SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
NYSE:TSLX - New York Stock Exchange, Inc. - US83012A1097 - Common Stock - Currency: USD
Taking everything into account, TSLX scores 4 out of 10 in our fundamental rating. TSLX was compared to 230 industry peers in the Capital Markets industry. Both the profitability and the financial health of TSLX get a neutral evaluation. Nothing too spectacular is happening here. 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
In the past year TSLX was profitable.
In the past year TSLX has reported a negative cash flow from operations.
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 5.21% is fine compared to the rest of the industry. TSLX outperforms 67.39% of its industry peers.
TSLX's Return On Equity of 11.61% is fine compared to the rest of the industry. TSLX outperforms 62.17% of its industry peers.
TSLX has a better Return On Invested Capital (5.61%) than 72.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSLX is in line with the industry average of 7.10%.
The last Return On Invested Capital (5.61%) for TSLX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 11.61% | ||
| ROIC | 5.61% |
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's Profit Margin of 38.66% is fine compared to the rest of the industry. TSLX outperforms 79.57% of its industry peers.
TSLX's Profit Margin has declined in the last couple of years.
TSLX's Operating Margin of 52.28% is amongst the best of the industry. TSLX outperforms 89.57% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
TSLX has a better Gross Margin (54.87%) than 64.78% 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 | 52.28% | ||
| PM (TTM) | 38.66% | ||
| GM | 54.87% |
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.
TSLX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
TSLX has a Altman-Z score of 1.00. This is comparable to the rest of the industry: TSLX outperforms 53.91% of its industry peers.
TSLX has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.18, TSLX is in line with its industry, outperforming 41.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.23 indicates that TSLX has no problem at all paying its short term obligations.
TSLX has a better Current ratio (2.23) than 73.48% of its industry peers.
A Quick Ratio of 2.23 indicates that TSLX has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.23, TSLX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
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.
The Revenue has grown by 10.14% in the past year. This is quite good.
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)10.14%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-1.22%
3.2 Future
The Earnings Per Share is expected to decrease by -6.19% on average over the next years.
The Revenue is expected to decrease by -3.04% on average over the next years.
EPS Next Y-6.25%
EPS Next 2Y-4.11%
EPS Next 3Y-6.19%
EPS Next 5YN/A
Revenue Next Year-3.18%
Revenue Next 2Y-1.29%
Revenue Next 3Y-3.04%
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 8.84.
Compared to the rest of the industry, the Price/Earnings ratio of TSLX indicates a somewhat cheap valuation: TSLX is cheaper than 75.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, TSLX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.62, the valuation of TSLX can be described as reasonable.
68.26% of the companies in the same industry are more expensive than TSLX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TSLX to the average of the S&P500 Index (20.86), we can say TSLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 9.62 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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 -6.19% in the coming years.
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-4.11%
EPS Next 3Y-6.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.95%, TSLX is a good candidate for dividend investing.
TSLX's Dividend Yield is a higher than the industry average which is at 8.35.
Compared to an average S&P500 Dividend Yield of 2.44, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.95% |
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.
TSLX has decreased its dividend recently.
Dividend Growth(5Y)4.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
90.43% 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.
DP90.43%
EPS Next 2Y-4.11%
EPS Next 3Y-6.19%
20.87
+0.31 (+1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners50.81%
Inst Owner Change0.99%
Ins Owners0.32%
Ins Owner Change0.33%
Market Cap1.96B
Analysts81.18
Price Target23.97 (14.85%)
Short Float %1.51%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.95% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP90.43%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.16%
Min EPS beat(2)1.14%
Max EPS beat(2)5.19%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-3.21%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.93%
EPS beat(12)7
Avg EPS beat(12)0.11%
EPS beat(16)10
Avg EPS beat(16)1.35%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.92%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.35%
PT rev (1m)-0.3%
PT rev (3m)5.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 9.62 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.36
EY11.31%
EPS(NY)2.17
Fwd EY10.4%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)-0.48
OCFYN/A
SpS5.14
BVpS17.11
TBVpS17.11
PEG (NY)N/A
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 11.61% | ||
| ROCE | 7.1% | ||
| ROIC | 5.61% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 5.65% | ||
| OM | 52.28% | ||
| PM (TTM) | 38.66% | ||
| GM | 54.87% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 1 |
F-Score4
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-6.25%
EPS Next 2Y-4.11%
EPS Next 3Y-6.19%
EPS Next 5YN/A
Revenue 1Y (TTM)10.14%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-1.22%
Revenue Next Year-3.18%
Revenue Next 2Y-1.29%
Revenue Next 3Y-3.04%
Revenue Next 5YN/A
EBIT growth 1Y26.85%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.79%
OCF growth 3YN/A
OCF growth 5YN/A