TSLX Stock Analysis: Sixth Street Specialty | NYSE
Asset Management | NYSE, USA | Market Cap: 1.682m USD | 12M Return: -8.9% | US83012A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.92M
EPS Trend: -72.6%
Qual. Beats: 0
Rev. Trend: -82.9%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a Business Development Company (BDC) that primarily finances U.S. middle-market companies through senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and selective investments in corporate bonds, equity securities, structured products, and co-investments. Its capital supports a range of corporate purposes including organic growth, acquisitions, market or product expansion, restructurings, recapitalizations, growth capital, buyouts, and refinancing. The fund targets companies with enterprise values between $50 million and $1 billion (or more) and EBITDA of $10 million to $250 million, with individual debt transaction sizes typically ranging from $15 million to $350 million and syndicated transactions up to $500 million.
TSLX invests across a diverse set of industries, including business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty-related businesses, education, and specialty finance. Listed on the NYSE with a small-cap market capitalization, the company falls within the Financials sector (Asset Management & Custody Banks) and operates with the flexibility to hold sizeable positions within its credits and invest across the capital structure.
As a BDC, Sixth Street Specialty Lending is structured to provide financing that typically falls between traditional bank lending and broadly distributed institutional debt, often serving companies that require customized capital solutions. BDCs are regulated under the Investment Company Act of 1940 and are generally required to distribute a substantial portion of their taxable income to shareholders as dividends.
- Floating-rate loan portfolio benefits from elevated rate environment
- Middle market deal origination accelerates portfolio growth
- Non-accruals tick higher on borrower credit deterioration
| Net Income: 78.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -2.86 > 1.0 |
| NWC/Revenue: 17.83% < 20% (prev 10.15%; Δ 7.69% < -1%) |
| CFO/TA 0.03 > 3% & CFO 89.1m > Net Income 78.9m |
| Net Debt (1.83b) to EBITDA (157.7m): 11.61 < 3 |
| Current Ratio: 3.43 > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.3m) vs 12m ago 1.17% < -2% |
| Gross Margin: 75.93% > 18% (prev 70.98%; Δ 4.95% > 0.5%) |
| Asset Turnover: 10.08% > 50% (prev 10.31%; Δ -0.23% > 0%) |
| Interest Coverage Ratio: 1.40 > 6 (EBIT TTM 157.7m / Interest Expense TTM 112.8m) |
| A: 0.02 (Total Current Assets 88.7m - Total Current Liabilities 25.9m) / Total Assets 3.48b |
| B: 0.00 (Retained Earnings 6.11m / Total Assets 3.48b) |
| C: 0.05 (EBIT TTM 157.7m / Avg Total Assets 3.50b) |
| D: 0.80 (Book Value of Equity 1.55b / Total Liabilities 1.93b) |
| Altman-Z'' = 1.27 = BB |
As of November 15, 2026, the stock is trading at USD 17.64 with a total of 301,796 shares traded. Over the past week, the price has changed by -0.06%, over one month by +3.04%, over three months by -5.81% and over the past year by -8.91%.
Current recommended Stop Loss: 17.00 (which is 3.6% or 1.5 ATR below the current price).
Sixth Street Specialty has received a consensus analysts rating of 4.45. Therefore, it is recommended to buy TSLX.
- StrongBuy: 6
- Buy: 4
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.5 | 10.7% |
P/E Trailing = 21.4245
P/E Forward = 9.8814
P/S = 4.2202
P/B = 1.0898
P/EG = 1.2751
Revenue TTM = 352.4m USD
EBIT TTM = 157.7m USD
EBITDA TTM = 157.7m USD
Long Term Debt = unknown (none)
Short Term Debt = 300.0m USD (from shortTermDebt, last fiscal year)
Debt = 1.87b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.83b USD (calculated: Debt 1.87b - CCE 40.5m)
Enterprise Value = 3.51b USD (1.68b + Debt 1.87b - CCE 40.5m)
Interest Coverage Ratio = 1.40 (Ebit TTM 157.7m / Interest Expense TTM 112.8m)
EV/FCF = 39.41x (Enterprise Value 3.51b / FCF TTM 89.1m)
FCF Yield = 2.54% (FCF TTM 89.1m / Enterprise Value 3.51b)
FCF Margin = 25.29% (FCF TTM 89.1m / Revenue TTM 352.4m)
Net Margin = 22.38% (Net Income TTM 78.9m / Revenue TTM 352.4m)
Gross Margin = 75.93% ((Revenue TTM 352.4m - Cost of Revenue TTM 84.8m) / Revenue TTM)
Gross Margin QoQ = 75.73% (prev 82.22%)
Tobins Q-Ratio = 1.01 (Enterprise Value 3.51b / Total Assets 3.48b)
Interest Expense / Debt = 6.03% (Interest Expense 112.8m / Debt 1.87b)
Taxrate = 7.49% (6.38m / 85.3m)
NOPAT = 145.9m (EBIT 157.7m * (1 - 7.49%))
Current Ratio = 3.43 (Total Current Assets 88.7m / Total Current Liabilities 25.9m)
Debt / Equity = 1.21 (Debt 1.87b / totalStockholderEquity, last quarter 1.55b)
Debt / EBITDA = 11.61 (Net Debt 1.83b / EBITDA 157.7m)
Debt / FCF = 20.55 (Net Debt 1.83b / FCF TTM 89.1m)
Total Stockholder Equity = 1.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.26% (Net Income 78.9m / Total Assets 3.48b)
RoE = 5.05% (Net Income TTM 78.9m / Total Stockholder Equity 1.56b)
RoCE = 4.56% (EBIT 157.7m / Capital Employed (Total Assets 3.48b - Current Liab 25.9m))
RoIC = 3.90% (NOPAT 145.9m / Invested Capital 3.74b)
WACC = 6.39% (E(1.68b)/V(3.55b) * Re(7.30%) + D(1.87b)/V(3.55b) * Rd(6.03%) * (1-Tc(0.07)))
Discount Rate = 7.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 96.38 | Cagr: 1.24%
[DCF] Terminal Value 73.10% ; FCFF base≈129.5m ; Y1≈113.6m ; Y5≈91.8m
[DCF] Fair Price = N/A (negative equity: EV 1.47b - Net Debt 1.83b = -358.1m; debt exceeds intrinsic value)
EPS Correlation: -72.55 | EPS CAGR: -6.01% | SUE: 0.18 | # QB: 0
Revenue Correlation: -82.86 | Revenue CAGR: -4.85% | SUE: -0.20 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.46 | Chg30d=+2.59% | Revisions=+25% | Analysts=11
EPS current Year (2026-12-31): EPS=1.74 | Chg30d=+0.33% | Revisions=+40% | GrowthEPS=-25.2% | GrowthRev=-12.7%
EPS next Year (2027-12-31): EPS=1.88 | Chg30d=+2.82% | Revisions=+17% | GrowthEPS=+7.9% | GrowthRev=+8.2%
[Analyst] Revisions Ratio: +44% (up=5, down=1)