OAKTREE SPECIALTY LENDING CO (OCSL)
US67401P4054 - Common Stock
We assign a fundamental rating of 5 out of 10 to OCSL. OCSL was compared to 212 industry peers in the Capital Markets industry. There are concerns on the financial health of OCSL while its profitability can be described as average. OCSL has a correct valuation and a medium growth rate.
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.
OCSL had positive earnings in each of the past 5 years.
In multiple years OCSL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 3.51%, OCSL perfoms like the industry average, outperforming 49.04% of the companies in the same industry.
OCSL has a Return On Equity of 7.59%. This is in the lower half of the industry: OCSL underperforms 60.58% of its industry peers.
OCSL has a Return On Invested Capital of 7.72%. This is in the better half of the industry: OCSL outperforms 77.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OCSL is below the industry average of 10.67%.
The 3 year average ROIC (5.79%) for OCSL is below the current ROIC(7.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 7.59% | ||
| ROIC | 7.72% |
ROA(3y)4.58%
ROA(5y)4.93%
ROE(3y)9.39%
ROE(5y)9.2%
ROIC(3y)5.79%
ROIC(5y)5.56%
1.3 Margins
OCSL has a Profit Margin of 28.82%. This is in the better half of the industry: OCSL outperforms 64.42% of its industry peers.
OCSL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 77.66%, OCSL belongs to the best of the industry, outperforming 99.04% of the companies in the same industry.
OCSL's Operating Margin has improved in the last couple of years.
OCSL's Gross Margin of 77.41% is fine compared to the rest of the industry. OCSL outperforms 78.85% of its industry peers.
OCSL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.66% | ||
| PM (TTM) | 28.82% | ||
| GM | 77.41% |
OM growth 3Y3.92%
OM growth 5Y2.24%
PM growth 3Y4.13%
PM growth 5Y-1.73%
GM growth 3Y2.47%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
OCSL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OCSL has been increased compared to 5 years ago.
Compared to 1 year ago, OCSL has a worse debt to assets ratio.
2.2 Solvency
OCSL has an Altman-Z score of 0.68. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, OCSL is doing worse than 62.02% of the companies in the same industry.
The Debt to FCF ratio of OCSL is 4.78, which is a neutral value as it means it would take OCSL, 4.78 years of fcf income to pay off all of its debts.
OCSL has a Debt to FCF ratio of 4.78. This is in the better half of the industry: OCSL outperforms 64.90% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that OCSL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.07, OCSL is in line with its industry, outperforming 45.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 0.68 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.67 indicates that OCSL should not have too much problems paying its short term obligations.
The Current ratio of OCSL (1.67) is better than 63.94% of its industry peers.
OCSL has a Quick Ratio of 1.67. This is a normal value and indicates that OCSL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.67, OCSL is doing good in the industry, outperforming 64.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
OCSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.45%, which is quite good.
OCSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.86% yearly.
Looking at the last year, OCSL shows a very strong growth in Revenue. The Revenue has grown by 43.87%.
OCSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.29% yearly.
EPS 1Y (TTM)10.45%
EPS 3Y69.19%
EPS 5Y41.86%
EPS growth Q2Q-6.56%
Revenue 1Y (TTM)43.87%
Revenue growth 3Y38.39%
Revenue growth 5Y22.29%
Revenue growth Q2Q23.72%
3.2 Future
The Earnings Per Share is expected to decrease by -3.22% on average over the next years.
Based on estimates for the next years, OCSL will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y-4.73%
EPS Next 2Y-3.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.79%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 7.94, which indicates a rather cheap valuation of OCSL.
Based on the Price/Earnings ratio, OCSL is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OCSL to the average of the S&P500 Index (28.28), we can say OCSL is valued rather cheaply.
OCSL is valuated reasonably with a Price/Forward Earnings ratio of 8.34.
OCSL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OCSL is cheaper than 77.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, OCSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
90.87% of the companies in the same industry are more expensive than OCSL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
OCSL has a very decent profitability rating, which may justify a higher PE ratio.
OCSL's earnings are expected to decrease with -3.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-3.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OCSL has a Yearly Dividend Yield of 11.40%, which is a nice return.
OCSL's Dividend Yield is rather good when compared to the industry average which is at 7.27. OCSL pays more dividend than 81.73% of the companies in the same industry.
OCSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.4% |
5.2 History
On average, the dividend of OCSL grows each year by 17.34%, which is quite nice.
OCSL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
148.39% of the earnings are spent on dividend by OCSL. This is not a sustainable payout ratio.
OCSL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP148.39%
EPS Next 2Y-3.22%
EPS Next 3YN/A
OAKTREE SPECIALTY LENDING CO
NASDAQ:OCSL (5/3/2024, 7:10:01 PM)
After market: 19.1027 -0.2 (-1.02%)19.3
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 8.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 7.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 77.66% | ||
| PM (TTM) | 28.82% | ||
| GM | 77.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.45%
EPS 3Y69.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.87%
Revenue growth 3Y38.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y