the past year.
Each year in the past 5 years OCSL has been profitable.
The reported operating cash flow has been mixed in the past 5 years: OCSL reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.29%, OCSL is not doing good in the industry: 71.98% of the companies in the same industry are doing better.
The Return On Equity of OCSL (0.61%) is worse than 70.69% of its industry peers.
OCSL's Return On Invested Capital of 7.97% is amongst the best of the industry. OCSL outperforms 80.17% of its industry peers.
OCSL had an Average Return On Invested Capital over the past 3 years of 7.27%. This is in line with the industry average of 7.89%.
The 3 year average ROIC (7.27%) for OCSL is below the current ROIC(7.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.61% | ||
| ROIC | 7.97% |
ROA(3y)2.19%
ROA(5y)3.59%
ROE(3y)4.66%
ROE(5y)7.27%
ROIC(3y)7.27%
ROIC(5y)6.11%
1.3 Margins
OCSL has a Profit Margin of 2.55%. This is in the lower half of the industry: OCSL underperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of OCSL has declined.
With an excellent Operating Margin value of 83.85%, OCSL belongs to the best of the industry, outperforming 99.57% of the companies in the same industry.
In the last couple of years the Operating Margin of OCSL has grown nicely.
Looking at the Gross Margin, with a value of 79.61%, OCSL belongs to the top of the industry, outperforming 83.62% of the companies in the same industry.
OCSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.85% | ||
| PM (TTM) | 2.55% | ||
| GM | 79.61% |
OM growth 3Y8.51%
OM growth 5Y3.22%
PM growth 3Y-48.84%
PM growth 5Y-29.23%
GM growth 3Y7.03%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
The number of shares outstanding for OCSL has been increased compared to 1 year ago.
OCSL has more shares outstanding than it did 5 years ago.
OCSL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that OCSL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.51, OCSL is doing worse than 63.36% of the companies in the same industry.
OCSL has a debt to FCF ratio of 6.00. This is a neutral value as OCSL would need 6.00 years to pay back of all of its debts.
OCSL's Debt to FCF ratio of 6.00 is fine compared to the rest of the industry. OCSL outperforms 63.36% of its industry peers.
OCSL has a Debt/Equity ratio of 0.98. This is a neutral value indicating OCSL is somewhat dependend on debt financing.
OCSL has a Debt to Equity ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.51 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
OCSL has a Current Ratio of 1.04. This is a normal value and indicates that OCSL is financially healthy and should not expect problems in meeting its short term obligations.
OCSL has a Current ratio (1.04) which is comparable to the rest of the industry.
OCSL has a Quick Ratio of 1.04. This is a normal value and indicates that OCSL is financially healthy and should not expect problems in meeting its short term obligations.
OCSL has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for OCSL have decreased strongly by -11.81% in the last year.
Measured over the past years, OCSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.40% on average per year.
OCSL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.60%.
OCSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.91% yearly.
EPS 1Y (TTM)-11.81%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-19.64%
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-17.51%
3.2 Future
The Earnings Per Share is expected to decrease by -8.95% on average over the next years.
The Revenue is expected to decrease by -6.39% on average over the next years.
EPS Next Y-14.1%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue Next Year-15.88%
Revenue Next 2Y-9.01%
Revenue Next 3Y-6.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OCSL is valuated cheaply with a Price/Earnings ratio of 6.81.
Based on the Price/Earnings ratio, OCSL is valued cheaply inside the industry as 88.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, OCSL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of OCSL can be described as reasonable.
Based on the Price/Forward Earnings ratio, OCSL is valued cheaply inside the industry as 80.60% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.30. OCSL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, OCSL is valued cheaper than 83.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of OCSL may justify a higher PE ratio.
A cheap valuation may be justified as OCSL's earnings are expected to decrease with -8.95% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
5. Dividend
5.1 Amount
OCSL has a Yearly Dividend Yield of 12.97%, which is a nice return.
