SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
NYSE:TSLX - New York Stock Exchange, Inc. - US83012A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TSLX. TSLX was compared to 233 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TSLX had positive earnings in the past year.
In the past year TSLX had a positive cash flow from operations.
In the past 5 years TSLX has always been profitable.
In multiple years TSLX reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TSLX (5.03%) is better than 71.67% of its industry peers.
TSLX has a better Return On Equity (10.99%) than 64.81% of its industry peers.
With a decent Return On Invested Capital value of 5.97%, TSLX is doing good in the industry, outperforming 69.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSLX is below the industry average of 7.86%.
The 3 year average ROIC (5.34%) for TSLX is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 10.99% | ||
| ROIC | 5.97% |
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
With an excellent Profit Margin value of 36.58%, TSLX belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
TSLX's Profit Margin has declined in the last couple of years.
TSLX's Operating Margin of 54.55% is amongst the best of the industry. TSLX outperforms 90.56% of its industry peers.
In the last couple of years the Operating Margin of TSLX has remained more or less at the same level.
With a decent Gross Margin value of 57.21%, TSLX is doing good in the industry, outperforming 66.52% of the companies in the same industry.
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 | 54.55% | ||
| PM (TTM) | 36.58% | ||
| GM | 57.21% |
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
The number of shares outstanding for TSLX has been increased compared to 1 year ago.
Compared to 5 years ago, TSLX has more shares outstanding
The debt/assets ratio for TSLX has been reduced compared to a year ago.
2.2 Solvency
TSLX has an Altman-Z score of 1.19. This is a bad value and indicates that TSLX is not financially healthy and even has some risk of bankruptcy.
TSLX has a Altman-Z score (1.19) which is in line with its industry peers.
TSLX has a debt to FCF ratio of 10.85. This is a negative value and a sign of low solvency as TSLX would need 10.85 years to pay back of all of its debts.
TSLX's Debt to FCF ratio of 10.85 is in line compared to the rest of the industry. TSLX outperforms 52.36% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that TSLX has dependencies on debt financing.
TSLX has a Debt to Equity ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.85 | ||
| Altman-Z | 1.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSLX has a Current Ratio of 3.22. This indicates that TSLX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.22, TSLX belongs to the top of the industry, outperforming 80.26% of the companies in the same industry.
TSLX has a Quick Ratio of 3.22. This indicates that TSLX is financially healthy and has no problem in meeting its short term obligations.
TSLX has a better Quick ratio (3.22) than 80.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 3.22 |
3. Growth
3.1 Past
TSLX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.26%.
Measured over the past 5 years, TSLX shows a small growth in Earnings Per Share. The EPS has been growing by 4.00% on average per year.
Looking at the last year, TSLX shows a small growth in Revenue. The Revenue has grown by 4.74% in the last 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)-1.26%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%0%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-1.26%
3.2 Future
The Earnings Per Share is expected to decrease by -4.90% on average over the next years.
The Revenue is expected to decrease by -5.38% on average over the next years.
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
With a Price/Earnings ratio of 10.51, the valuation of TSLX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TSLX indicates a somewhat cheap valuation: TSLX is cheaper than 70.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, TSLX is valued rather cheaply.
TSLX is valuated reasonably with a Price/Forward Earnings ratio of 11.86.
63.52% of the companies in the same industry are more expensive than TSLX, based on the Price/Forward Earnings ratio.
TSLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
69.96% of the companies in the same industry are more expensive than TSLX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of TSLX may justify a higher PE ratio.
TSLX's earnings are expected to decrease with -4.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.58%, TSLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.76, TSLX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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
95.78% of the earnings are spent on dividend by TSLX. 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.
DP95.78%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
24.8
-0.3 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change0%
Market Cap2.33B
Analysts82.35
Price Target23.86 (-3.79%)
Short Float %3.01%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP95.78%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.9%
Min EPS beat(2)2.62%
Max EPS beat(2)5.19%
EPS beat(4)3
Avg EPS beat(4)1.79%
Min EPS beat(4)-1.81%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)2.18%
EPS beat(12)8
Avg EPS beat(12)0.64%
EPS beat(16)10
Avg EPS beat(16)1.22%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)0.49%
Revenue beat(12)6
Avg Revenue beat(12)0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)0%
PT rev (3m)-0.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-4.07%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 11.86 | ||
| P/S | 4.84 | ||
| P/FCF | 13.71 | ||
| P/OCF | 13.71 | ||
| P/B | 1.46 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.36
EY9.52%
EPS(NY)2.09
Fwd EY8.43%
FCF(TTM)1.81
FCFY7.29%
OCF(TTM)1.81
OCFY7.29%
SpS5.12
BVpS17.04
TBVpS17.04
PEG (NY)N/A
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 10.99% | ||
| ROCE | 7.56% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.05% | ||
| ROICexgc | 6.05% | ||
| OM | 54.55% | ||
| PM (TTM) | 36.58% | ||
| GM | 57.21% | ||
| FCFM | 35.33% |
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-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.85 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 96.57% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 3.22 | ||
| Altman-Z | 1.19 |
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.26%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%0%
EPS Next Y-7.25%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
EPS Next 5YN/A
Revenue 1Y (TTM)4.74%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-1.26%
Revenue Next Year-6.92%
Revenue Next 2Y-5.28%
Revenue Next 3Y-5.38%
Revenue Next 5YN/A
EBIT growth 1Y25.77%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y144.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y144.82%
OCF growth 3YN/A
OCF growth 5YN/A