Oaktree Specialty Lending Corp. (OCSL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TPG, Inc.

Victory Capital Holdings, Inc.

Federated Hermes, Inc.

Hercules Capital, Inc.

Artisan Partners Asset Management, Inc.

Oaktree Specialty Lending Corp.

Golub Capital BDC, Inc.

Goldman Sachs BDC, Inc.

Sixth Street Specialty Lending, Inc.

StepStone Group, Inc.

Prospect Capital Corp.

Why is Oaktree Specialty Lending Corp. ?

Strong Long Term Fundamental Strength with a 4.75% CAGR growth in Operating Profits

Healthy long term growth as Net Sales has grown by an annual rate of 16.76% and Operating profit at 4.75%

The company has declared Negative results for the last 5 consecutive quarters

ROCE(HY) Lowest at 2.24%
PRE-TAX PROFIT(Q) At USD 5.64 MM has Fallen at -35.82%
NET PROFIT(Q) At USD 5.61 MM has Fallen at -33.87%

With ROE of 2.25%, it has a very attractive valuation with a 0.66 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.53%, its profits have fallen by -40.9%
At the current price, the company has a high dividend yield of 1696.5

High Institutional Holdings at 49.7%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.53% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Oaktree Specialty Lending Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Oaktree Specialty Lending Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Oaktree Specialty Lending Corp.

-27.51%

-1.60

26.92%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.76%

EBIT Growth (5y)

4.75%

EBIT to Interest (avg)

4.71

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

2.24%

Dividend Payout Ratio

444.05%

Pledged Shares

Institutional Holding

49.70%

ROCE (avg)

15.26%

ROE (avg)

9.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.66

EV to EBIT

5.99

EV to EBITDA

5.99

EV to Capital Employed

0.64

EV to Sales

2.83

PEG Ratio

Dividend Yield

1696.54%

ROCE (Latest)

10.71%

ROE (Latest)

2.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 190.59 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 627.94%

NET SALES(HY)

At USD 160.69 MM has Grown at 43.25%

RAW MATERIAL COST(Y)

Fallen by -1.57% (YoY

NET PROFIT(9M)

Higher at USD 68.54 MM

-10What is not working for the Company

ROCE(HY)

Lowest at 2.24%

PRE-TAX PROFIT(Q)

At USD 5.64 MM has Fallen at -35.82%

NET PROFIT(Q)

At USD 5.61 MM has Fallen at -33.87%

DEBT-EQUITY RATIO (HY)

Highest at 106.48 %

DIVIDEND PER SHARE(HY)

Lowest at USD 4.02

Here's what is working for Oaktree Specialty Lending Corp.

Net Sales

At USD 160.69 MM has Grown at 43.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 190.59 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 627.94% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Oaktree Specialty Lending Corp.

Pre-Tax Profit

At USD 5.64 MM has Fallen at -35.82%

over average net sales of the previous four periods of USD 8.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 5.61 MM has Fallen at -33.87%

over average net sales of the previous four periods of USD 8.48 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 106.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at USD 4.02

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)