OCSL Stock Analysis: Oaktree Specialty Lending | NASDAQ
Asset Management | NASDAQ, USA | Market Cap: 1.002m USD | 12M Return: 0.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.84M
EPS Trend: -88.2%
Qual. Beats: 0
Rev. Trend: -12.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: under 40 is mostly noise, over 50 gets interesting, and over 70 is strong.
Oaktree Specialty Lending Corporation (OCSL) is a business development company (BDC) that provides debt and equity capital to small and mid-sized companies, primarily in North America. It focuses on middle market lending, including first and second lien debt, mezzanine financing, bridge loans, and preferred equity, with investments ranging from $5 million to $75 million in companies with enterprise values between $20 million and $150 million and EBITDA between $3 million and $50 million. The firm serves a broad range of sectors, including business services, healthcare, education, manufacturing, software, consumer and retail, media, pharmaceuticals, and real estate, and typically seeks to act as a lead investor in its portfolio companies.
BDCs are regulated under the Investment Company Act of 1940 and are generally required to distribute the majority of their taxable income to shareholders, which influences their typical appeal to income-focused investors. Oaktree Specialty Lending operates as part of the broader asset management industry, with Oaktree Capital Management serving as its external investment adviser.
- Floating-rate loan portfolio gains from Fed rate outlook shifts
- Middle market credit quality pressures drive net asset value changes
- Dividend coverage tightens as spread compresses on borrowing costs
| Net Income: 49.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -7.41 > 1.0 |
| NWC/Revenue: -113.5% < 20% (prev 123.6%; Δ -237.1% < -1%) |
| CFO/TA 0.00 > 3% & CFO 12.5m > Net Income 49.6m |
| Net Debt (1.43b) to EBITDA (230.1m): 6.22 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (88.1m) vs 12m ago 2.53% < -2% |
| Gross Margin: 78.50% > 18% (prev -1.27%; Δ 79.77% > 0.5%) |
| Asset Turnover: 9.54% > 50% (prev 3.96%; Δ 5.58% > 0%) |
| Interest Coverage Ratio: 1.18 > 6 (EBIT TTM 128.9m / Interest Expense TTM 109.4m) |
| A: -0.11 (Total Current Assets 110.5m - Total Current Liabilities 434.0m) / Total Assets 2.89b |
| B: -0.33 (Retained Earnings -968.9m / Total Assets 2.89b) |
| C: 0.04 (EBIT TTM 128.9m / Avg Total Assets 2.99b) |
| D: 0.91 (Book Value of Equity 1.38b / Total Liabilities 1.51b) |
| Altman-Z'' = -0.57 = B |
As of July 02, 2026, the stock is trading at USD 11.94 with a total of 891,511 shares traded. Over the past week, the price has changed by +6.95%, over one month by +3.57%, over three months by +11.71% and over the past year by +0.07%.
Current recommended Stop Loss: 11.10 (which is 7% or 3 ATR below the current price).
Oaktree Specialty Lending has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold OCSL.
- StrongBuy: 1
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 12.4 | 4.1% |
P/E Trailing = 19.2797
P/E Forward = 8.881
P/S = 3.3616
P/B = 0.7243
P/EG = 0.9343
Revenue TTM = 284.9m USD
EBIT TTM = 128.9m USD
EBITDA TTM = 230.1m USD
Long Term Debt = 1.05b USD (estimated: total debt 1.48b - short term 434.0m)
Short Term Debt = 434.0m USD (from shortTermDebt, last quarter)
Debt = 1.48b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.43b USD (calculated: Debt 1.48b - CCE 51.3m)
Enterprise Value = 2.43b USD (1.00b + Debt 1.48b - CCE 51.3m)
Interest Coverage Ratio = 1.18 (Ebit TTM 128.9m / Interest Expense TTM 109.4m)
EV/FCF = 194.3x (Enterprise Value 2.43b / FCF TTM 12.5m)
FCF Yield = 0.51% (FCF TTM 12.5m / Enterprise Value 2.43b)
FCF Margin = 4.39% (FCF TTM 12.5m / Revenue TTM 284.9m)
Net Margin = 17.43% (Net Income TTM 49.6m / Revenue TTM 284.9m)
Gross Margin = 78.50% ((Revenue TTM 284.9m - Cost of Revenue TTM 61.2m) / Revenue TTM)
Gross Margin QoQ = 86.31% (prev 87.83%)
Tobins Q-Ratio = 0.84 (Enterprise Value 2.43b / Total Assets 2.89b)
Interest Expense / Debt = 7.38% (Interest Expense 109.4m / Debt 1.48b)
Taxrate = 1.84% (932k / 50.6m)
NOPAT = 126.5m (EBIT 128.9m * (1 - 1.84%))
Current Ratio = 0.25 (Total Current Assets 110.5m / Total Current Liabilities 434.0m)
Debt / Equity = 1.07 (Debt 1.48b / totalStockholderEquity, last quarter 1.38b)
Debt / EBITDA = 6.22 (Net Debt 1.43b / EBITDA 230.1m)
Debt / FCF = 114.2 (Net Debt 1.43b / FCF TTM 12.5m)
Total Stockholder Equity = 1.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.66% (Net Income 49.6m / Total Assets 2.89b)
RoE = 3.45% (Net Income TTM 49.6m / Total Stockholder Equity 1.44b)
RoCE = 5.18% (EBIT 128.9m / Capital Employed (Equity 1.44b + L.T.Debt 1.05b))
RoIC = 4.39% (NOPAT 126.5m / Invested Capital 2.88b)
WACC = 7.69% (E(1.00b)/V(2.48b) * Re(8.34%) + D(1.48b)/V(2.48b) * Rd(7.38%) * (1-Tc(0.02)))
Discount Rate = 8.34% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.89 | Cagr: 5.65%
[DCF] Terminal Value 73.10% ; FCFF base≈104.1m ; Y1≈91.3m ; Y5≈73.8m
[DCF] Fair Price = N/A (negative equity: EV 1.18b - Net Debt 1.43b = -246.2m; debt exceeds intrinsic value)
EPS Correlation: -88.24 | EPS CAGR: -21.21% | SUE: 0.09 | # QB: 0
Revenue Correlation: -12.43 | Revenue CAGR: -3.10% | SUE: -0.28 | # QB: 0
EPS current Year (2026-09-30): EPS=1.50 | Chg30d=-0.81% | Revisions=-25% | GrowthEPS=-14.9% | GrowthRev=-10.2%
EPS next Year (2027-09-30): EPS=1.41 | Chg30d=-4.06% | Revisions=-56% | GrowthEPS=-5.7% | GrowthRev=+0.1%
[Analyst] Revisions Ratio: -56%