Compared to an average industry Dividend Yield of 8.15, OCSL pays a better dividend. On top of this OCSL pays more dividend than 83.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, OCSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.97% |
5.2 History
On average, the dividend of OCSL grows each year by 14.84%, which is quite nice.
OCSL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OCSL pays out 1860.60% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of OCSL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP1860.6%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
NASDAQ:OCSL (6/4/2025, 10:31:09 AM)
14.235
-0.27 (-1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.41%
Inst Owner Change-2.17%
Ins Owners0.29%
Ins Owner Change0.25%
Market Cap1.25B
Analysts53.33
Price Target14.79 (3.9%)
Short Float %1.27%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.97% |
Yearly Dividend2.22
Dividend Growth(5Y)14.84%
DP1860.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.94%
Min EPS beat(2)-9.15%
Max EPS beat(2)-0.73%
EPS beat(4)0
Avg EPS beat(4)-4.28%
Min EPS beat(4)-9.15%
Max EPS beat(4)-0.73%
EPS beat(8)0
Avg EPS beat(8)-4.85%
EPS beat(12)1
Avg EPS beat(12)-4.28%
EPS beat(16)5
Avg EPS beat(16)-0.51%
Revenue beat(2)0
Avg Revenue beat(2)-9.47%
Min Revenue beat(2)-10.33%
Max Revenue beat(2)-8.6%
Revenue beat(4)0
Avg Revenue beat(4)-7.36%
Min Revenue beat(4)-10.33%
Max Revenue beat(4)-4.2%
Revenue beat(8)0
Avg Revenue beat(8)-8.62%
Revenue beat(12)3
Avg Revenue beat(12)-4.31%
Revenue beat(16)7
Avg Revenue beat(16)1.55%
PT rev (1m)-7.45%
PT rev (3m)-8.9%
EPS NQ rev (1m)-5.64%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-4.37%
EPS NY rev (3m)-5.14%
Revenue NQ rev (1m)-7.88%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)-5.91%
Revenue NY rev (3m)-5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 8.41 | ||
| P/S | 3.54 | ||
| P/FCF | 5.19 | ||
| P/OCF | 5.19 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.09
EY14.68%
EPS(NY)1.69
Fwd EY11.89%
FCF(TTM)2.74
FCFY19.26%
OCF(TTM)2.74
OCFY19.26%
SpS4.02
BVpS16.75
TBVpS16.75
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.61% | ||
| ROCE | 10.08% | ||
| ROIC | 7.97% | ||
| ROICexc | 8.24% | ||
| ROICexgc | 8.24% | ||
| OM | 83.85% | ||
| PM (TTM) | 2.55% | ||
| GM | 79.61% | ||
| FCFM | 68.25% |
ROA(3y)2.19%
ROA(5y)3.59%
ROE(3y)4.66%
ROE(5y)7.27%
ROIC(3y)7.27%
ROIC(5y)6.11%
ROICexc(3y)7.46%
ROICexc(5y)6.26%
ROICexgc(3y)7.47%
ROICexgc(5y)6.27%
ROCE(3y)9.2%
ROCE(5y)7.74%
ROICexcg growth 3Y28.81%
ROICexcg growth 5Y8.6%
ROICexc growth 3Y28.87%
ROICexc growth 5Y8.64%
OM growth 3Y8.51%
OM growth 5Y3.22%
PM growth 3Y-48.84%
PM growth 5Y-29.23%
GM growth 3Y7.03%
GM growth 5Y3.49%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2676.83% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 0.51 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)101.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.81%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-19.64%
EPS Next Y-14.1%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-17.51%
Revenue Next Year-15.88%
Revenue Next 2Y-9.01%
Revenue Next 3Y-6.39%
Revenue Next 5YN/A
EBIT growth 1Y-3.85%
EBIT growth 3Y32.55%
EBIT growth 5Y24.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y821.87%
FCF growth 3YN/A
FCF growth 5Y-38.44%
OCF growth 1Y821.87%
OCF growth 3YN/A
OCF growth 5Y-38.44%