OAKTREE SPECIALTY LENDING CO (OCSL) Stock Fundamental Analysis
NASDAQ:OCSL - Nasdaq - US67401P4054 - Common Stock - Currency: USD
Taking everything into account, OCSL scores 5 out of 10 in our fundamental rating. OCSL was compared to 233 industry peers in the Capital Markets industry. OCSL has a medium profitability rating, but doesn't score so well on its financial health evaluation. OCSL has a bad growth rate and is valued cheaply.
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.
In the past 5 years OCSL has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: OCSL reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.29%, OCSL is doing worse than 72.53% of the companies in the same industry.
The Return On Equity of OCSL (0.61%) is worse than 71.24% of its industry peers.
OCSL has a Return On Invested Capital of 7.97%. This is amongst the best in the industry. OCSL outperforms 80.26% of its industry peers.
OCSL had an Average Return On Invested Capital over the past 3 years of 7.27%. This is in line with the industry average of 7.84%.
The last Return On Invested Capital (7.97%) for OCSL is above the 3 year average (7.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.61% | ||
| ROIC | 7.97% |
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
OCSL's Profit Margin of 2.55% is on the low side compared to the rest of the industry. OCSL is outperformed by 69.53% of its industry peers.
In the last couple of years the Profit Margin of OCSL has declined.
With an excellent Operating Margin value of 83.85%, OCSL belongs to the best of the industry, outperforming 99.57% of the companies in the same industry.
OCSL's Operating Margin has improved in the last couple of years.
OCSL's Gross Margin of 79.61% is amongst the best of the industry. OCSL outperforms 84.12% of its industry peers.
OCSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.85% | ||
| PM (TTM) | 2.55% | ||
| GM | 79.61% |
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 0.50. This is a bad value and indicates that OCSL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.50, OCSL is doing worse than 64.38% of the companies in the same industry.
OCSL has a debt to FCF ratio of 6.00. This is a neutral value as OCSL would need 6.00 years to pay back of all of its debts.
OCSL has a better Debt to FCF ratio (6.00) than 64.38% of its industry peers.
OCSL has a Debt/Equity ratio of 0.98. This is a neutral value indicating OCSL is somewhat dependend on debt financing.
OCSL has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.5 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
OCSL has a Current Ratio of 1.04. This is a normal value and indicates that OCSL is financially healthy and should not expect problems in meeting its short term obligations.
OCSL has a Current ratio of 1.04. This is comparable to the rest of the industry: OCSL outperforms 44.64% of its industry peers.
A Quick Ratio of 1.04 indicates that OCSL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, OCSL perfoms like the industry average, outperforming 48.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
OCSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.81%.
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.
The Revenue for OCSL has decreased by -10.60% in the past year. This is quite bad
The Revenue has been growing by 20.91% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-11.81%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-19.64%
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-17.51%
3.2 Future
Based on estimates for the next years, OCSL will show a decrease in Earnings Per Share. The EPS will decrease by -8.95% on average per year.
OCSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.39% yearly.
EPS Next Y-15.02%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue Next Year-15.88%
Revenue Next 2Y-9.01%
Revenue Next 3Y-6.39%
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
The Price/Earnings ratio is 6.89, which indicates a rather cheap valuation of OCSL.
Compared to the rest of the industry, the Price/Earnings ratio of OCSL indicates a rather cheap valuation: OCSL is cheaper than 89.27% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OCSL to the average of the S&P500 Index (27.30), we can say OCSL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.51, the valuation of OCSL can be described as reasonable.
85.41% of the companies in the same industry are more expensive than OCSL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OCSL to the average of the S&P500 Index (21.76), we can say OCSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
OCSL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OCSL is cheaper than 83.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| 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 -8.95% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
5. Dividend
5.1 Amount
OCSL has a Yearly Dividend Yield of 13.50%, which is a nice return.
OCSL's Dividend Yield is rather good when compared to the industry average which is at 8.10. OCSL pays more dividend than 86.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, OCSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
5.2 History
On average, the dividend of OCSL grows each year by 14.84%, which is quite nice.
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 1860.60% 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.
DP1860.6%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
14.41
+0.04 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change0.02%
Ins Owners0.31%
Ins Owner Change0.27%
Market Cap1.27B
Analysts73.85
Price Target14.59 (1.25%)
Short Float %1.42%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.5% |
Yearly Dividend2.22
Dividend Growth(5Y)14.84%
DP1860.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.94%
Min EPS beat(2)-9.15%
Max EPS beat(2)-0.73%
EPS beat(4)0
Avg EPS beat(4)-4.28%
Min EPS beat(4)-9.15%
Max EPS beat(4)-0.73%
EPS beat(8)0
Avg EPS beat(8)-4.85%
EPS beat(12)1
Avg EPS beat(12)-4.28%
EPS beat(16)5
Avg EPS beat(16)-0.51%
Revenue beat(2)0
Avg Revenue beat(2)-9.47%
Min Revenue beat(2)-10.33%
Max Revenue beat(2)-8.6%
Revenue beat(4)0
Avg Revenue beat(4)-7.36%
Min Revenue beat(4)-10.33%
Max Revenue beat(4)-4.2%
Revenue beat(8)0
Avg Revenue beat(8)-8.62%
Revenue beat(12)3
Avg Revenue beat(12)-4.31%
Revenue beat(16)7
Avg Revenue beat(16)1.55%
PT rev (1m)-1.38%
PT rev (3m)-10.16%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-5.57%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-8.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 8.51 | ||
| P/S | 3.59 | ||
| P/FCF | 5.26 | ||
| P/OCF | 5.26 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.09
EY14.5%
EPS(NY)1.69
Fwd EY11.75%
FCF(TTM)2.74
FCFY19.03%
OCF(TTM)2.74
OCFY19.03%
SpS4.02
BVpS16.75
TBVpS16.75
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.61% | ||
| ROCE | 10.08% | ||
| ROIC | 7.97% | ||
| ROICexc | 8.24% | ||
| ROICexgc | 8.24% | ||
| OM | 83.85% | ||
| PM (TTM) | 2.55% | ||
| GM | 79.61% | ||
| FCFM | 68.25% |
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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2676.83% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| 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)-11.81%
EPS 3Y32.9%
EPS 5Y35.4%
EPS Q2Q%-19.64%
EPS Next Y-15.02%
EPS Next 2Y-12.86%
EPS Next 3Y-8.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y22.15%
Revenue growth 5Y20.91%
Sales Q2Q%-17.51%
Revenue Next Year-15.88%
Revenue Next 2Y-9.01%
Revenue Next 3Y-6.39%
Revenue Next 5YN/A
EBIT growth 1Y-3.85%
EBIT growth 3Y32.55%
EBIT growth 5Y24.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y821.87%
FCF growth 3YN/A
FCF growth 5Y-38.44%
OCF growth 1Y821.87%
OCF growth 3YN/A
OCF growth 5Y-38.44%