(TSLX) Sixth Street Specialty - NYSE
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 1.539m USD | Total Return: -21% in 12m
Avg Turnover: 12.1M
EPS Trend: -7.2%
Qual. Beats: -1
Rev. Trend: 0.3%
Qual. Beats: -2
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
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: 107.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -5.67 > 1.0 |
| NWC/Revenue: 18.8k% < 20% (prev -4.16%; Δ 18.8k% < -1%) |
| CFO/TA 0.00 > 3% & CFO 144.1m > Net Income 107.5m |
| Current Ratio: 2.42k > 1.5 & < 3 |
| Outstanding Shares: last quarter (94.7m) vs 12m ago 1.11% < -2% |
| Gross Margin: 72.98% > 18% (prev 68.89%; Δ 4.09% > 0.5%) |
| Asset Turnover: 0.02% > 50% (prev 9.83%; Δ -9.81% > 0%) |
| Interest Coverage Ratio: 1.41 > 6 (EBIT TTM 147.9m / Interest Expense TTM 104.9m) |
| A: 0.02 (Total Current Assets 63.7b - Total Current Liabilities 26.3m) / Total Assets 3393b |
| B: 0.00 (Retained Earnings 11.1m / Total Assets 3393b) |
| C: 0.00 (EBIT TTM 147.9m / Avg Total Assets 1698b) |
| D: 0.83 (Book Value of Equity 1543b / Total Liabilities 1850b) |
| Altman-Z'' = 1.00 = BB |
As of June 28, 2026, the stock is trading at USD 16.89 with a total of 658,033 shares traded. Over the past week, the price has changed by +1.69%, over one month by +0.64%, over three months by -2.09% and over the past year by -20.99%.
Current recommended Stop Loss: 16.20 (which is 4.1% or 1.5 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 | 17.2% |
P/E Trailing = 14.087
P/E Forward = 11.9617
P/S = 3.6125
P/B = 0.9978
P/EG = 1.2751
Revenue TTM = 338.2m USD
EBIT TTM = 147.9m USD
EBITDA TTM = 147.9m USD
Long Term Debt = 1.80b USD (estimated: total debt 1.80b - short term 300k)
Short Term Debt = 300k USD (from shortTermDebt, last quarter)
Debt = 1.80b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -27.4b USD (calculated: Debt 1.80b - CCE 29.2b)
Enterprise Value = 1.54b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 1.41 (Ebit TTM 147.9m / Interest Expense TTM 104.9m)
EV/FCF = 10.68x (Enterprise Value 1.54b / FCF TTM 144.1m)
FCF Yield = 9.36% (FCF TTM 144.1m / Enterprise Value 1.54b)
FCF Margin = 42.61% (FCF TTM 144.1m / Revenue TTM 338.2m)
Net Margin = 31.80% (Net Income TTM 107.5m / Revenue TTM 338.2m)
Gross Margin = 72.98% ((Revenue TTM 338.2m - Cost of Revenue TTM 91.4m) / Revenue TTM)
Gross Margin QoQ = 60.42% (prev 76.83%)
Tobins Q-Ratio = 0.00 (Enterprise Value 1.54b / Total Assets 3393b)
Interest Expense / Debt = 5.81% (Interest Expense 104.9m / Debt 1.80b)
Taxrate = 4.94% (5.59m / 113.1m)
NOPAT = 140.6m (EBIT 147.9m * (1 - 4.94%))
Current Ratio = 2.42k (out of range, set to none) (Total Current Assets 63.7b / Total Current Liabilities 26.3m)
Debt / Equity = 0.00 (Debt 1.80b / totalStockholderEquity, last quarter 1543b)
Debt / EBITDA = -185.1 (out of range, set to none) (Net Debt -27.4b / EBITDA 147.9m)
Debt / FCF = -190.0 (out of range, set to none) (Net Debt -27.4b / FCF TTM 144.1m)
Total Stockholder Equity = 387b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.01% (Net Income 107.5m / Total Assets 3393b)
RoE = 0.03% (Net Income TTM 107.5m / Total Stockholder Equity 387b)
RoCE = 0.04% (EBIT 147.9m / Capital Employed (Equity 387b + L.T.Debt 1.80b))
RoIC = 0.00% (NOPAT 140.6m / Invested Capital 3393b)
WACC = 6.54% (E(1.54b)/V(3.34b) * Re(7.72%) + D(1.80b)/V(3.34b) * Rd(5.81%) * (1-Tc(0.05)))
Discount Rate = 7.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 3.41%
[DCF] Terminal Value 73.10% ; FCFF base≈165.9m ; Y1≈145.5m ; Y5≈117.5m
[DCF] Fair Price = 308.0 (EV 1.89b - Net Debt -27.4b = Equity 29.3b / Shares 95.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -7.18 | EPS CAGR: -0.28% | SUE: -1.94 | # QB: -1
Revenue Correlation: 0.34 | Revenue CAGR: 0.03% | SUE: -1.33 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.42 | Chg30d=-14.67% | Revisions=-67% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.43 | Chg30d=-13.01% | Revisions=-67% | Analysts=10
EPS current Year (2026-12-31): EPS=1.72 | Chg30d=-13.28% | Revisions=-69% | GrowthEPS=-26.3% | GrowthRev=-14.5%
EPS next Year (2027-12-31): EPS=1.81 | Chg30d=-7.08% | Revisions=-67% | GrowthEPS=+5.8% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: -69%