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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Golub Capital BDC, Inc.

Cohen & Steers, Inc. (New York)

Sixth Street Specialty Lending, Inc.

StepStone Group, Inc.

Prospect Capital Corp.

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 3.74%, 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 hold?

Overall Portfolio exposure to Sixth Street Specialty Lending, Inc. 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 Sixth Street Specialty Lending, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sixth Street Specialty Lending, Inc.

3.53%

0.10

21.38%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.14%

EBIT Growth (5y)

13.84%

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

90.77%

Pledged Shares

Institutional Holding

56.05%

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

1.38

EV to EBIT

7.11

EV to EBITDA

7.11

EV to Capital Employed

1.39

EV to Sales

4.71

PEG Ratio

Dividend Yield

799.90%

ROCE (Latest)

19.52%

ROE (Latest)

10.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly 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

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 395.61

CASH AND EQV(HY)

Highest at USD 86.44 MM

DEBT-EQUITY RATIO (HY)

Lowest at 104.31 %

PRE-TAX PROFIT(Q)

Highest at USD 60.29 MM

NET PROFIT(Q)

Highest at USD 59 MM

EPS(Q)

Highest at USD 0.63

-11What is not working for the Company

ROCE(HY)

Lowest at 11.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.1 times

RAW MATERIAL COST(Y)

Grown by 18.18% (YoY

NET SALES(Q)

Lowest at USD 73.7 MM

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

Interest Coverage Ratio

Highest at 395.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at USD 60.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 86.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 104.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At USD 73.7 MM has Fallen at -35.67%

over average net sales of the previous four periods of USD 114.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 15.1 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

Lowest at USD 73.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Raw Material Cost

Grown by 18.18% (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