SIXTH STREET SPECIALTY LENDI (TSLX) Stock Fundamental Analysis
NYSE:TSLX - New York Stock Exchange, Inc. - US83012A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSLX. TSLX was compared to 225 industry peers in the Capital Markets industry. Both the profitability and the financial health of TSLX get a neutral evaluation. Nothing too spectacular is happening here. 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 has reported a negative cash flow from operations.
TSLX had positive earnings in each of the past 5 years.
In multiple years TSLX reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TSLX (5.21%) is better than 69.41% of its industry peers.
With a decent Return On Equity value of 11.61%, TSLX is doing good in the industry, outperforming 63.93% of the companies in the same industry.
TSLX has a better Return On Invested Capital (5.61%) than 71.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSLX is in line with the industry average of 6.76%.
The last Return On Invested Capital (5.61%) for TSLX is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 11.61% | ||
| ROIC | 5.61% |
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
With a decent Profit Margin value of 38.66%, TSLX is doing good in the industry, outperforming 78.54% of the companies in the same industry.
In the last couple of years the Profit Margin of TSLX has declined.
TSLX's Operating Margin of 52.28% is amongst the best of the industry. TSLX outperforms 89.50% of its industry peers.
TSLX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 54.87%, TSLX is doing good in the industry, outperforming 63.93% of the companies in the same industry.
In the last couple of years the Gross Margin of TSLX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.28% | ||
| PM (TTM) | 38.66% | ||
| GM | 54.87% |
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
TSLX has more shares outstanding than it did 1 year ago.
TSLX has more shares outstanding than it did 5 years ago.
TSLX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that TSLX is in the distress zone and has some risk of bankruptcy.
TSLX has a Altman-Z score (1.08) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that TSLX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.18, TSLX is in line with its industry, outperforming 40.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.23 indicates that TSLX has no problem at all paying its short term obligations.
TSLX has a better Current ratio (2.23) than 72.15% of its industry peers.
TSLX has a Quick Ratio of 2.23. This indicates that TSLX is financially healthy and has no problem in meeting its short term obligations.
TSLX has a Quick ratio of 2.23. This is in the better half of the industry: TSLX outperforms 72.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The earnings per share for TSLX have decreased by 0.00% in the last year.
TSLX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.00% yearly.
The Revenue has grown by 10.16% in the past year. This is quite good.
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)0%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-1.61%
Revenue 1Y (TTM)10.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%7.14%
3.2 Future
Based on estimates for the next years, TSLX will show a decrease in Earnings Per Share. The EPS will decrease by -4.26% on average per year.
TSLX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.10% yearly.
EPS Next Y-5.2%
EPS Next 2Y-4.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.8%
Revenue Next 2Y-2.1%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 9.94 indicates a reasonable valuation of TSLX.
Based on the Price/Earnings ratio, TSLX is valued a bit cheaper than 71.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, TSLX is valued rather cheaply.
TSLX is valuated reasonably with a Price/Forward Earnings ratio of 10.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSLX indicates a somewhat cheap valuation: TSLX is cheaper than 67.12% of the companies listed in the same industry.
TSLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TSLX has a very decent profitability rating, which may justify a higher PE ratio.
TSLX's earnings are expected to decrease with -4.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.49
EPS Next 2Y-4.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TSLX has a Yearly Dividend Yield of 7.98%, which is a nice return.
Compared to an average industry Dividend Yield of 9.98, TSLX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, TSLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
5.2 History
The dividend of TSLX has a limited annual growth rate of 4.56%.
TSLX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TSLX decreased recently.
Dividend Growth(5Y)4.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
90.43% 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.
DP90.43%
EPS Next 2Y-4.26%
EPS Next 3YN/A
23.47
+0.4 (+1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners50.81%
Inst Owner Change-78.05%
Ins Owners0.32%
Ins Owner Change0.33%
Market Cap2.19B
Analysts83.53
Price Target23.61 (0.6%)
Short Float %1.14%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
Yearly Dividend1.86
Dividend Growth(5Y)4.56%
DP90.43%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.16%
Min EPS beat(2)1.14%
Max EPS beat(2)5.19%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-3.21%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.93%
EPS beat(12)7
Avg EPS beat(12)0.11%
EPS beat(16)10
Avg EPS beat(16)1.35%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)0.92%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.35%
PT rev (1m)3.91%
PT rev (3m)2.1%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 10.49 | ||
| P/S | 4.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.36
EY10.06%
EPS(NY)2.24
Fwd EY9.53%
FCF(TTM)-0.49
FCFYN/A
OCF(TTM)-0.49
OCFYN/A
SpS5.17
BVpS17.23
TBVpS17.23
PEG (NY)N/A
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 11.61% | ||
| ROCE | 7.1% | ||
| ROIC | 5.61% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 5.65% | ||
| OM | 52.28% | ||
| PM (TTM) | 38.66% | ||
| GM | 54.87% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 1.08 |
F-Score4
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)0%
EPS 3Y2.84%
EPS 5Y4%
EPS Q2Q%-1.61%
EPS Next Y-5.2%
EPS Next 2Y-4.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.16%
Revenue growth 3Y20.09%
Revenue growth 5Y13.92%
Sales Q2Q%7.14%
Revenue Next Year-2.8%
Revenue Next 2Y-2.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.85%
EBIT growth 3Y22.46%
EBIT growth 5Y14.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.79%
OCF growth 3YN/A
OCF growth 5YN/A