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 232 industry peers in the Capital Markets industry. TSLX has only an average score on both its financial health and profitability. TSLX is valued correctly, 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.
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
The Return On Assets of TSLX (5.03%) is better than 71.12% of its industry peers.
The Return On Equity of TSLX (10.99%) is better than 64.22% of its industry peers.
The Return On Invested Capital of TSLX (5.97%) is better than 68.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSLX is below the industry average of 7.85%.
The last Return On Invested Capital (5.97%) for TSLX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| 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 81.90% of the companies in the same industry.
TSLX's Profit Margin has declined in the last couple of years.
TSLX has a Operating Margin of 54.55%. This is amongst the best in the industry. TSLX outperforms 90.52% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
TSLX has a Gross Margin of 57.21%. This is in the better half of the industry: TSLX outperforms 66.38% of its industry peers.
TSLX's Gross Margin has been stable in the last couple of years.
| 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
Compared to 1 year ago, TSLX has more shares outstanding
TSLX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TSLX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
TSLX has a Altman-Z score (1.12) 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.
The Debt to FCF ratio of TSLX (10.85) is comparable to the rest of the industry.
TSLX has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.15, TSLX perfoms like the industry average, outperforming 40.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.85 | ||
| Altman-Z | 1.12 |
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.
With an excellent Current ratio value of 3.22, TSLX belongs to the best of the industry, outperforming 80.60% 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.
Looking at the Quick ratio, with a value of 3.22, TSLX belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 4.00% on average over the past years.
TSLX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.74%.
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)-1.26%
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
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.
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.
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
TSLX is valuated reasonably with a Price/Earnings ratio of 9.69.
Based on the Price/Earnings ratio, TSLX is valued a bit cheaper than the industry average as 71.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.65, TSLX is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.94, the valuation of TSLX can be described as very reasonable.
TSLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSLX is cheaper than 62.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, TSLX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
TSLX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSLX is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| 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)2.42
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
5. Dividend
5.1 Amount
TSLX has a Yearly Dividend Yield of 7.98%, which is a nice return.
Compared to an average industry Dividend Yield of 8.07, TSLX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
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
95.78% of the earnings are spent on dividend by TSLX. 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.
DP95.78%
EPS Next 2Y-5.87%
EPS Next 3Y-4.9%
22.87
-0.29 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner Change4.47%
Ins Owners0.33%
Ins Owner Change0%
Market Cap2.15B
Analysts82.35
Price Target23.86 (4.33%)
Short Float %4.08%
Short Ratio7.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
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)1.2%
PT rev (3m)-0.77%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 10.94 | ||
| P/S | 4.47 | ||
| P/FCF | 12.64 | ||
| P/OCF | 12.64 | ||
| P/B | 1.34 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.36
EY10.32%
EPS(NY)2.09
Fwd EY9.14%
FCF(TTM)1.81
FCFY7.91%
OCF(TTM)1.81
OCFY7.91%
SpS5.12
BVpS17.04
TBVpS17.04
PEG (NY)N/A
PEG (5Y)2.42
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 | 1.12 |
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