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. There are concerns on the financial health of OCSL while its profitability can be described as average. OCSL is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OCSL had positive earnings in the past year.
In the past year OCSL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.29%, OCSL is doing worse than 72.84% of the companies in the same industry.
The Return On Equity of OCSL (0.61%) is worse than 71.55% of its industry peers.
The Return On Invested Capital of OCSL (7.97%) is better than 80.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OCSL is in line with the industry average of 7.85%.
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's Profit Margin of 2.55% is on the low side compared to the rest of the industry. OCSL is outperformed by 69.83% of its industry peers.
In the last couple of years the Profit Margin of OCSL has declined.
Looking at the Operating Margin, with a value of 83.85%, OCSL belongs to the top of the industry, outperforming 99.57% of the companies in the same industry.
OCSL's Operating Margin has improved in the last couple of years.
OCSL has a Gross Margin of 79.61%. This is amongst the best in the industry. OCSL outperforms 83.62% of its industry peers.
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.
Compared to 5 years ago, OCSL has more shares outstanding
OCSL has a worse debt/assets ratio than last year.
2.2 Solvency
OCSL has an Altman-Z score of 0.48. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
OCSL's Altman-Z score of 0.48 is on the low side compared to the rest of the industry. OCSL is outperformed by 63.79% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.00, OCSL is in the better half of the industry, outperforming 63.79% 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.
OCSL has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.48 |
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.
With a Quick ratio value of 1.04, OCSL perfoms like the industry average, outperforming 48.28% of the companies in the same 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.
OCSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.40% yearly.
The Revenue for OCSL has decreased by -10.60% in the past year. This is quite bad
The Revenue has been growing by 20.91% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, OCSL will show a decrease in Earnings Per Share. The EPS will decrease by -8.95% on average per year.
Based on estimates for the next years, OCSL will show a decrease in Revenue. The Revenue will decrease by -6.39% on average per year.
EPS Next Y-15.02%
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
The Price/Earnings ratio is 6.50, which indicates a rather cheap valuation of OCSL.
Based on the Price/Earnings ratio, OCSL is valued cheaper than 89.22% of the companies in the same industry.
OCSL is valuated cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.03, the valuation of OCSL can be described as reasonable.
Based on the Price/Forward Earnings ratio, OCSL is valued cheaper than 86.21% 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 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
83.62% 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 | 4.96 | ||
| 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)0.18
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.78%, OCSL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.07, OCSL pays a better dividend. On top of this OCSL pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, OCSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.78% |
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
1860.60% of the earnings are spent on dividend by OCSL. 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 (6/24/2025, 3:12:52 PM)
13.59
+0.03 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change-2.17%
Ins Owners0.31%
Ins Owner Change0.25%
Market Cap1.20B
Analysts73.85
Price Target14.59 (7.36%)
Short Float %1.48%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.78% |
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)-1.38%
PT rev (3m)-10.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.64%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-6.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.03 | ||
| P/S | 3.38 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.96 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.09
EY15.38%
EPS(NY)1.69
Fwd EY12.46%
FCF(TTM)2.74
FCFY20.18%
OCF(TTM)2.74
OCFY20.18%
SpS4.02
BVpS16.75
TBVpS16.75
PEG (NY)N/A
PEG (5Y)0.18
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 | 0.48 |
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-15.02%
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%