OAKTREE SPECIALTY LENDING CO (OCSL) Stock Fundamental Analysis
NASDAQ:OCSL - Nasdaq - US67401P4054 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OCSL. OCSL was compared to 225 industry peers in the Capital Markets industry. While OCSL is still in line with the averages on profitability rating, there are concerns on its financial health. OCSL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OCSL was profitable.
In the past year OCSL had a positive cash flow from operations.
OCSL had positive earnings in each of the past 5 years.
In multiple years OCSL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 1.77%, OCSL perfoms like the industry average, outperforming 42.92% of the companies in the same industry.
OCSL's Return On Equity of 3.77% is on the low side compared to the rest of the industry. OCSL is outperformed by 67.12% of its industry peers.
With an excellent Return On Invested Capital value of 8.68%, OCSL belongs to the best of the industry, outperforming 82.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OCSL is in line with the industry average of 6.76%.
The 3 year average ROIC (7.27%) for OCSL is below the current ROIC(8.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 3.77% | ||
| ROIC | 8.68% |
ROA(3y)2.19%
ROA(5y)3.59%
ROE(3y)4.66%
ROE(5y)7.27%
ROIC(3y)7.27%
ROIC(5y)6.11%
1.3 Margins
With a Profit Margin value of 14.75%, OCSL perfoms like the industry average, outperforming 47.95% of the companies in the same industry.
OCSL's Profit Margin has declined in the last couple of years.
OCSL has a Operating Margin of 81.67%. This is amongst the best in the industry. OCSL outperforms 99.54% of its industry peers.
OCSL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.95%, OCSL belongs to the top of the industry, outperforming 83.11% of the companies in the same industry.
OCSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 81.67% | ||
| PM (TTM) | 14.75% | ||
| GM | 78.95% |
OM growth 3Y8.51%
OM growth 5Y3.22%
PM growth 3Y-48.84%
PM growth 5Y-29.23%
GM growth 3Y7.03%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
The number of shares outstanding for OCSL has been increased compared to 1 year ago.
OCSL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OCSL has a worse debt to assets ratio.
2.2 Solvency
OCSL has an Altman-Z score of 0.50. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
OCSL has a Altman-Z score of 0.50. This is in the lower half of the industry: OCSL underperforms 68.49% of its industry peers.
The Debt to FCF ratio of OCSL is 9.75, which is on the high side as it means it would take OCSL, 9.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OCSL (9.75) is comparable to the rest of the industry.
OCSL has a Debt/Equity ratio of 0.88. This is a neutral value indicating OCSL is somewhat dependend on debt financing.
OCSL has a Debt to Equity ratio of 0.88. This is comparable to the rest of the industry: OCSL outperforms 57.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 9.75 | ||
| Altman-Z | 0.5 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
OCSL has a Current Ratio of 0.58. This is a bad value and indicates that OCSL is not financially healthy enough and could expect problems in meeting its short term obligations.
OCSL has a Current ratio of 0.58. This is in the lower half of the industry: OCSL underperforms 73.06% of its industry peers.
OCSL has a Quick Ratio of 0.58. This is a bad value and indicates that OCSL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.58, OCSL is doing worse than 73.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for OCSL have decreased by -9.47% in the last year.
OCSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.40% yearly.
The Revenue has decreased by -6.97% in the past year.
Measured over the past years, OCSL shows a very strong growth in Revenue. The Revenue has been growing by 20.91% on average per year.
EPS 1Y (TTM)-9.47%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-11.57%
3.2 Future
Based on estimates for the next years, OCSL will show a decrease in Earnings Per Share. The EPS will decrease by -7.51% on average per year.
OCSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.31% yearly.
EPS Next Y-9.44%
EPS Next 2Y-6.98%
EPS Next 3Y-7.51%
EPS Next 5YN/A
Revenue Next Year-10.6%
Revenue Next 2Y-4.82%
Revenue Next 3Y-3.31%
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
OCSL is valuated cheaply with a Price/Earnings ratio of 7.29.
