Sixth Street Specialty Lending, Inc.
Sixth Street Specialty Lending, Inc. Fundamental Analysis
Sixth Street Specialty Lending, Inc. (TSLX) shows moderate financial fundamentals with a PE ratio of 15.11, profit margin of 31.80%, and ROE of 0.03%. The company generates $0.3B in annual revenue with weak year-over-year growth of 0.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TSLX's fundamental strength across five key dimensions:
Efficiency Score
WeakTSLX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTSLX trades at attractive valuation levels.
Growth Score
WeakTSLX faces weak or negative growth trends.
Financial Health Score
ModerateTSLX shows balanced financial health with some risks.
Profitability Score
ModerateTSLX maintains healthy but balanced margins.
Key Financial Metrics
Is TSLX Expensive or Cheap?
P/E Ratio
TSLX trades at 15.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TSLX's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values Sixth Street Specialty Lending, Inc. at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 149.42 times EBITDA. This signals the market has high growth expectations.
How Well Does TSLX Make Money?
Net Profit Margin
For every $100 in sales, Sixth Street Specialty Lending, Inc. keeps $31.80 as profit after all expenses.
Operating Margin
Core operations generate 43.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.03 in profit for every $100 of shareholder equity.
ROA
Sixth Street Specialty Lending, Inc. generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sixth Street Specialty Lending, Inc. generates strong operating cash flow of $144.57M, reflecting robust business health.
Free Cash Flow
Sixth Street Specialty Lending, Inc. generates strong free cash flow of $144.57M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.52 in free cash annually.
FCF Yield
TSLX converts 8.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.001
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.00
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How TSLX Stacks Against Its Sector Peers
| Metric | TSLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.11 | 18.96 | Better (Cheaper) |
| ROE | 0.03% | 797.00% | Weak |
| Net Margin | 31.80% | -7699.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 560.28 | Weak Liquidity |
| ROA | 0.00% | -23967.00% (disorted) | Weak |
TSLX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sixth Street Specialty Lending, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.60%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-32.06%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-5.90%
Industry Style: Value, Dividend, Cyclical
Declining