SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSLX - US83012A1097 - Common Stock
21.66 USD
-0.06 (-0.28%)
21.66 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TSLX. TSLX was compared to 235 industry peers in the Capital Markets industry. While TSLX has a great profitability rating, there are some minor concerns on its financial health. 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
TSLX has a Return On Assets of 5.46%. This is in the better half of the industry: TSLX outperforms 72.77% of its industry peers.
TSLX's Return On Equity of 11.83% is fine compared to the rest of the industry. TSLX outperforms 68.94% of its industry peers.
TSLX has a Return On Invested Capital of 5.52%. This is in the better half of the industry: TSLX outperforms 71.06% 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 7.13%.
The last Return On Invested Capital (5.52%) for TSLX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.83% | ||
| ROIC | 5.52% |
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
Looking at the Profit Margin, with a value of 41.24%, TSLX belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
In the last couple of years the Profit Margin of TSLX has declined.
TSLX's Operating Margin of 52.36% is amongst the best of the industry. TSLX outperforms 91.49% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 55.27%, TSLX is doing good in the industry, outperforming 68.51% 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 | 52.36% | ||
| PM (TTM) | 41.24% | ||
| GM | 55.27% |
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.
The number of shares outstanding for TSLX has been increased compared to 5 years ago.
The debt/assets ratio for TSLX has been reduced compared to a year ago.
2.2 Solvency
TSLX has an Altman-Z score of 1.09. This is a bad value and indicates that TSLX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TSLX (1.09) is comparable to the rest of the industry.
TSLX has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as TSLX would need 6.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.18, TSLX is doing good in the industry, outperforming 67.66% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TSLX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.13, TSLX perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.09 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 5.05 indicates that TSLX has no problem at all paying its short term obligations.
The Current ratio of TSLX (5.05) is better than 85.53% of its industry peers.
A Quick Ratio of 5.05 indicates that TSLX has no problem at all paying its short term obligations.
TSLX has a Quick ratio of 5.05. This is amongst the best in the industry. TSLX outperforms 85.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.05 | ||
| Quick Ratio | 5.05 |
3. Growth
3.1 Past
TSLX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.80%.
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 decreased by -2.90% 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)-3.8%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-10.17%
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-8.2%
3.2 Future
The Earnings Per Share is expected to decrease by -5.87% on average over the next years.
The Revenue is expected to decrease by -4.18% on average over the next years.
EPS Next Y-5.82%
EPS Next 2Y-6.68%
EPS Next 3Y-5.87%
EPS Next 5YN/A
Revenue Next Year-6.06%
Revenue Next 2Y-5.35%
Revenue Next 3Y-4.18%
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
A Price/Earnings ratio of 9.50 indicates a reasonable valuation of TSLX.
Compared to the rest of the industry, the Price/Earnings ratio of TSLX indicates a somewhat cheap valuation: TSLX is cheaper than 74.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TSLX to the average of the S&P500 Index (26.60), we can say TSLX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.54, the valuation of TSLX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TSLX is valued a bit cheaper than 69.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. TSLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TSLX is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.9 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TSLX has a very decent profitability rating, which may justify a higher PE ratio.
TSLX's earnings are expected to decrease with -5.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.38
EPS Next 2Y-6.68%
EPS Next 3Y-5.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.57%, TSLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, TSLX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
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
88.24% 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.
DP88.24%
EPS Next 2Y-6.68%
EPS Next 3Y-5.87%
21.66
-0.06 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner Change-2.26%
Ins Owners0.36%
Ins Owner Change3.02%
Market Cap2.05B
Revenue(TTM)464.51M
Net Income(TTM)191.55M
Analysts80
Price Target23.97 (10.66%)
Short Float %3.11%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP88.24%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.53%
Min EPS beat(2)-0.67%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)2.72%
Min EPS beat(4)-0.67%
Max EPS beat(4)5.19%
EPS beat(8)5
Avg EPS beat(8)1.38%
EPS beat(12)9
Avg EPS beat(12)2.63%
EPS beat(16)10
Avg EPS beat(16)1.56%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)1.78%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.54%
PT rev (1m)-0.96%
PT rev (3m)-2.89%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 10.54 | ||
| P/S | 4.41 | ||
| P/FCF | 6.9 | ||
| P/OCF | 6.9 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.28
EY10.53%
EPS(NY)2.06
Fwd EY9.49%
FCF(TTM)3.14
FCFY14.5%
OCF(TTM)3.14
OCFY14.5%
SpS4.92
BVpS17.14
TBVpS17.14
PEG (NY)N/A
PEG (5Y)2.38
Graham Number29.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.83% | ||
| ROCE | 6.98% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 5.65% | ||
| OM | 52.36% | ||
| PM (TTM) | 41.24% | ||
| GM | 55.27% | ||
| FCFM | 63.89% |
ROA(3y)5.22%
ROA(5y)6.31%
ROE(3y)11.5%
ROE(5y)13.29%
ROIC(3y)5.34%
ROIC(5y)5.16%
ROICexc(3y)5.38%
ROICexc(5y)5.2%
ROICexgc(3y)5.38%
ROICexgc(5y)5.2%
ROCE(3y)6.76%
ROCE(5y)6.53%
ROICexgc growth 3Y8.94%
ROICexgc 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-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.86 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 154.93% | ||
| Current Ratio | 5.05 | ||
| Quick Ratio | 5.05 | ||
| Altman-Z | 1.09 |
F-Score7
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)-3.8%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-10.17%
EPS Next Y-5.82%
EPS Next 2Y-6.68%
EPS Next 3Y-5.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%-8.2%
Revenue Next Year-6.06%
Revenue Next 2Y-5.35%
Revenue Next 3Y-4.18%
Revenue Next 5YN/A
EBIT growth 1Y0.53%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y410.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y410.42%
OCF growth 3YN/A
OCF growth 5YN/A
SIXTH STREET SPECIALTY LENDI / TSLX FAQ
Can you provide the ChartMill fundamental rating for SIXTH STREET SPECIALTY LENDI?
ChartMill assigns a fundamental rating of 5 / 10 to TSLX.
What is the valuation status for TSLX stock?
ChartMill assigns a valuation rating of 6 / 10 to SIXTH STREET SPECIALTY LENDI (TSLX). This can be considered as Fairly Valued.
What is the profitability of TSLX stock?
SIXTH STREET SPECIALTY LENDI (TSLX) has a profitability rating of 7 / 10.
What is the valuation of SIXTH STREET SPECIALTY LENDI based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SIXTH STREET SPECIALTY LENDI (TSLX) is 9.5 and the Price/Book (PB) ratio is 1.26.
What is the earnings growth outlook for SIXTH STREET SPECIALTY LENDI?
The Earnings per Share (EPS) of SIXTH STREET SPECIALTY LENDI (TSLX) is expected to decline by -5.82% in the next year.