OAKTREE SPECIALTY LENDING CO (OCSL) Fundamental Analysis & Valuation
NASDAQ:OCSL • US67401P4054
Current stock price
This OCSL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. OCSL Profitability Analysis
1.1 Basic Checks
- OCSL had positive earnings in the past year.
- In the past year OCSL had a positive cash flow from operations.
- Each year in the past 5 years OCSL has been profitable.
- OCSL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- OCSL has a Return On Assets of 1.04%. This is in the lower half of the industry: OCSL underperforms 62.34% of its industry peers.
- OCSL has a Return On Equity of 2.25%. This is in the lower half of the industry: OCSL underperforms 64.02% of its industry peers.
- OCSL has a Return On Invested Capital of 6.67%. This is in the better half of the industry: OCSL outperforms 74.48% of its industry peers.
- OCSL had an Average Return On Invested Capital over the past 3 years of 7.64%. This is in line with the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.25% | ||
| ROIC | 6.67% |
1.3 Margins
- Looking at the Profit Margin, with a value of 10.58%, OCSL is in line with its industry, outperforming 43.10% of the companies in the same industry.
- In the last couple of years the Profit Margin of OCSL has declined.
- OCSL has a Operating Margin of 84.39%. This is amongst the best in the industry. OCSL outperforms 99.58% of its industry peers.
- In the last couple of years the Operating Margin of OCSL has grown nicely.
- OCSL has a Gross Margin of 81.78%. This is amongst the best in the industry. OCSL outperforms 86.61% of its industry peers.
- In the last couple of years the Gross Margin of OCSL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 84.39% | ||
| PM (TTM) | 10.58% | ||
| GM | 81.78% |
2. OCSL Health Analysis
2.1 Basic Checks
- Compared to 1 year ago, OCSL has more shares outstanding
- OCSL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, OCSL has an improved debt to assets ratio.
2.2 Solvency
- OCSL has an Altman-Z score of 0.33. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
- OCSL's Altman-Z score of 0.33 is on the low side compared to the rest of the industry. OCSL is outperformed by 64.44% of its industry peers.
- OCSL has a debt to FCF ratio of 1668.42. This is a negative value and a sign of low solvency as OCSL would need 1668.42 years to pay back of all of its debts.
- OCSL's Debt to FCF ratio of 1668.42 is in line compared to the rest of the industry. OCSL outperforms 48.54% of its industry peers.
- OCSL has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.12, OCSL perfoms like the industry average, outperforming 44.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1668.42 | ||
| Altman-Z | 0.33 |
2.3 Liquidity
- A Current Ratio of 2.24 indicates that OCSL has no problem at all paying its short term obligations.
- OCSL's Current ratio of 2.24 is fine compared to the rest of the industry. OCSL outperforms 77.82% of its industry peers.
- OCSL has a Quick Ratio of 2.24. This indicates that OCSL is financially healthy and has no problem in meeting its short term obligations.
- OCSL has a Quick ratio of 2.24. This is in the better half of the industry: OCSL outperforms 77.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 |
3. OCSL Growth Analysis
3.1 Past
- OCSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.91%.
- Measured over the past 5 years, OCSL shows a small growth in Earnings Per Share. The EPS has been growing by 2.84% on average per year.
- The Revenue for OCSL has decreased by -17.57% in the past year. This is quite bad
- Measured over the past years, OCSL shows a quite strong growth in Revenue. The Revenue has been growing by 17.23% on average per year.
3.2 Future
- OCSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.29% yearly.
- The Revenue is expected to decrease by -2.02% on average over the next years.
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. OCSL Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 6.99, which indicates a rather cheap valuation of OCSL.
- OCSL's Price/Earnings ratio is rather cheap when compared to the industry. OCSL is cheaper than 80.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.23, OCSL is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.60 indicates a rather cheap valuation of OCSL.
- 82.43% of the companies in the same industry are more expensive than OCSL, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.42. OCSL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
- The rest of the industry has a similar Price/Free Cash Flow ratio as OCSL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1039.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- OCSL has a very decent profitability rating, which may justify a higher PE ratio.
- OCSL's earnings are expected to decrease with -6.29% in the coming years. This may justify a cheaper valuation.
5. OCSL Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 14.22%, OCSL is a good candidate for dividend investing.
- OCSL's Dividend Yield is rather good when compared to the industry average which is at 6.72. OCSL pays more dividend than 84.94% of the companies in the same industry.
- OCSL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
5.2 History
- The dividend of OCSL is nicely growing with an annual growth rate of 9.02%!
- OCSL has been paying a dividend for at least 10 years, so it has a reliable track record.
5.3 Sustainability
- OCSL pays out 428.99% of its income as dividend. This is not a sustainable payout ratio.
- OCSL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
OCSL Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:OCSL (3/23/2026, 3:44:43 PM)
11.39
+0.32 (+2.89%)
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.6 | ||
| P/S | 3.29 | ||
| P/FCF | 1039.74 | ||
| P/OCF | 1039.74 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | N/A |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 2.25% | ||
| ROCE | 8.44% | ||
| ROIC | 6.67% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 6.87% | ||
| OM | 84.39% | ||
| PM (TTM) | 10.58% | ||
| GM | 81.78% | ||
| FCFM | 0.32% |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1668.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2.99% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 0.33 |
OAKTREE SPECIALTY LENDING CO / OCSL Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for OAKTREE SPECIALTY LENDING CO?
ChartMill assigns a fundamental rating of 5 / 10 to OCSL.
What is the valuation status for OCSL stock?
ChartMill assigns a valuation rating of 6 / 10 to OAKTREE SPECIALTY LENDING CO (OCSL). This can be considered as Fairly Valued.
Can you provide the profitability details for OAKTREE SPECIALTY LENDING CO?
OAKTREE SPECIALTY LENDING CO (OCSL) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for OCSL stock?
The Price/Earnings (PE) ratio for OAKTREE SPECIALTY LENDING CO (OCSL) is 6.99 and the Price/Book (PB) ratio is 0.7.
Is the dividend of OAKTREE SPECIALTY LENDING CO sustainable?
The dividend rating of OAKTREE SPECIALTY LENDING CO (OCSL) is 6 / 10 and the dividend payout ratio is 428.99%.