Oaktree Specialty Lending Corporation
Oaktree Specialty Lending Corporation Fundamental Analysis
Oaktree Specialty Lending Corporation (OCSL) shows moderate financial fundamentals with a PE ratio of 21.08, profit margin of 17.43%, and ROE of 3.45%. The company generates $0.3B in annual revenue with strong year-over-year growth of 60.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OCSL's fundamental strength across five key dimensions:
Efficiency Score
WeakOCSL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOCSL trades at attractive valuation levels.
Growth Score
ModerateOCSL shows steady but slowing expansion.
Financial Health Score
WeakOCSL carries high financial risk with limited liquidity.
Profitability Score
ModerateOCSL maintains healthy but balanced margins.
Key Financial Metrics
Is OCSL Expensive or Cheap?
P/E Ratio
OCSL trades at 21.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OCSL's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Oaktree Specialty Lending Corporation at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.98 times EBITDA. This is generally considered low.
How Well Does OCSL Make Money?
Net Profit Margin
For every $100 in sales, Oaktree Specialty Lending Corporation keeps $17.43 as profit after all expenses.
Operating Margin
Core operations generate 45.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.45 in profit for every $100 of shareholder equity.
ROA
Oaktree Specialty Lending Corporation generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oaktree Specialty Lending Corporation generates limited operating cash flow of $12.52M, signaling weaker underlying cash strength.
Free Cash Flow
Oaktree Specialty Lending Corporation produces free cash flow of $12.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
OCSL converts 1.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How OCSL Stacks Against Its Sector Peers
| Metric | OCSL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.08 | 18.88 | Worse (Expensive) |
| ROE | 3.45% | 801.00% | Weak |
| Net Margin | 17.43% | 2213.00% | Weak |
| Debt/Equity | 1.07 | 1.03 | Neutral |
| Current Ratio | 0.25 | 615.97 | Weak Liquidity |
| ROA | 1.72% | -19854.00% (disorted) | Weak |
OCSL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oaktree Specialty Lending Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
108.13%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-52.80%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
150.84%
Industry Style: Value, Dividend, Cyclical
High Growth