OAKTREE SPECIALTY LENDING CO (OCSL) Stock Fundamental Analysis
USA - NASDAQ:OCSL - US67401P4054 - Common Stock
13.79 USD
-0.06 (-0.43%)
13.84 USD
+0.05 (+0.36%)
We assign a fundamental rating of 5 out of 10 to OCSL. OCSL was compared to 238 industry peers in the Capital Markets industry. Both the profitability and the financial health of OCSL get a neutral evaluation. Nothing too spectacular is happening here. OCSL is valued quite cheap, but it does not seem to be growing. This makes OCSL very considerable for value investing!
1. Profitability
1.1 Basic Checks
OCSL had positive earnings in the past year.
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
The Return On Assets of OCSL (1.56%) is comparable to the rest of the industry.
OCSL has a Return On Equity of 3.13%. This is in the lower half of the industry: OCSL underperforms 68.49% of its industry peers.
The Return On Invested Capital of OCSL (7.63%) is better than 80.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OCSL is in line with the industry average of 7.61%.
The 3 year average ROIC (7.27%) for OCSL is below the current ROIC(7.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.13% | ||
| ROIC | 7.63% |
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
The Profit Margin of OCSL (13.84%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OCSL has declined.
OCSL's Operating Margin of 85.05% is amongst the best of the industry. OCSL outperforms 99.16% 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 80.46%, OCSL belongs to the top of the industry, outperforming 84.45% of the companies in the same industry.
OCSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 85.05% | ||
| PM (TTM) | 13.84% | ||
| GM | 80.46% |
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
OCSL has more shares outstanding than it did 1 year ago.
OCSL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OCSL is higher compared to a year ago.
2.2 Solvency
OCSL has an Altman-Z score of 0.53. 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 0.53 is on the low side compared to the rest of the industry. OCSL is outperformed by 61.34% of its industry peers.
OCSL has a debt to FCF ratio of 4.49. This is a neutral value as OCSL would need 4.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.49, OCSL is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 0.98 indicates that OCSL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, OCSL is in line with its industry, outperforming 51.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 0.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
OCSL has a Current Ratio of 4.61. This indicates that OCSL is financially healthy and has no problem in meeting its short term obligations.
OCSL has a better Current ratio (4.61) than 87.82% of its industry peers.
A Quick Ratio of 4.61 indicates that OCSL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.61, OCSL belongs to the top of the industry, outperforming 87.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.61 | ||
| Quick Ratio | 4.61 |
3. Growth
3.1 Past
OCSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.96%.
Measured over the past years, OCSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.40% on average per year.
Looking at the last year, OCSL shows a very negative growth in Revenue. The Revenue has decreased by -14.07% in the last year.
OCSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.91% yearly.
EPS 1Y (TTM)-16.96%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-32.73%
Revenue 1Y (TTM)-14.07%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-20.74%
3.2 Future
OCSL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.58% yearly.
OCSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.94% yearly.
EPS Next Y-19.77%
EPS Next 2Y-16.28%
EPS Next 3Y-10.58%
EPS Next 5YN/A
Revenue Next Year-18%
Revenue Next 2Y-10.95%
Revenue Next 3Y-6.94%
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 7.22, which indicates a rather cheap valuation of OCSL.
Based on the Price/Earnings ratio, OCSL is valued cheaper than 89.92% of the companies in the same industry.
OCSL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 8.82, the valuation of OCSL can be described as very reasonable.
83.19% of the companies in the same industry are more expensive than OCSL, based on the Price/Forward Earnings ratio.
OCSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, OCSL is valued cheaply inside the industry as 86.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of OCSL may justify a higher PE ratio.
A cheap valuation may be justified as OCSL's earnings are expected to decrease with -10.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-16.28%
EPS Next 3Y-10.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.64%, OCSL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.96, OCSL pays a better dividend. On top of this OCSL pays more dividend than 84.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, OCSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
5.2 History
The dividend of OCSL is nicely growing with an annual growth rate of 14.84%!
OCSL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OCSL pays out 341.20% 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.
DP341.2%
EPS Next 2Y-16.28%
EPS Next 3Y-10.58%
13.79
-0.06 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners37.23%
Inst Owner Change7.61%
Ins Owners0.31%
Ins Owner Change0.17%
Market Cap1.21B
Analysts73.33
Price Target14.03 (1.74%)
Short Float %1.82%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
Yearly Dividend2.22
Dividend Growth(5Y)14.84%
DP341.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.97%
Min EPS beat(2)-18.79%
Max EPS beat(2)-9.15%
EPS beat(4)0
Avg EPS beat(4)-7.95%
Min EPS beat(4)-18.79%
Max EPS beat(4)-0.73%
EPS beat(8)0
Avg EPS beat(8)-6.62%
EPS beat(12)1
Avg EPS beat(12)-5.22%
EPS beat(16)4
Avg EPS beat(16)-3.82%
Revenue beat(2)0
Avg Revenue beat(2)-8.46%
Min Revenue beat(2)-10.33%
Max Revenue beat(2)-6.59%
Revenue beat(4)0
Avg Revenue beat(4)-7.43%
Min Revenue beat(4)-10.33%
Max Revenue beat(4)-4.2%
Revenue beat(8)0
Avg Revenue beat(8)-9.06%
Revenue beat(12)3
Avg Revenue beat(12)-4.82%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.9%
PT rev (3m)-3.85%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-6.06%
EPS NY rev (3m)-6.6%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-5.03%
Revenue NY rev (1m)-2.09%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 8.82 | ||
| P/S | 3.64 | ||
| P/FCF | 3.77 | ||
| P/OCF | 3.77 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.91
EY13.85%
EPS(NY)1.56
Fwd EY11.33%
FCF(TTM)3.66
FCFY26.55%
OCF(TTM)3.66
OCFY26.55%
SpS3.79
BVpS16.76
TBVpS16.76
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.13% | ||
| ROCE | 9.66% | ||
| ROIC | 7.63% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 7.89% | ||
| OM | 85.05% | ||
| PM (TTM) | 13.84% | ||
| GM | 80.46% | ||
| FCFM | 96.52% |
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-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 4.49 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 697.32% | ||
| Current Ratio | 4.61 | ||
| Quick Ratio | 4.61 | ||
| Altman-Z | 0.53 |
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)101.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.96%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-32.73%
EPS Next Y-19.77%
EPS Next 2Y-16.28%
EPS Next 3Y-10.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.07%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-20.74%
Revenue Next Year-18%
Revenue Next 2Y-10.95%
Revenue Next 3Y-6.94%
Revenue Next 5YN/A
EBIT growth 1Y-7.27%
EBIT growth 3Y32.55%
EBIT growth 5Y24.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y529.98%
FCF growth 3YN/A
FCF growth 5Y-38.44%
OCF growth 1Y529.98%
OCF growth 3YN/A
OCF growth 5Y-38.44%