SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
NYSE:TSLX - US83012A1097 - Common Stock
24.66 USD
+0.27 (+1.11%)
24.66 USD
0 (0%)
TSLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. TSLX has only an average score on both its financial health and profitability. TSLX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TSLX was profitable.
In the past year TSLX had a positive cash flow from operations.
TSLX had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: TSLX reported negative operating cash flow in multiple years.
1.2 Ratios
TSLX has a better Return On Assets (5.49%) than 75.21% of its industry peers.
Looking at the Return On Equity, with a value of 11.60%, TSLX is in the better half of the industry, outperforming 65.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.89%, TSLX is in the better half of the industry, outperforming 70.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSLX is below the industry average of 7.61%.
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 better Profit Margin (39.55%) than 82.77% of its industry peers.
TSLX's Profit Margin has declined in the last couple of years.
The Operating Margin of TSLX (53.23%) is better than 88.24% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
TSLX's Gross Margin of 56.00% is fine compared to the rest of the industry. TSLX outperforms 65.97% of its industry peers.
In the last couple of years the Gross Margin of TSLX has remained more or less at the same level.
| 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
Compared to 1 year ago, TSLX has more shares outstanding
The number of shares outstanding for TSLX has been increased compared to 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 1.22, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.22, TSLX is in line with its industry, outperforming 57.56% of the companies in the same industry.
TSLX has a debt to FCF ratio of 7.26. This is a slightly negative value and a sign of low solvency as TSLX would need 7.26 years to pay back of all of its debts.
TSLX has a Debt to FCF ratio (7.26) which 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 has a Debt to Equity ratio of 1.07. This is comparable to the rest of the industry: TSLX outperforms 48.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.22 |
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.
TSLX has a Current ratio of 4.16. This is amongst the best in the industry. TSLX outperforms 85.71% of its industry peers.
TSLX has a Quick Ratio of 4.16. This indicates that TSLX is financially healthy and has no problem in meeting its short term obligations.
TSLX has a better Quick ratio (4.16) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 |
3. Growth
3.1 Past
The earnings per share for TSLX have decreased by -1.68% in the last year.
TSLX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.00% yearly.
Looking at the last year, TSLX shows a small growth in Revenue. The Revenue has grown by 0.16% in the last year.
TSLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.92% yearly.
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 -5.33% on average per year.
Based on estimates for the next years, TSLX will show a decrease in Revenue. The Revenue will decrease by -3.28% on average per year.
EPS Next Y-6.43%
EPS Next 2Y-6.06%
EPS Next 3Y-5.33%
EPS Next 5YN/A
Revenue Next Year-6.69%
Revenue Next 2Y-5.85%
Revenue Next 3Y-3.28%
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
A Price/Earnings ratio of 10.54 indicates a reasonable valuation of TSLX.
71.43% of the companies in the same industry are more expensive than TSLX, based on the Price/Earnings ratio.
TSLX is valuated cheaply when we compare the Price/Earnings ratio to 27.44, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.84, the valuation of TSLX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TSLX is valued a bit cheaper than 64.71% of the companies in the same industry.
TSLX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TSLX is valued a bit cheaper than 73.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TSLX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TSLX's earnings are expected to decrease with -5.33% in the coming years.
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y-6.06%
EPS Next 3Y-5.33%
5. Dividend
5.1 Amount
TSLX has a Yearly Dividend Yield of 7.49%, which is a nice return.
TSLX's Dividend Yield is a higher than the industry average which is at 8.21.
TSLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
The dividend of TSLX has a limited annual growth rate of 4.56%.
TSLX has been paying a dividend for at least 10 years, so it has 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.
The Dividend Rate of TSLX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP90.08%
EPS Next 2Y-6.06%
EPS Next 3Y-5.33%
24.66
+0.27 (+1.11%)
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 Cap2.32B
Analysts82.35
Price Target24.93 (1.09%)
Short Float %2.83%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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)0.46%
PT rev (3m)5.77%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0.89%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 11.84 | ||
| P/S | 4.9 | ||
| P/FCF | 9.77 | ||
| P/OCF | 9.77 | ||
| P/B | 1.44 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.34
EY9.49%
EPS(NY)2.08
Fwd EY8.44%
FCF(TTM)2.52
FCFY10.24%
OCF(TTM)2.52
OCFY10.24%
SpS5.03
BVpS17.17
TBVpS17.17
PEG (NY)N/A
PEG (5Y)2.64
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 | 1.22 |
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-6.43%
EPS Next 2Y-6.06%
EPS Next 3Y-5.33%
EPS Next 5YN/A
Revenue 1Y (TTM)0.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%1.12%
Revenue Next Year-6.69%
Revenue Next 2Y-5.85%
Revenue Next 3Y-3.28%
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