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 237 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on OCSL.
1. Profitability
1.1 Basic Checks
In the past year OCSL was profitable.
OCSL had a positive operating cash flow in the past year.
In the past 5 years OCSL has always 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
Looking at the Return On Assets, with a value of 0.29%, OCSL is doing worse than 73.00% of the companies in the same industry.
OCSL has a worse Return On Equity (0.61%) than 70.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.97%, OCSL belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OCSL is in line with the industry average of 7.83%.
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 worse Profit Margin (2.55%) than 69.20% of its industry peers.
OCSL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 83.85%, OCSL belongs to the best of the industry, outperforming 99.58% of the companies in the same industry.
OCSL's Operating Margin has improved in the last couple of years.
OCSL has a better Gross Margin (79.61%) than 83.97% of its industry peers.
In the last couple of years the Gross Margin of OCSL has grown nicely.
| 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
OCSL has more shares outstanding than it did 1 year ago.
OCSL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OCSL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that OCSL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.47, OCSL is not doing good in the industry: 62.45% of the companies in the same industry are doing better.
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.
With a decent Debt to FCF ratio value of 6.00, OCSL is doing good in the industry, outperforming 64.56% of the companies in the same industry.
OCSL has a Debt/Equity ratio of 0.98. This is a neutral value indicating OCSL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, OCSL is in line with its industry, outperforming 50.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.47 |
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.
The Current ratio of OCSL (1.04) is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that OCSL should not have too much problems paying its short term obligations.
The Quick ratio of OCSL (1.04) 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 -16.96% 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 small growth in Revenue. In the last year, the Revenue has grown by 0.62%.
The Revenue has been growing by 20.91% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-16.96%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-32.73%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-20.74%
3.2 Future
OCSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.95% yearly.
OCSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.39% yearly.
EPS Next Y-14.6%
EPS Next 2Y-12.34%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue Next Year-16.25%
Revenue Next 2Y-9.52%
Revenue Next 3Y-6.39%
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
With a Price/Earnings ratio of 7.02, the valuation of OCSL can be described as very cheap.
OCSL's Price/Earnings ratio is rather cheap when compared to the industry. OCSL is cheaper than 89.87% of the companies in the same industry.
OCSL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
OCSL is valuated cheaply with a Price/Forward Earnings ratio of 7.82.
Based on the Price/Forward Earnings ratio, OCSL is valued cheaper than 87.34% of the companies in the same industry.
OCSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
83.54% 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 | 4.89 | ||
| 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 -8.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-12.34%
EPS Next 3Y-8.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.22%, OCSL is a good candidate for dividend investing.
OCSL's Dividend Yield is rather good when compared to the industry average which is at 8.18. OCSL pays more dividend than 88.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OCSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
5.2 History
The dividend of OCSL is nicely growing with an annual growth rate of 14.84%!
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-12.34%
EPS Next 3Y-8.95%
13.4
+0.11 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change-0.21%
Ins Owners0.31%
Ins Owner Change0.27%
Market Cap1.18B
Analysts50.91
Price Target14.15 (5.6%)
Short Float %1.54%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
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)0%
PT rev (3m)-8.72%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-5.52%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.58%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-6.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 7.82 | ||
| P/S | 3.34 | ||
| P/FCF | 4.89 | ||
| P/OCF | 4.89 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.91
EY14.25%
EPS(NY)1.71
Fwd EY12.79%
FCF(TTM)2.74
FCFY20.46%
OCF(TTM)2.74
OCFY20.46%
SpS4.02
BVpS16.75
TBVpS16.75
PEG (NY)N/A
PEG (5Y)0.2
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 | 0.47 |
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)-16.96%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-32.73%
EPS Next Y-14.6%
EPS Next 2Y-12.34%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.62%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-20.74%
Revenue Next Year-16.25%
Revenue Next 2Y-9.52%
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%