SIXTH STREET SPECIALTY LENDI (TSLX)
US83012A1097 - Common Stock
Overall TSLX gets a fundamental rating of 4 out of 10. We evaluated TSLX against 212 industry peers in the Capital Markets industry. While TSLX is still in line with the averages on profitability rating, there are concerns on its financial health. TSLX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TSLX had positive earnings in the past year.
In the past year TSLX has reported a negative 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 Return On Assets of 6.27%. This is in the better half of the industry: TSLX outperforms 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 13.69%, TSLX is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
TSLX has a Return On Invested Capital of 4.81%. This is in the better half of the industry: TSLX outperforms 61.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSLX is significantly below the industry average of 10.69%.
The 3 year average ROIC (4.66%) for TSLX is below the current ROIC(4.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 13.69% | ||
| ROIC | 4.81% |
ROA(3y)6.25%
ROA(5y)6.63%
ROE(3y)13.17%
ROE(5y)13.73%
ROIC(3y)4.66%
ROIC(5y)4.78%
1.3 Margins
TSLX has a better Profit Margin (47.15%) than 84.29% of its industry peers.
In the last couple of years the Profit Margin of TSLX has grown nicely.
TSLX has a Operating Margin of 45.43%. This is in the better half of the industry: TSLX outperforms 77.14% of its industry peers.
TSLX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 48.11%, TSLX perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
TSLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.43% | ||
| PM (TTM) | 47.15% | ||
| GM | 48.11% |
OM growth 3Y-7.1%
OM growth 5Y-4.21%
PM growth 3Y-8.41%
PM growth 5Y2.21%
GM growth 3Y-7.74%
GM growth 5Y-4.64%
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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, TSLX perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that TSLX has dependencies on debt financing.
TSLX has a Debt to Equity ratio of 1.14. This is comparable to the rest of the industry: TSLX outperforms 42.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSLX has a Current Ratio of 2.79. 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 2.79, TSLX is in the better half of the industry, outperforming 75.24% of the companies in the same industry.
TSLX has a Quick Ratio of 2.79. This indicates that TSLX is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.79, TSLX is doing good in the industry, outperforming 75.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
TSLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.90%, which is quite good.
TSLX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.05% yearly.
The Revenue has grown by 35.73% in the past year. This is a very strong growth!
TSLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.84% yearly.
EPS 1Y (TTM)14.9%
EPS 3Y2.21%
EPS 5Y1.05%
EPS growth Q2Q5.45%
Revenue 1Y (TTM)35.73%
Revenue growth 3Y17.51%
Revenue growth 5Y10.84%
Revenue growth Q2Q22.05%
3.2 Future
TSLX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.23% yearly.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y1.23%
EPS Next 2Y-1.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.27%
Revenue Next 2Y2.63%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 8.88, which indicates a very decent valuation of TSLX.
74.76% of the companies in the same industry are more expensive than TSLX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSLX to the average of the S&P500 Index (28.15), we can say TSLX is valued rather cheaply.
The Price/Forward Earnings ratio is 9.22, which indicates a very decent valuation of TSLX.
70.48% of the companies in the same industry are more expensive than TSLX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, TSLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TSLX may justify a higher PE ratio.
PEG (NY)7.23
PEG (5Y)8.47
EPS Next 2Y-1.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TSLX has a Yearly Dividend Yield of 8.61%, which is a nice return.
TSLX's Dividend Yield is a higher than the industry average which is at 7.06.
Compared to an average S&P500 Dividend Yield of 2.34, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
5.2 History
The dividend of TSLX has a limited annual growth rate of 3.90%.
TSLX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TSLX decreased recently.
Dividend Growth(5Y)3.9%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TSLX pays out 74.46% of its income as dividend. 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.
DP74.46%
EPS Next 2Y-1.23%
EPS Next 3YN/A
SIXTH STREET SPECIALTY LENDI
NYSE:TSLX (5/17/2024, 7:04:00 PM)
After market: 21.16 -0.07 (-0.33%)21.23
-0.07 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.23
PEG (5Y)8.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 13.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.43% | ||
| PM (TTM) | 47.15% | ||
| GM | 48.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.9%
EPS 3Y2.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.73%
Revenue growth 3Y17.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y