(TSLX) Sixth Street Specialty - Ratings and Ratios
Senior Loans, Mezzanine Debt, Equity, Structured Products, Bonds
Dividends
| Dividend Yield | 11.26% |
| Yield on Cost 5y | 21.07% |
| Yield CAGR 5y | 2.61% |
| Payout Consistency | 95.5% |
| Payout Ratio | 42.9% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 15.5% |
| Value at Risk 5%th | 25.5% |
| Relative Tail Risk | -0.34% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.51 |
| Alpha | 3.42 |
| CAGR/Max DD | 1.14 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.578 |
| Beta | 0.594 |
| Beta Downside | 0.717 |
| Drawdowns 3y | |
|---|---|
| Max DD | 16.76% |
| Mean DD | 3.23% |
| Median DD | 2.51% |
Description: TSLX Sixth Street Specialty November 11, 2025
Sixth Street Specialty Lending, Inc. (TSLX) operates as a Business Development Company that targets senior-secured, unsecured, mezzanine, and equity-linked financing for U.S. middle-market firms. It focuses on enterprise values of $50 million–$1 billion (often larger) and EBITDA of $10 million–$250 million, deploying $15 million–$350 million per transaction and capable of arranging syndicated deals up to $500 million. Its sector coverage spans business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalties, education, and specialty finance.
Key operating metrics (as of Q3 2024) show TSLX’s portfolio net asset value (NAV) at roughly $2.3 billion, with an average weighted-average yield of ~9.5% and a portfolio-level credit quality measured by a weighted-average credit rating of B-/BB+. The BDC’s dividend payout ratio hovers around 95% of earnings, reflecting its regulatory requirement to distribute most cash flow. Macro-driven factors that materially affect TSLX include the U.S. interest-rate outlook (higher rates compress loan spreads but can improve floating-rate income) and the health of the middle-market credit market, where default rates have risen modestly to ~2.2% year-to-date, still below the historical peak of ~4% during the 2008-09 crisis.
For a deeper quantitative assessment, consider reviewing ValueRay’s platform for granular credit metrics, peer-group comparisons, and scenario analysis on TSLX’s exposure to rate-sensitive sectors.
Piotroski VR‑10 (Strict, 0-10) 2.0
| Net Income (191.5m TTM) > 0 and > 6% of Revenue (6% = 21.7m TTM) |
| FCFTA 0.03 (>2.0%) and ΔFCFTA -2.14pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 28.98% (prev 17.0k%; Δ -17.0kpp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.03 (>3.0%) and CFO 116.1m <= Net Income 191.5m (YES >=105%, WARN >=100%) |
| Net Debt (1.75b) to EBITDA (224.7m) ratio: 7.79 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.73 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (94.2m) change vs 12m ago 1.31% (target <= -2.0% for YES) |
| Gross Margin 70.98% (prev 73.39%; Δ -2.41pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 10.28% (prev 10.69%; Δ -0.41pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.76 (EBITDA TTM 224.7m / Interest Expense TTM 106.1m) >= 6 (WARN >= 3) |
Altman Z'' 0.69
| (A) 0.03 = (Total Current Assets 132.9m - Total Current Liabilities 28.1m) / Total Assets 3.51b |
| (B) 0.03 = Retained Earnings (Balance) 91.7m / Total Assets 3.51b |
| (C) 0.05 = EBIT TTM 187.2m / Avg Total Assets 3.52b |
| (D) 0.05 = Book Value of Equity 92.7m / Total Liabilities 1.89b |
| Total Rating: 0.69 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 61.29
| 1. Piotroski 2.0pt |
| 2. FCF Yield 3.02% |
| 3. FCF Margin 32.09% |
| 4. Debt/Equity 1.13 |
| 5. Debt/Ebitda 7.79 |
| 6. ROIC - WACC (= 0.28)% |
| 7. RoE 11.89% |
| 8. Rev. Trend 38.61% |
| 9. EPS Trend 33.12% |
What is the price of TSLX shares?
Over the past week, the price has changed by +2.15%, over one month by +2.15%, over three months by -7.47% and over the past year by +13.52%.
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 | 23.8 | 6.6% |
| Analysts Target Price | 23.8 | 6.6% |
| ValueRay Target Price | 26.8 | 20.4% |
TSLX Fundamental Data Overview December 05, 2025
P/E Trailing = 10.8341
P/E Forward = 11.3895
P/S = 4.5181
P/B = 1.2957
P/EG = 1.2745
Beta = 0.703
Revenue TTM = 361.8m USD
EBIT TTM = 187.2m USD
EBITDA TTM = 224.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 1.83b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.75b USD (from netDebt column, last quarter)
Enterprise Value = 3.85b USD (2.10b + Debt 1.83b - CCE 83.2m)
Interest Coverage Ratio = 1.76 (Ebit TTM 187.2m / Interest Expense TTM 106.1m)
FCF Yield = 3.02% (FCF TTM 116.1m / Enterprise Value 3.85b)
FCF Margin = 32.09% (FCF TTM 116.1m / Revenue TTM 361.8m)
Net Margin = 52.94% (Net Income TTM 191.5m / Revenue TTM 361.8m)
Gross Margin = 70.98% ((Revenue TTM 361.8m - Cost of Revenue TTM 105.0m) / Revenue TTM)
Gross Margin QoQ = 70.57% (prev 77.42%)
Tobins Q-Ratio = 1.10 (Enterprise Value 3.85b / Total Assets 3.51b)
Interest Expense / Debt = 1.30% (Interest Expense 23.9m / Debt 1.83b)
Taxrate = 3.68% (1.71m / 46.3m)
NOPAT = 180.3m (EBIT 187.2m * (1 - 3.68%))
Current Ratio = 4.73 (Total Current Assets 132.9m / Total Current Liabilities 28.1m)
Debt / Equity = 1.13 (Debt 1.83b / totalStockholderEquity, last quarter 1.62b)
Debt / EBITDA = 7.79 (Net Debt 1.75b / EBITDA 224.7m)
Debt / FCF = 15.08 (Net Debt 1.75b / FCF TTM 116.1m)
Total Stockholder Equity = 1.61b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.46% (Net Income 191.5m / Total Assets 3.51b)
RoE = 11.89% (Net Income TTM 191.5m / Total Stockholder Equity 1.61b)
RoCE = 5.38% (EBIT 187.2m / Capital Employed (Total Assets 3.51b - Current Liab 28.1m))
RoIC = 5.24% (NOPAT 180.3m / Invested Capital 3.44b)
WACC = 4.97% (E(2.10b)/V(3.93b) * Re(8.21%) + D(1.83b)/V(3.93b) * Rd(1.30%) * (1-Tc(0.04)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.59%
[DCF Debug] Terminal Value 69.72% ; FCFE base≈146.6m ; Y1≈96.2m ; Y5≈44.0m
Fair Price DCF = 8.90 (DCF Value 841.0m / Shares Outstanding 94.5m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 33.12 | EPS CAGR: -4.50% | SUE: 0.37 | # QB: 0
Revenue Correlation: 38.61 | Revenue CAGR: 10.02% | SUE: -0.73 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.50 | Chg30d=-0.010 | Revisions Net=-1 | Analysts=9
EPS next Year (2026-12-31): EPS=2.01 | Chg30d=-0.036 | Revisions Net=-2 | Growth EPS=-7.6% | Growth Revenue=-5.5%
Additional Sources for TSLX Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle