(TSLX) Sixth Street Specialty - Ratings and Ratios
Senior Loans, Mezzanine Debt, Equity, Structured Products, Bonds
TSLX EPS (Earnings per Share)
TSLX Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 19.1% |
| Value at Risk 5%th | 31.4% |
| Relative Tail Risk | -0.34% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.55 |
| Alpha | 4.26 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.563 |
| Beta | 0.587 |
| Beta Downside | 0.720 |
| Drawdowns 3y | |
|---|---|
| Max DD | 16.76% |
| Mean DD | 3.14% |
| Median DD | 2.55% |
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.
TSLX Stock Overview
| Market Cap in USD | 2,002m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2014-03-21 |
| Return 12m vs S&P 500 | 0.20% |
| Analyst Rating | 4.36 of 5 |
TSLX Dividends
| Dividend Yield | 9.75% |
| Yield on Cost 5y | 18.63% |
| Yield CAGR 5y | 2.61% |
| Payout Consistency | 95.5% |
| Payout Ratio | 42.9% |
TSLX Growth Ratios
| CAGR 3y | 16.39% |
| CAGR/Max DD Calmar Ratio | 0.98 |
| CAGR/Mean DD Pain Ratio | 5.22 |
| Current Volume | 335.7k |
| Average Volume | 460.2k |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (51.60b TTM) > 0 and > 6% of Revenue (6% = 6.42b TTM) |
| FCFTA 93.34 (>2.0%) and ΔFCFTA 9328 pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 0.10% (prev 17.0k%; Δ -17.0kpp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 93.34 (>3.0%) and CFO 327.55b > Net Income 51.60b (YES >=105%, WARN >=100%) |
| Net Debt (1.75b) to EBITDA (178.4m) ratio: 9.81 <= 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 99.92% (prev 73.39%; Δ 26.53pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 3042 % (prev 10.69%; Δ 3031 pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.71 (EBITDA TTM 178.4m / Interest Expense TTM 82.2m) >= 6 (WARN >= 3) |
Altman Z'' 0.60
| (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) 0.04 = EBIT TTM 140.9m / Avg Total Assets 3.52b |
| (D) 0.05 = Book Value of Equity 92.7m / Total Liabilities 1.89b |
| Total Rating: 0.60 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 51.70
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield data missing |
| 3. FCF Margin data missing |
| 4. Debt/Equity 1.13 = 1.89 |
| 5. Debt/Ebitda 9.81 = -2.50 |
| 6. ROIC - WACC (= -0.90)% = -1.12 |
| 7. RoE data missing |
| 8. Rev. Trend 49.33% = 3.70 |
| 9. EPS Trend -35.49% = -1.77 |
What is the price of TSLX shares?
Over the past week, the price has changed by +0.19%, over one month by -3.02%, over three months by -10.50% and over the past year by +14.85%.
Is Sixth Street Specialty a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of TSLX is around 22.92 USD . This means that TSLX is currently overvalued and has a potential downside of 7.96%.
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 | 24 | 13% |
| Analysts Target Price | 24 | 13% |
| ValueRay Target Price | 24.7 | 16.5% |
TSLX Fundamental Data Overview November 11, 2025
P/E Trailing = 10.3366
P/E Forward = 11.2867
P/S = 4.3106
P/B = 1.3114
P/EG = 1.2745
Beta = 0.703
Revenue TTM = 107.05b USD
EBIT TTM = 140.9m USD
EBITDA TTM = 178.4m 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 = 3.75b USD (2.00b + Debt 1.83b - CCE 83.2m)
Interest Coverage Ratio = 1.71 (Ebit TTM 140.9m / Interest Expense TTM 82.2m)
FCF Yield = 8727 % (FCF TTM 327.55b / Enterprise Value 3.75b)
FCF Margin = 306.0% (FCF TTM 327.55b / Revenue TTM 107.05b)
Net Margin = 48.20% (Net Income TTM 51.60b / Revenue TTM 107.05b)
Gross Margin = 99.92% ((Revenue TTM 107.05b - Cost of Revenue TTM 81.1m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 77.42%)
Tobins Q-Ratio = 1.07 (Enterprise Value 3.75b / Total Assets 3.51b)
Interest Expense / Debt = 1.44% (Interest Expense 26.5m / Debt 1.83b)
Taxrate = 1.16% (605.0m / 52.05b)
NOPAT = 139.3m (EBIT 140.9m * (1 - 1.16%))
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 = 9.81 (Net Debt 1.75b / EBITDA 178.4m)
Debt / FCF = 0.01 (Net Debt 1.75b / FCF TTM 327.55b)
Total Stockholder Equity = 1.61b (last 4 quarters mean from totalStockholderEquity)
RoA = 1470 % (out of range, set to none)
RoE = 3202 % (out of range, set to none) (Net Income TTM 51.60b / Total Stockholder Equity 1.61b)
RoCE = 4.05% (EBIT 140.9m / Capital Employed (Total Assets 3.51b - Current Liab 28.1m))
RoIC = 4.06% (NOPAT 139.3m / Invested Capital 3.43b)
WACC = 4.95% (E(2.00b)/V(3.84b) * Re(8.18%) + D(1.83b)/V(3.84b) * Rd(1.44%) * (1-Tc(0.01)))
Discount Rate = 8.18% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.59%
[DCF Debug] Terminal Value 69.86% ; FCFE base≈196.61b ; Y1≈129.08b ; Y5≈59.03b
Fair Price DCF = 12.0k (DCF Value 1133.99b / Shares Outstanding 94.5m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -35.49 | EPS CAGR: -6.63% | SUE: 0.37 | # QB: 0
Revenue Correlation: 49.33 | Revenue CAGR: 1310 % | SUE: 4.0 | # QB: 1
Additional Sources for TSLX Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle