(TSLX) Sixth Street Specialty - Ratings and Ratios
Senior Secured Loans
TSLX EPS (Earnings per Share)
TSLX Revenue
Description: TSLX Sixth Street Specialty
Sixth Street Specialty Lending Inc (TSLX) is a US-based business development company (BDC) that operates within the Asset Management & Custody Banks sub-industry. As a BDC, TSLX provides financing to middle-market companies, typically in the form of senior secured loans.
The companys financial performance is influenced by key economic drivers such as interest rates, credit spreads, and the overall health of the corporate debt market. As a lender, TSLX benefits from rising interest rates, as it can earn higher yields on its loan portfolio. Conversely, a decline in credit spreads can lead to increased competition and downward pressure on yields.
To evaluate TSLXs performance, key performance indicators (KPIs) such as net investment income (NII), net asset value (NAV) per share, and the ratio of non-accrual loans to total loans are crucial. A stable or increasing NII and NAV per share indicate a healthy and profitable business, while a low ratio of non-accrual loans suggests effective credit risk management.
TSLXs valuation can be assessed using metrics such as the price-to-earnings (P/E) ratio and return on equity (RoE). With a P/E ratio of 11.90 and a RoE of 12.89%, the company appears to be reasonably valued relative to its earnings. However, it is essential to consider these metrics in the context of the companys peers and the broader BDC industry.
From a technical perspective, TSLXs stock price has been relatively stable, with a beta of 0.848 indicating lower volatility compared to the overall market. The stocks moving averages suggest a relatively neutral trend, with the short-term SMA20 above the long-term SMA200, indicating potential for growth.
TSLX Stock Overview
| Market Cap in USD | 2,276m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2014-03-21 |
TSLX Stock Ratings
| Growth Rating | 87.7% |
| Fundamental | 61.1% |
| Dividend Rating | 74.4% |
| Return 12m vs S&P 500 | 8.80% |
| Analyst Rating | 4.36 of 5 |
TSLX Dividends
| Dividend Yield 12m | 11.18% |
| Yield on Cost 5y | 25.66% |
| Annual Growth 5y | 2.09% |
| Payout Consistency | 95.5% |
| Payout Ratio | 43.1% |
TSLX Growth Ratios
| Growth Correlation 3m | 63.6% |
| Growth Correlation 12m | 88.8% |
| Growth Correlation 5y | 85.4% |
| CAGR 5y | 20.04% |
| CAGR/Max DD 5y | 0.70 |
| Sharpe Ratio 12m | 2.07 |
| Alpha | 17.40 |
| Beta | 0.509 |
| Volatility | 15.18% |
| Current Volume | 243.3k |
| Average Volume 20d | 399.1k |
| Stop Loss | 23.7 (-3.1%) |
| Signal | 0.79 |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (187.6m TTM) > 0 and > 6% of Revenue (6% = 27.5m TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA -0.55pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 7.00% (prev -68.73%; Δ 75.72pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.05 (>3.0%) and CFO 171.7m <= Net Income 187.6m (YES >=105%, WARN >=100%) |
| Net Debt (-39.2m) to EBITDA (81.4m) ratio: -0.48 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.00 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (94.0m) change vs 12m ago 1.33% (target <= -2.0% for YES) |
| Gross Margin 55.63% (prev 63.41%; Δ -7.78pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 13.45% (prev 13.27%; Δ 0.18pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.88 (EBITDA TTM 81.4m / Interest Expense TTM 107.4m) >= 6 (WARN >= 3) |
Altman Z'' 0.40
| (A) 0.01 = (Total Current Assets 63.9m - Total Current Liabilities 31.9m) / Total Assets 3.42b |
| (B) 0.03 = Retained Earnings (Balance) 95.2m / Total Assets 3.42b |
| (C) 0.03 = EBIT TTM 94.8m / Avg Total Assets 3.40b |
| (D) 0.05 = Book Value of Equity 96.1m / Total Liabilities 1.80b |
| Total Rating: 0.40 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 61.12
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield 4.22% = 2.11 |
| 3. FCF Margin 37.53% = 7.50 |
| 4. Debt/Equity 1.13 = 1.89 |
| 5. Debt/Ebitda 22.49 = -2.50 |
| 6. ROIC - WACC -2.34% = -2.92 |
| 7. RoE 11.68% = 0.97 |
| 8. Rev. Trend 71.32% = 3.57 |
| 9. Rev. CAGR 12.97% = 1.62 |
| 10. EPS Trend -22.95% = -0.57 |
| 11. EPS CAGR 14.45% = 1.44 |
What is the price of TSLX shares?
