TSLX Stock Analysis: Sixth Street Specialty | NYSE
Asset Management | NYSE, USA | Market Cap: 1.584m USD | 12M Return: -22.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 12.3M
EPS Trend: -7.2%
Qual. Beats: -1
Rev. Trend: 0.3%
Qual. Beats: -2
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 107.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -5.67 > 1.0 |
| NWC/Revenue: 18.8k% < 20% (prev -4.16%; Δ 18.8k% < -1%) |
| CFO/TA 0.00 > 3% & CFO 144.1m > Net Income 107.5m |
| Current Ratio: 2.42k > 1.5 & < 3 |
| Outstanding Shares: last quarter (94.7m) vs 12m ago 1.11% < -2% |
| Gross Margin: 72.98% > 18% (prev 68.89%; Δ 4.09% > 0.5%) |
| Asset Turnover: 0.02% > 50% (prev 9.83%; Δ -9.81% > 0%) |
| Interest Coverage Ratio: 1.41 > 6 (EBIT TTM 147.9m / Interest Expense TTM 104.9m) |
| A: 0.02 (Total Current Assets 63.7b - Total Current Liabilities 26.3m) / Total Assets 3393b |
| B: 0.00 (Retained Earnings 11.1m / Total Assets 3393b) |
| C: 0.00 (EBIT TTM 147.9m / Avg Total Assets 1698b) |
| D: 0.83 (Book Value of Equity 1543b / Total Liabilities 1850b) |
| Altman-Z'' = 1.00 = BB |
As of July 12, 2026, the stock is trading at USD 17.19 with a total of 393,682 shares traded. Over the past week, the price has changed by -0.58%, over one month by +2.49%, over three months by -2.39% and over the past year by -22.20%.
Current recommended Stop Loss: 16.60 (which is 3.4% or 1.4 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 | 14.6% |
P/E Trailing = 14.6228
P/E Forward = 12.3001
P/S = 3.7174
P/B = 1.0268
P/EG = 1.2751
Revenue TTM = 338.2m USD
EBIT TTM = 147.9m USD
EBITDA TTM = 147.9m USD
Long Term Debt = 1.80b USD (estimated: total debt 1.80b - short term 300k)
Short Term Debt = 300k USD (from shortTermDebt, last quarter)
Debt = 1.80b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -27.4b USD (calculated: Debt 1.80b - CCE 29.2b)
Enterprise Value = 1.58b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 1.41 (Ebit TTM 147.9m / Interest Expense TTM 104.9m)
EV/FCF = 10.99x (Enterprise Value 1.58b / FCF TTM 144.1m)
FCF Yield = 9.10% (FCF TTM 144.1m / Enterprise Value 1.58b)
FCF Margin = 42.61% (FCF TTM 144.1m / Revenue TTM 338.2m)
Net Margin = 31.80% (Net Income TTM 107.5m / Revenue TTM 338.2m)
Gross Margin = 72.98% ((Revenue TTM 338.2m - Cost of Revenue TTM 91.4m) / Revenue TTM)
Gross Margin QoQ = 60.42% (prev 76.83%)
Tobins Q-Ratio = 0.00 (Enterprise Value 1.58b / Total Assets 3393b)
Interest Expense / Debt = 5.81% (Interest Expense 104.9m / Debt 1.80b)
Taxrate = 4.94% (5.59m / 113.1m)
NOPAT = 140.6m (EBIT 147.9m * (1 - 4.94%))
Current Ratio = 2.42k (out of range, set to none) (Total Current Assets 63.7b / Total Current Liabilities 26.3m)
Debt / Equity = 0.00 (Debt 1.80b / totalStockholderEquity, last quarter 1543b)
Debt / EBITDA = -185.1 (out of range, set to none) (Net Debt -27.4b / EBITDA 147.9m)
Debt / FCF = -190.0 (out of range, set to none) (Net Debt -27.4b / FCF TTM 144.1m)
Total Stockholder Equity = 387b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.01% (Net Income 107.5m / Total Assets 3393b)
RoE = 0.03% (Net Income TTM 107.5m / Total Stockholder Equity 387b)
RoCE = 0.04% (EBIT 147.9m / Capital Employed (Equity 387b + L.T.Debt 1.80b))
RoIC = 0.00% (NOPAT 140.6m / Invested Capital 3393b)
WACC = 6.59% (E(1.58b)/V(3.39b) * Re(7.80%) + D(1.80b)/V(3.39b) * Rd(5.81%) * (1-Tc(0.05)))
Discount Rate = 7.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 3.41%
[DCF] Terminal Value 73.10% ; FCFF base≈165.9m ; Y1≈145.5m ; Y5≈117.5m
[DCF] Fair Price = 308.0 (EV 1.89b - Net Debt -27.4b = Equity 29.3b / Shares 95.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -7.18 | EPS CAGR: -0.28% | SUE: -1.94 | # QB: -1
Revenue Correlation: 0.34 | Revenue CAGR: 0.03% | SUE: -1.33 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.42 | Chg30d=+0.00% | Revisions=-73% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.43 | Chg30d=+0.05% | Revisions=-73% | Analysts=10
EPS current Year (2026-12-31): EPS=1.72 | Chg30d=+0.03% | Revisions=-75% | GrowthEPS=-26.3% | GrowthRev=-14.5%
EPS next Year (2027-12-31): EPS=1.82 | Chg30d=+0.15% | Revisions=-73% | GrowthEPS=+5.9% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: -92% (up=0, down=33)