TSLX Stock Analysis: Sixth Street Specialty | NYSE
Asset Management | NYSE, USA | Market Cap: 1.624m USD | 12M Return: -12.7% | US83012A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.87M
EPS Trend: -56.3%
Qual. Beats: 0
Rev. Trend: -62.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 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, 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: 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 October 18, 2026, the stock is trading at USD 17.03 with a total of 882,704 shares traded. Over the past week, the price has changed by -1.84%, over one month by -6.38%, over three months by -0.05% and over the past year by -12.71%.
Current recommended Stop Loss: 16.40 (which is 3.7% 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 | 19.8 | 16.1% |
P/E Trailing = 18.3118
P/E Forward = 10.2249
P/S = 3.9706
P/B = 1.1236
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 = 3.36b USD (1.62b + Debt 1.92b - CCE 193.6m)
Interest Coverage Ratio = 1.33 (Ebit TTM 140.8m / Interest Expense TTM 106.2m)
EV/FCF = 21.53x (Enterprise Value 3.36b / FCF TTM 155.8m)
FCF Yield = 4.64% (FCF TTM 155.8m / Enterprise Value 3.36b)
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 = 0.95 (Enterprise Value 3.36b / 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 = 6.15% (E(1.62b)/V(3.55b) * Re(7.31%) + D(1.92b)/V(3.55b) * Rd(5.52%) * (1-Tc(0.06)))
Discount Rate = 7.31% (= 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=+0.23% | Revisions=+50% | Analysts=11
EPS current Year (2026-12-31): EPS=1.74 | Chg30d=+0.05% | Revisions=+55% | GrowthEPS=-25.4% | GrowthRev=-13.5%
EPS next Year (2027-12-31): EPS=1.83 | Chg30d=+0.00% | Revisions=+58% | GrowthEPS=+5.2% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +67% (up=21, down=3)