TSLX Stock Analysis: Sixth Street Specialty | NYSE
Asset Management | NYSE, USA | Market Cap: 1.718m USD | 12M Return: -11.6% | US83012A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.04M
EPS Trend: -56.3%
Qual. Beats: 0
Rev. Trend: 46.4%
Qual. Beats: 1
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: 43.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -3.75 > 1.0 |
| NWC/Revenue: 244.4% < 20% (prev -6.89%; Δ 251.3% < -1%) |
| CFO/TA 0.01 > 3% & CFO 45.1b > Net Income 43.0b |
| Net Debt (-192b) to EBITDA (42.2b): -4.54 < 3 |
| Current Ratio: 8.77k > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.0m) vs 12m ago 1.12% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 5.32% > 50% (prev 10.69%; Δ -5.37% > 0%) |
| Interest Coverage Ratio: 400.1 > 6 (EBIT TTM 42.2b / Interest Expense TTM 105.6m) |
| A: 0.07 (Total Current Assets 231b - Total Current Liabilities 26.3m) / Total Assets 3543b |
| B: 0.00 (Retained Earnings 81.6m / Total Assets 3543b) |
| C: 0.02 (EBIT TTM 42.2b / Avg Total Assets 1773b) |
| D: 0.78 (Book Value of Equity 1549b / Total Liabilities 1995b) |
| Altman-Z'' = 1.40 = BB |
As of August 09, 2026, the stock is trading at USD 19.10 with a total of 575,942 shares traded. Over the past week, the price has changed by +11.31%, over one month by +11.57%, over three months by +9.48% and over the past year by -11.59%.
Current recommended Stop Loss: 18.20 (which is 4.7% or 1.7 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 | 19.7 | 3.1% |
P/E Trailing = 15.5862
P/E Forward = 12.6582
P/S = 4.0318
P/B = 1.057
P/EG = 1.2751
Revenue TTM = 94.3b USD
EBIT TTM = 42.2b USD
EBITDA TTM = 42.2b USD
Long Term Debt = unknown (none)
Short Term Debt = 300.0m USD (from shortTermDebt, last fiscal year)
Debt = 1.74b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -192b USD (calculated: Debt 1.74b - CCE 194b)
Enterprise Value = 1.72b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 400.1 (Ebit TTM 42.2b / Interest Expense TTM 105.6m)
EV/FCF = 0.04x (Enterprise Value 1.72b / FCF TTM 45.1b)
FCF Yield = 2.63k% (FCF TTM 45.1b / Enterprise Value 1.72b)
FCF Margin = 47.83% (FCF TTM 45.1b / Revenue TTM 94.3b)
Net Margin = 45.55% (Net Income TTM 43.0b / Revenue TTM 94.3b)
Gross Margin = unknown ((Revenue TTM 94.3b - Cost of Revenue TTM 97.8m) / Revenue TTM)
Tobins Q-Ratio = 0.00 (Enterprise Value 1.72b / Total Assets 3543b)
Interest Expense / Debt = 6.06% (Interest Expense 105.6m / Debt 1.74b)
Taxrate = 3.26% (5.74m / 176.3m)
NOPAT = 40.9b (EBIT 42.2b * (1 - 3.26%))
Current Ratio = 8.77k (out of range, set to none) (Total Current Assets 231b / Total Current Liabilities 26.3m)
Debt / Equity = 0.00 (Debt 1.74b / totalStockholderEquity, last quarter 1549b)
Debt / EBITDA = -4.54 (Net Debt -192b / EBITDA 42.2b)
Debt / FCF = -4.25 (Net Debt -192b / FCF TTM 45.1b)
Total Stockholder Equity = 774b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.42% (Net Income 43.0b / Total Assets 3543b)
RoE = 5.55% (Net Income TTM 43.0b / Total Stockholder Equity 774b)
RoCE = 1.19% (EBIT 42.2b / Capital Employed (Total Assets 3543b - Current Liab 26.3m))
RoIC = 1.15% (NOPAT 40.9b / Invested Capital 3539b)
WACC = 6.80% (E(1.72b)/V(3.46b) * Re(7.76%) + D(1.74b)/V(3.46b) * Rd(6.06%) * (1-Tc(0.03)))
Discount Rate = 7.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.53 | Cagr: 2.94%
[DCF] Terminal Value 77.97% ; FCFF base≈27.1b ; Y1≈31.1b ; Y5≈45.8b
[DCF] Fair Price = 9.27k (EV 689b - Net Debt -192b = Equity 881b / Shares 95.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -56.34 | EPS CAGR: -3.37% | SUE: 0.35 | # QB: 0
Revenue Correlation: 46.43 | Revenue CAGR: 128.3% | SUE: 4.0 | # QB: 1
EPS current Quarter (2026-09-30): EPS=0.43 | Chg30d=+0.26% | Revisions=+25% | Analysts=11
EPS current Year (2026-12-31): EPS=1.72 | Chg30d=+0.21% | Revisions=+25% | GrowthEPS=-26.2% | GrowthRev=-15.5%
EPS next Year (2027-12-31): EPS=1.81 | Chg30d=-0.15% | Revisions=+25% | GrowthEPS=+5.4% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: +50% (up=3, down=0)