Over the past week, the price has changed by +1.70%, over one month by +2.64%, over three months by +8.15% and over the past year by +27.26%.
Is Sixth Street Specialty a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of TSLX is around 29.01 USD . This means that TSLX is currently undervalued and has a potential upside of +18.65% (Margin of Safety).
Is TSLX a buy, sell or hold?
- Strong Buy: 5
- Buy: 5
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the TSLX price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 24.4 | -0.2% |
| Analysts Target Price | 24.4 | -0.2% |
| ValueRay Target Price | 31.3 | 28.1% |
Last update: 2025-08-28 04:53
TSLX Fundamental Data Overview
CCE Cash And Equivalents = 39.2m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 12.0149
P/E Forward = 11.4416
P/S = 4.7985
P/B = 1.4069
P/EG = 1.2745
Beta = 0.852
Revenue TTM = 457.6m USD
EBIT TTM = 94.8m USD
EBITDA TTM = 81.4m USD
Long Term Debt = 1.80b USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 31.9m USD (from totalCurrentLiabilities, last quarter)
Debt = 1.83b USD (Calculated: Short Term 31.9m + Long Term 1.80b)
Net Debt = -39.2m USD (from netDebt column, last quarter)
Enterprise Value = 4.07b USD (2.28b + Debt 1.83b - CCE 39.2m)
Interest Coverage Ratio = 0.88 (Ebit TTM 94.8m / Interest Expense TTM 107.4m)
FCF Yield = 4.22% (FCF TTM 171.7m / Enterprise Value 4.07b)
FCF Margin = 37.53% (FCF TTM 171.7m / Revenue TTM 457.6m)
Net Margin = 41.00% (Net Income TTM 187.6m / Revenue TTM 457.6m)
Gross Margin = 55.63% ((Revenue TTM 457.6m - Cost of Revenue TTM 203.0m) / Revenue TTM)
Tobins Q-Ratio = 42.31 (Enterprise Value 4.07b / Book Value Of Equity 96.1m)
Interest Expense / Debt = 1.45% (Interest Expense 26.5m / Debt 1.83b)
Taxrate = 3.39% (from yearly Income Tax Expense: 6.55m / 193.1m)
NOPAT = 91.5m (EBIT 94.8m * (1 - 3.39%))
Current Ratio = 2.00 (Total Current Assets 63.9m / Total Current Liabilities 31.9m)
Debt / Equity = 1.13 (Debt 1.83b / last Quarter total Stockholder Equity 1.62b)
Debt / EBITDA = 22.49 (Net Debt -39.2m / EBITDA 81.4m)
Debt / FCF = 10.66 (Debt 1.83b / FCF TTM 171.7m)
Total Stockholder Equity = 1.61b (last 4 quarters mean)
RoA = 5.49% (Net Income 187.6m, Total Assets 3.42b )
RoE = 11.68% (Net Income TTM 187.6m / Total Stockholder Equity 1.61b)
RoCE = 2.78% (Ebit 94.8m / (Equity 1.61b + L.T.Debt 1.80b))
RoIC = 2.66% (NOPAT 91.5m / Invested Capital 3.44b)
WACC = 5.00% (E(2.28b)/V(4.11b) * Re(7.89%)) + (D(1.83b)/V(4.11b) * Rd(1.45%) * (1-Tc(0.03)))
Shares Correlation 5-Years: 100.0 | Cagr: 3.94%
Discount Rate = 7.89% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 70.46% ; FCFE base≈178.6m ; Y1≈117.3m ; Y5≈53.6m
Fair Price DCF = 11.18 (DCF Value 1.05b / Shares Outstanding 94.2m; 5y FCF grow -40.0% → 3.0% )
Revenue Correlation: 71.32 | Revenue CAGR: 12.97%
Rev Growth-of-Growth: -27.55
EPS Correlation: -22.95 | EPS CAGR: 14.45%
EPS Growth-of-Growth: -17.89
Additional Sources for TSLX Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle