SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
USA - NYSE:TSLX - US83012A1097 - Common Stock
22.15 USD
-0.71 (-3.11%)
22.15 USD
0 (0%)
Overall TSLX gets a fundamental rating of 5 out of 10. We evaluated TSLX against 237 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
In the past year TSLX was profitable.
In the past year TSLX had a positive 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 5.49%. This is in the better half of the industry: TSLX outperforms 74.68% of its industry peers.
TSLX has a Return On Equity of 11.60%. This is in the better half of the industry: TSLX outperforms 64.14% of its industry peers.
TSLX's Return On Invested Capital of 5.89% is fine compared to the rest of the industry. TSLX outperforms 70.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSLX is below the industry average of 7.59%.
The last Return On Invested Capital (5.89%) for TSLX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.6% | ||
| ROIC | 5.89% |
ROA(3y)5.22%
ROA(5y)6.31%
ROE(3y)11.5%
ROE(5y)13.29%
ROIC(3y)5.34%
ROIC(5y)5.16%
1.3 Margins
TSLX has a Profit Margin of 39.55%. This is amongst the best in the industry. TSLX outperforms 82.28% of its industry peers.
In the last couple of years the Profit Margin of TSLX has declined.
Looking at the Operating Margin, with a value of 53.23%, TSLX belongs to the top of the industry, outperforming 88.61% of the companies in the same industry.
TSLX's Operating Margin has been stable in the last couple of years.
TSLX's Gross Margin of 56.00% is fine compared to the rest of the industry. TSLX outperforms 66.67% of its industry peers.
TSLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.23% | ||
| PM (TTM) | 39.55% | ||
| GM | 56% |
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.
The number of shares outstanding for TSLX has been increased compared to 5 years ago.
Compared to 1 year ago, TSLX has an improved debt to assets ratio.
2.2 Solvency
TSLX has an Altman-Z score of 1.15. This is a bad value and indicates that TSLX is not financially healthy and even has some risk of bankruptcy.
TSLX's Altman-Z score of 1.15 is in line compared to the rest of the industry. TSLX outperforms 57.38% of its industry peers.
The Debt to FCF ratio of TSLX is 7.26, which is on the high side as it means it would take TSLX, 7.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.26, TSLX perfoms like the industry average, outperforming 59.92% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that TSLX has dependencies on debt financing.
TSLX has a Debt to Equity ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.15 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 4.16 indicates that TSLX has no problem at all paying its short term obligations.
The Current ratio of TSLX (4.16) is better than 86.50% of its industry peers.
A Quick Ratio of 4.16 indicates that TSLX has no problem at all paying its short term obligations.
TSLX has a better Quick ratio (4.16) than 86.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 |
3. Growth
3.1 Past
The earnings per share for TSLX have decreased by -1.68% in the last year.
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 0.16% in the last year.
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)-1.68%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-3.45%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%1.12%
3.2 Future
Based on estimates for the next years, TSLX will show a decrease in Earnings Per Share. The EPS will decrease by -5.33% on average per year.
The Revenue is expected to decrease by -3.28% on average over the next years.
EPS Next Y-6.49%
EPS Next 2Y-5.81%
EPS Next 3Y-5.33%
EPS Next 5YN/A
Revenue Next Year-6.41%
Revenue Next 2Y-5.3%
Revenue Next 3Y-3.28%
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.
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
Based on the Price/Earnings ratio of 9.47, the valuation of TSLX can be described as reasonable.
Based on the Price/Earnings ratio, TSLX is valued a bit cheaper than the industry average as 74.26% of the companies are valued more expensively.
TSLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.79.
A Price/Forward Earnings ratio of 10.58 indicates a reasonable valuation of TSLX.
67.09% 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 23.21, TSLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TSLX is valued a bit cheaper than 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| 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 -5.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y-5.81%
EPS Next 3Y-5.33%
5. Dividend
5.1 Amount
TSLX has a Yearly Dividend Yield of 8.12%, which is a nice return.
TSLX's Dividend Yield is a higher than the industry average which is at 8.30.
TSLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.12% |
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
90.08% 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.
DP90.08%
EPS Next 2Y-5.81%
EPS Next 3Y-5.33%
22.15
-0.71 (-3.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners53.31%
Inst Owner Change-0.15%
Ins Owners0.35%
Ins Owner Change0%
Market Cap2.09B
Analysts82.35
Price Target24.68 (11.42%)
Short Float %3.25%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.12% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP90.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.17%
Min EPS beat(2)2.62%
Max EPS beat(2)3.73%
EPS beat(4)4
Avg EPS beat(4)3.17%
Min EPS beat(4)1.14%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.94%
EPS beat(12)9
Avg EPS beat(12)2.22%
EPS beat(16)11
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)3.51%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)9.01%
Revenue beat(4)2
Avg Revenue beat(4)1.98%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)9.01%
Revenue beat(8)3
Avg Revenue beat(8)0.94%
Revenue beat(12)7
Avg Revenue beat(12)1.64%
Revenue beat(16)9
Avg Revenue beat(16)1.15%
PT rev (1m)-1%
PT rev (3m)3.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 10.58 | ||
| P/S | 4.4 | ||
| P/FCF | 8.77 | ||
| P/OCF | 8.77 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.34
EY10.56%
EPS(NY)2.09
Fwd EY9.45%
FCF(TTM)2.52
FCFY11.4%
OCF(TTM)2.52
OCFY11.4%
SpS5.03
BVpS17.17
TBVpS17.17
PEG (NY)N/A
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 11.6% | ||
| ROCE | 7.45% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 5.96% | ||
| OM | 53.23% | ||
| PM (TTM) | 39.55% | ||
| GM | 56% | ||
| FCFM | 50.16% |
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-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 7.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.81% | ||
| Current Ratio | 4.16 | ||
| Quick Ratio | 4.16 | ||
| Altman-Z | 1.15 |
F-Score6
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)-1.68%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-3.45%
EPS Next Y-6.49%
EPS Next 2Y-5.81%
EPS Next 3Y-5.33%
EPS Next 5YN/A
Revenue 1Y (TTM)0.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%1.12%
Revenue Next Year-6.41%
Revenue Next 2Y-5.3%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A
EBIT growth 1Y11.65%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y163.2%
OCF growth 3YN/A
OCF growth 5YN/A