TSLX Stock Analysis: Sixth Street Specialty | NYSE
Asset Management | NYSE, USA | Market Cap: 1.735m USD | 12M Return: -18.6% | US83012A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.62M
EPS Trend: -56.3%
Qual. Beats: 0
Rev. Trend: -62.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Sixth Street Specialty Lending (TSLX) is a U.S.-listed business development company (BDC) that provides financing solutions to middle-market companies, primarily in the United States. Its investment offerings include senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, corporate bonds, structured products, and equity securities, with transaction sizes ranging from $15 million to $350 million and the ability to arrange syndications up to $500 million. The fund targets companies with enterprise values between $50 million and $1 billion+ and EBITDA between $10 million and $250 million, supporting uses such as organic growth, acquisitions, recapitalizations, buyouts, and refinancings.
The fund invests across a diverse range of industries, including business services, software and technology, healthcare, energy, consumer and retail, manufacturing, industrials, royalty-related businesses, education, and specialty finance. As a BDC, the company operates under a regulated structure that typically requires it to distribute the majority of its taxable income to shareholders, generally positioning it as a yield-oriented investment vehicle for investors seeking exposure to private middle-market credit.
- Net interest margin expands on higher SOFR base rates
- Middle market origination volume drives net investment income
- Credit quality trends in software and healthcare lending
| Net Income: 89.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.63 > 1.0 |
| NWC/Revenue: -17.10% < 20% (prev -6.89%; Δ -10.21% < -1%) |
| CFO/TA 0.04 > 3% & CFO 155.8m > Net Income 89.0m |
| Net Debt (1.73b) to EBITDA (140.8m): 12.29 < 3 |
| Current Ratio: 0.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.0m) vs 12m ago 1.12% < -2% |
| Gross Margin: 74.72% > 18% (prev 70.88%; Δ 3.84% > 0.5%) |
| Asset Turnover: 9.91% > 50% (prev 10.69%; Δ -0.78% > 0%) |
| Interest Coverage Ratio: 1.33 > 6 (EBIT TTM 140.8m / Interest Expense TTM 106.2m) |
| A: -0.02 (Total Current Assets 241.1m - Total Current Liabilities 300.0m) / Total Assets 3.54b |
| B: 0.00 (Retained Earnings 11.7m / Total Assets 3.54b) |
| C: 0.04 (EBIT TTM 140.8m / Avg Total Assets 3.48b) |
| D: 0.78 (Book Value of Equity 1.55b / Total Liabilities 1.99b) |
| Altman-Z'' = 0.99 = BB |
As of September 06, 2026, the stock is trading at USD 18.38 with a total of 202,271 shares traded. Over the past week, the price has changed by -1.92%, over one month by +2.05%, over three months by +6.67% and over the past year by -18.59%.
Current recommended Stop Loss: 17.20 (which is 6.4% or 3 ATR below the current price).
Sixth Street Specialty has received a consensus analysts rating of 4.36. Therefore, it is recommended to buy TSLX.
- StrongBuy: 5
- Buy: 5
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.8 | 7.6% |
P/E Trailing = 19.5699
P/E Forward = 10.3413
P/S = 4.2434
P/B = 1.136
P/EG = 1.2751
Revenue TTM = 344.7m USD
EBIT TTM = 140.8m USD
EBITDA TTM = 140.8m USD
Long Term Debt = 1.62b USD (estimated: total debt 1.92b - short term 300.0m)
Short Term Debt = 300.0m USD (from shortTermDebt, last quarter)
Debt = 1.92b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.73b USD (calculated: Debt 1.92b - CCE 193.6m)
Enterprise Value = 3.47b USD (1.74b + Debt 1.92b - CCE 193.6m)
Interest Coverage Ratio = 1.33 (Ebit TTM 140.8m / Interest Expense TTM 106.2m)
EV/FCF = 22.25x (Enterprise Value 3.47b / FCF TTM 155.8m)
FCF Yield = 4.49% (FCF TTM 155.8m / Enterprise Value 3.47b)
FCF Margin = 45.21% (FCF TTM 155.8m / Revenue TTM 344.7m)
Net Margin = 25.83% (Net Income TTM 89.0m / Revenue TTM 344.7m)
Gross Margin = 74.72% ((Revenue TTM 344.7m - Cost of Revenue TTM 87.1m) / Revenue TTM)
Gross Margin QoQ = 82.22% (prev 60.42%)
Tobins Q-Ratio = 0.98 (Enterprise Value 3.47b / Total Assets 3.54b)
Interest Expense / Debt = 5.52% (Interest Expense 106.2m / Debt 1.92b)
Taxrate = 6.29% (5.98m / 95.0m)
NOPAT = 132.0m (EBIT 140.8m * (1 - 6.29%))
Current Ratio = 0.80 (Total Current Assets 241.1m / Total Current Liabilities 300.0m)
Debt / Equity = 1.24 (Debt 1.92b / totalStockholderEquity, last quarter 1.55b)
Debt / EBITDA = 12.29 (Net Debt 1.73b / EBITDA 140.8m)
Debt / FCF = 11.11 (Net Debt 1.73b / FCF TTM 155.8m)
Total Stockholder Equity = 387b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.56% (Net Income 89.0m / Total Assets 3.54b)
RoE = 0.02% (Net Income TTM 89.0m / Total Stockholder Equity 387b)
RoCE = 0.04% (EBIT 140.8m / Capital Employed (Equity 387b + L.T.Debt 1.62b))
RoIC = 3.74% (NOPAT 132.0m / Invested Capital 3.53b)
WACC = 6.43% (E(1.74b)/V(3.66b) * Re(7.82%) + D(1.92b)/V(3.66b) * Rd(5.52%) * (1-Tc(0.06)))
Discount Rate = 7.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.53 | Cagr: 2.94%
[DCF] Terminal Value 74.08% ; FCFF base≈162.2m ; Y1≈150.2m ; Y5≈135.3m
[DCF] Fair Price = 4.31 (EV 2.14b - Net Debt 1.73b = Equity 411.4m / Shares 95.3m; r=8.35% [WACC [floored]]; 5y FCF grow -9.27% → 2.50% )
EPS Correlation: -56.34 | EPS CAGR: -3.37% | SUE: 0.35 | # QB: 0
Revenue Correlation: -62.54 | Revenue CAGR: -3.69% | SUE: 0.64 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.44 | Chg30d=+1.63% | Revisions=+50% | Analysts=11
EPS current Year (2026-12-31): EPS=1.74 | Chg30d=+1.22% | Revisions=+44% | GrowthEPS=-25.4% | GrowthRev=-13.7%
EPS next Year (2027-12-31): EPS=1.83 | Chg30d=+1.94% | Revisions=+50% | GrowthEPS=+5.3% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +63% (up=14, down=2)