Sixth Street Specialty Lending, Inc. (TSLX) 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

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Sixth Street Specialty Lending, Inc.

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Why is Sixth Street Specialty Lending, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.61%

Flat results in Jun 25

ROCE(HY) Lowest at 11.66%
DEBTORS TURNOVER RATIO(HY) Lowest at 15.1 times
RAW MATERIAL COST(Y) Grown by 18.18% (YoY)

With ROE of 10.99%, it has a very attractive valuation with a 1.38 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 5.56%, its profits have fallen by -18.7%
At the current price, the company has a high dividend yield of 799.9

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sixth Street Specialty Lending, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sixth Street Specialty Lending, Inc.

-20.19%

0.18

21.42%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.62%

EBIT Growth (5y)

5.40%

EBIT to Interest (avg)

4.43

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

3.85%

Dividend Payout Ratio

101.54%

Pledged Shares

Institutional Holding

60.14%

ROCE (avg)

20.65%

ROE (avg)

14.61%

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

1.04

EV to EBIT

5.09

EV to EBITDA

5.09

EV to Capital Employed

1.04

EV to Sales

4.31

PEG Ratio

Dividend Yield

11.10%

ROCE (Latest)

20.52%

ROE (Latest)

10.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 145.39%

CASH AND EQV(HY)

Highest at USD 102.82 MM

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 180.28 MM

ROCE(HY)

Lowest at 10.61%

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.92 times

RAW MATERIAL COST(Y)

Grown by 5.08% (YoY

NET SALES(Q)

At USD 92.19 MM has Fallen at -11.24%

PRE-TAX PROFIT(Q)

Lowest at USD 31.35 MM

NET PROFIT(Q)

Lowest at USD 29.96 MM

EPS(Q)

Lowest at USD 0.32

Here's what is working for Sixth Street Specialty Lending, Inc.

Cash and Eqv

Highest at USD 102.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 145.39%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Sixth Street Specialty Lending, Inc.

Operating Cash Flow

Lowest at USD 180.28 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 31.35 MM has Fallen at -36.73%

over average net sales of the previous four periods of USD 49.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 29.96 MM has Fallen at -37.44%

over average net sales of the previous four periods of USD 47.89 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 11.92 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

At USD 92.19 MM has Fallen at -11.24%

over average net sales of the previous four periods of USD 103.86 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 31.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 29.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.32

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 5.08% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales