SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
NYSE:TSLX - New York Stock Exchange, Inc. - US83012A1097 - Common Stock - Currency: USD
TSLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. TSLX has an average financial health and profitability rating. TSLX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TSLX had positive earnings in the past year.
TSLX had a positive operating cash flow in the past year.
TSLX had positive earnings in each of the past 5 years.
In multiple years TSLX reported negative operating cash flow during the last 5 years.
1.2 Ratios
TSLX's Return On Assets of 5.49% is fine compared to the rest of the industry. TSLX outperforms 74.26% of its industry peers.
TSLX has a Return On Equity of 11.60%. This is in the better half of the industry: TSLX outperforms 64.56% of its industry peers.
TSLX's Return On Invested Capital of 5.89% is fine compared to the rest of the industry. TSLX outperforms 68.35% of its industry peers.
TSLX had an Average Return On Invested Capital over the past 3 years of 5.34%. This is below the industry average of 7.69%.
The 3 year average ROIC (5.34%) for TSLX is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.6% | ||
| ROIC | 5.89% |
ROA(3y)5.22%
ROA(5y)6.31%
ROE(3y)11.5%
ROE(5y)13.29%
ROIC(3y)5.34%
ROIC(5y)5.16%
1.3 Margins
TSLX has a Profit Margin of 39.55%. This is amongst the best in the industry. TSLX outperforms 83.12% of its industry peers.
In the last couple of years the Profit Margin of TSLX has declined.
TSLX has a better Operating Margin (53.23%) than 88.61% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
TSLX has a better Gross Margin (56.00%) than 65.82% of its industry peers.
TSLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.23% | ||
| PM (TTM) | 39.55% | ||
| GM | 56% |
OM growth 3Y1.97%
OM growth 5Y0.68%
PM growth 3Y-20.18%
PM growth 5Y-8.86%
GM growth 3Y0.51%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
TSLX has more shares outstanding than it did 1 year ago.
TSLX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSLX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
TSLX has a Altman-Z score (1.21) which is in line with its industry peers.
The Debt to FCF ratio of TSLX is 7.26, which is on the high side as it means it would take TSLX, 7.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TSLX (7.26) is comparable to the rest of the industry.
TSLX has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
TSLX's Debt to Equity ratio of 1.07 is in line compared to the rest of the industry. TSLX outperforms 48.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.21 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 4.16 indicates that TSLX has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.16, TSLX belongs to the best of the industry, outperforming 84.39% of the companies in the same industry.
A Quick Ratio of 4.16 indicates that TSLX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.16, TSLX belongs to the best of the industry, outperforming 84.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 |
3. Growth
3.1 Past
TSLX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.68%.
TSLX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.00% yearly.
The Revenue has been growing slightly by 0.16% in the past year.
Measured over the past years, TSLX shows a quite strong growth in Revenue. The Revenue has been growing by 13.92% on average per year.
EPS 1Y (TTM)-1.68%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-3.45%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%1.12%
3.2 Future
Based on estimates for the next years, TSLX will show a decrease in Earnings Per Share. The EPS will decrease by -4.90% on average per year.
TSLX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.38% yearly.
EPS Next Y-7.25%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
EPS Next 5YN/A
Revenue Next Year-6.92%
Revenue Next 2Y-5.28%
Revenue Next 3Y-5.38%
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 10.37, which indicates a very decent valuation of TSLX.
70.46% of the companies in the same industry are more expensive than TSLX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSLX to the average of the S&P500 Index (26.86), we can say TSLX is valued rather cheaply.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of TSLX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSLX indicates a somewhat cheap valuation: TSLX is cheaper than 65.40% of the companies listed in the same industry.
TSLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TSLX is valued a bit cheaper than the industry average as 73.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of TSLX may justify a higher PE ratio.
A cheap valuation may be justified as TSLX's earnings are expected to decrease with -4.90% in the coming years.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.60%, TSLX is a good candidate for dividend investing.
TSLX's Dividend Yield is a higher than the industry average which is at 7.61.
TSLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
5.2 History
The dividend of TSLX has a limited annual growth rate of 4.56%.
TSLX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TSLX pays out 90.08% of its income as dividend. This is not a sustainable payout ratio.
TSLX's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP90.08%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
24.26
+0.05 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners52.47%
Inst Owner Change-0.15%
Ins Owners0.35%
Ins Owner Change0%
Market Cap2.28B
Analysts82.35
Price Target24.82 (2.31%)
Short Float %2.89%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP90.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.17%
Min EPS beat(2)2.62%
Max EPS beat(2)3.73%
EPS beat(4)4
Avg EPS beat(4)3.17%
Min EPS beat(4)1.14%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.94%
EPS beat(12)9
Avg EPS beat(12)2.22%
EPS beat(16)11
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)3.51%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)9.01%
Revenue beat(4)2
Avg Revenue beat(4)1.98%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)9.01%
Revenue beat(8)3
Avg Revenue beat(8)0.94%
Revenue beat(12)7
Avg Revenue beat(12)1.64%
Revenue beat(16)9
Avg Revenue beat(16)1.15%
PT rev (1m)4.04%
PT rev (3m)5.29%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-5.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.6 | ||
| P/S | 4.81 | ||
| P/FCF | 9.58 | ||
| P/OCF | 9.58 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.34
EY9.65%
EPS(NY)2.09
Fwd EY8.62%
FCF(TTM)2.53
FCFY10.44%
OCF(TTM)2.53
OCFY10.44%
SpS5.05
BVpS17.22
TBVpS17.22
PEG (NY)N/A
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.6% | ||
| ROCE | 7.45% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 5.96% | ||
| OM | 53.23% | ||
| PM (TTM) | 39.55% | ||
| GM | 56% | ||
| FCFM | 50.16% |
ROA(3y)5.22%
ROA(5y)6.31%
ROE(3y)11.5%
ROE(5y)13.29%
ROIC(3y)5.34%
ROIC(5y)5.16%
ROICexc(3y)5.38%
ROICexc(5y)5.2%
ROICexgc(3y)5.38%
ROICexgc(5y)5.2%
ROCE(3y)6.76%
ROCE(5y)6.53%
ROICexcg growth 3Y8.94%
ROICexcg growth 5Y4.59%
ROICexc growth 3Y8.94%
ROICexc growth 5Y4.59%
OM growth 3Y1.97%
OM growth 5Y0.68%
PM growth 3Y-20.18%
PM growth 5Y-8.86%
GM growth 3Y0.51%
GM growth 5Y-0.28%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.81% | ||
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 | ||
| Altman-Z | 1.21 |
F-Score6
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.68%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-3.45%
EPS Next Y-7.25%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
EPS Next 5YN/A
Revenue 1Y (TTM)0.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%1.12%
Revenue Next Year-6.92%
Revenue Next 2Y-5.28%
Revenue Next 3Y-5.38%
Revenue Next 5YN/A
EBIT growth 1Y11.65%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y163.2%
OCF growth 3YN/A
OCF growth 5YN/A