OAKTREE SPECIALTY LENDING CO (OCSL) Stock Fundamental Analysis
NASDAQ:OCSL - Nasdaq - US67401P4054 - Common Stock - Currency: USD
OCSL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 231 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.
In the past 5 years OCSL has always been profitable.
In multiple years OCSL reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.29%, OCSL is doing worse than 73.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.61%, OCSL is doing worse than 72.73% of the companies in the same industry.
OCSL's Return On Invested Capital of 7.97% is amongst the best of the industry. OCSL outperforms 81.39% 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 7.13%.
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
Looking at the Profit Margin, with a value of 2.55%, OCSL is doing worse than 71.00% of the companies in the same industry.
In the last couple of years the Profit Margin of OCSL has declined.
OCSL's Operating Margin of 83.85% is amongst the best of the industry. OCSL outperforms 99.57% of its industry peers.
In the last couple of years the Operating Margin of OCSL has grown nicely.
The Gross Margin of OCSL (79.61%) is better than 83.12% 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
Compared to 1 year ago, OCSL has more shares outstanding
Compared to 5 years ago, OCSL has more shares outstanding
The debt/assets ratio for OCSL is higher compared to a year ago.
2.2 Solvency
OCSL has an Altman-Z score of 0.45. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
OCSL has a Altman-Z score of 0.45. This is in the lower half of the industry: OCSL underperforms 65.37% of its industry peers.
The Debt to FCF ratio of OCSL is 6.00, which is a neutral value as it means it would take OCSL, 6.00 years of fcf income to pay off 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 61.47% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that OCSL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, OCSL perfoms like the industry average, outperforming 56.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.04 indicates that OCSL should not have too much problems paying its short term obligations.
OCSL's Current ratio of 1.04 is in line compared to the rest of the industry. OCSL outperforms 46.32% of its industry peers.
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's Quick ratio of 1.04 is in line compared to the rest of the industry. OCSL outperforms 49.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
OCSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.81%.
The Earnings Per Share has been growing by 35.40% on average over the past years. This is a very strong growth
Looking at the last year, OCSL shows a very negative growth in Revenue. The Revenue has decreased by -10.60% in the last year.
Measured over the past years, OCSL shows a very strong growth in Revenue. The Revenue has been growing by 20.91% on average per year.
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%-17.5%
3.2 Future
OCSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.51% yearly.
The Revenue is expected to decrease by -3.31% on average over the next years.
EPS Next Y-10.18%
EPS Next 2Y-7.38%
EPS Next 3Y-7.51%
EPS Next 5YN/A
Revenue Next Year-10.6%
Revenue Next 2Y-4.82%
Revenue Next 3Y-3.31%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
OCSL is valuated cheaply with a Price/Earnings ratio of 6.60.
OCSL's Price/Earnings ratio is rather cheap when compared to the industry. OCSL is cheaper than 87.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. OCSL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of OCSL can be described as very cheap.
Based on the Price/Forward Earnings ratio, OCSL is valued cheaper than 88.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, OCSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
OCSL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OCSL is cheaper than 85.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| 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 -7.51% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-7.38%
EPS Next 3Y-7.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.24%, OCSL is a good candidate for dividend investing.
OCSL's Dividend Yield is rather good when compared to the industry average which is at 8.50. OCSL pays more dividend than 85.28% of the companies in the same industry.
OCSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.24% |
5.2 History
On average, the dividend of OCSL grows each year by 14.84%, which is quite nice.
OCSL has paid a dividend for at least 10 years, which is 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-7.38%
EPS Next 3Y-7.51%
13.79
+0.13 (+0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.41%
Inst Owner Change-3.28%
Ins Owners0.29%
Ins Owner Change0.09%
Market Cap1.13B
Analysts53.33
Price Target14.79 (7.25%)
Short Float %1.52%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.24% |
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)-1.57%
PT rev (3m)-2.59%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.21 | ||
| P/S | 3.21 | ||
| P/FCF | 4.7 | ||
| P/OCF | 4.7 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.09
EY15.16%
EPS(NY)1.91
Fwd EY13.87%
FCF(TTM)2.94
FCFY21.29%
OCF(TTM)2.94
OCFY21.29%
SpS4.3
BVpS17.93
TBVpS17.93
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 | 0.45 |
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-10.18%
EPS Next 2Y-7.38%
EPS Next 3Y-7.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-17.5%
Revenue Next Year-10.6%
Revenue Next 2Y-4.82%
Revenue Next 3Y-3.31%
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%