87.67% of the companies in the same industry are more expensive than OCSL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. OCSL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.31, the valuation of OCSL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OCSL is valued cheaper than 84.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, OCSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, OCSL is valued a bit cheaper than 76.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
OCSL has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as OCSL's earnings are expected to decrease with -7.51% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-6.98%
EPS Next 3Y-7.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.75%, OCSL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.98, OCSL pays a better dividend. On top of this OCSL pays more dividend than 83.11% of the companies listed in the same industry.
OCSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.75% |
5.2 History
The dividend of OCSL is nicely growing with an annual growth rate of 14.84%!
OCSL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OCSL pays out 317.96% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of OCSL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP317.96%
EPS Next 2Y-6.98%
EPS Next 3Y-7.51%
16.03
-0.05 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.41%
Inst Owner Change-76.67%
Ins Owners0.29%
Ins Owner Change0.01%
Market Cap1.32B
Analysts53.33
Price Target16.24 (1.31%)
Short Float %1%
Short Ratio0.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.75% |
Yearly Dividend2.22
Dividend Growth(5Y)14.84%
DP317.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.93%
Min EPS beat(2)-3.14%
Max EPS beat(2)-0.73%
EPS beat(4)0
Avg EPS beat(4)-3.2%
Min EPS beat(4)-4.83%
Max EPS beat(4)-0.73%
EPS beat(8)0
Avg EPS beat(8)-4%
EPS beat(12)2
Avg EPS beat(12)-3.2%
EPS beat(16)6
Avg EPS beat(16)0.07%
Revenue beat(2)0
Avg Revenue beat(2)-6.4%
Min Revenue beat(2)-8.6%
Max Revenue beat(2)-4.2%
Revenue beat(4)0
Avg Revenue beat(4)-6.77%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)-4.2%
Revenue beat(8)1
Avg Revenue beat(8)-6.52%
Revenue beat(12)4
Avg Revenue beat(12)-2.81%
Revenue beat(16)8
Avg Revenue beat(16)2.44%
PT rev (1m)-5.91%
PT rev (3m)-5.91%
EPS NQ rev (1m)-7.09%
EPS NQ rev (3m)-15.83%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-10.95%
Revenue NQ rev (1m)-7.86%
Revenue NQ rev (3m)-15.17%
Revenue NY rev (1m)-5.03%
Revenue NY rev (3m)-11.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 8.31 | ||
| P/S | 3.56 | ||
| P/FCF | 8.14 | ||
| P/OCF | 8.14 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY13.72%
EPS(NY)1.93
Fwd EY12.04%
FCF(TTM)1.97
FCFY12.28%
OCF(TTM)1.97
OCFY12.28%
SpS4.5
BVpS17.63
TBVpS17.63
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 3.77% | ||
| ROCE | 10.99% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 9.08% | ||
| OM | 81.67% | ||
| PM (TTM) | 14.75% | ||
| GM | 78.95% | ||
| FCFM | 43.72% |
ROA(3y)2.19%
ROA(5y)3.59%
ROE(3y)4.66%
ROE(5y)7.27%
ROIC(3y)7.27%
ROIC(5y)6.11%
ROICexc(3y)7.46%
ROICexc(5y)6.26%
ROICexgc(3y)7.47%
ROICexgc(5y)6.27%
ROCE(3y)9.2%
ROCE(5y)7.74%
ROICexcg growth 3Y28.81%
ROICexcg growth 5Y8.6%
ROICexc growth 3Y28.87%
ROICexc growth 5Y8.64%
OM growth 3Y8.51%
OM growth 5Y3.22%
PM growth 3Y-48.84%
PM growth 5Y-29.23%
GM growth 3Y7.03%
GM growth 5Y3.49%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 9.75 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 296.48% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.5 |
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)101.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.47%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-5.26%
EPS Next Y-9.44%
EPS Next 2Y-6.98%
EPS Next 3Y-7.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-11.57%
Revenue Next Year-10.6%
Revenue Next 2Y-4.82%
Revenue Next 3Y-3.31%
Revenue Next 5YN/A
EBIT growth 1Y-2.17%
EBIT growth 3Y32.55%
EBIT growth 5Y24.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y246.26%
FCF growth 3YN/A
FCF growth 5Y-38.44%
OCF growth 1Y246.26%
OCF growth 3YN/A
OCF growth 5Y-38.44%