NYSE:TSLX

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Executive Summary

Sixth Street Specialty Lending, Inc. is a business development company. More Details

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Snowflake Analysis


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Share Price & News

How has Sixth Street Specialty Lending's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSLX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TSLX's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

TSLX

1.0%

US Capital Markets

-0.7%

US Market


1 Year Return

0.5%

TSLX

38.8%

US Capital Markets

36.6%

US Market

Return vs Industry: TSLX underperformed the US Capital Markets industry which returned 36.1% over the past year.

Return vs Market: TSLX underperformed the US Market which returned 41.9% over the past year.


Shareholder returns

TSLXIndustryMarket
7 Day1.9%1.0%-0.7%
30 Day8.1%10.8%4.3%
90 Day5.1%17.0%8.1%
1 Year14.1%0.5%42.2%38.8%39.6%36.6%
3 Year63.4%19.8%40.1%29.7%53.5%43.7%
5 Year125.1%38.2%152.2%121.0%123.7%98.8%

Long-Term Price Volatility Vs. Market

How volatile is Sixth Street Specialty Lending's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sixth Street Specialty Lending undervalued compared to its fair value and its price relative to the market?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSLX ($22.11) is trading below our estimate of fair value ($28.83)

Significantly Below Fair Value: TSLX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TSLX is good value based on its PE Ratio (8.3x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: TSLX is good value based on its PE Ratio (8.3x) compared to the US market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: TSLX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TSLX is good value based on its PB Ratio (1.3x) compared to the US Capital Markets industry average (14.4x).

Future Growth

How is Sixth Street Specialty Lending forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSLX's earnings are forecast to decline over the next 3 years (-10.5% per year).

Earnings vs Market: TSLX's earnings are forecast to decline over the next 3 years (-10.5% per year).

High Growth Earnings: TSLX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TSLX's revenue (0.5% per year) is forecast to grow slower than the US market (10.7% per year).

High Growth Revenue: TSLX's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSLX's Return on Equity is forecast to be low in 3 years time (12.3%).

Past Performance

How has Sixth Street Specialty Lending performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSLX has high quality earnings.

Growing Profit Margin: TSLX's current net profit margins (66%) are higher than last year (61%).


Past Earnings Growth Analysis

Earnings Trend: TSLX's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: TSLX's earnings growth over the past year (16%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: TSLX earnings growth over the past year (16%) exceeded the Capital Markets industry 10.5%.


Return on Equity

High ROE: TSLX's Return on Equity (15.3%) is considered low.

Financial Health

How is Sixth Street Specialty Lending's financial position?


Financial Position Analysis

Short Term Liabilities: TSLX's short term assets ($39.7M) do not cover its short term liabilities ($47.5M).

Long Term Liabilities: TSLX's short term assets ($39.7M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: TSLX's debt to equity ratio (95.6%) is considered high.

Reducing Debt: TSLX's debt to equity ratio has increased from 78.1% to 95.6% over the past 5 years.

Debt Coverage: TSLX's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: TSLX's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Dividend

What is Sixth Street Specialty Lending current dividend yield, its reliability and sustainability?

13.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TSLX's dividend (13.52%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: TSLX's dividend (13.52%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

Stable Dividend: TSLX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TSLX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.9%), TSLX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSLX's dividends in 3 years are forecast to be covered by earnings (87.7% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Josh Easterly (44 yo)

7.25yrs

Tenure

Mr. Joshua Easterly has been Chief Executive Officer of TPG Specialty Lending, Inc. since January 2018. He serves as the Co-Chief Investment Officer at Sixth Street Specialty Lending Advisers, LLC (formerl...


Leadership Team

NamePositionTenureCompensationOwnership
Joshua Easterly
Chairman of the Board & CEO7.25yrsno data0.054%
$ 844.1k
Robert Stanley
President4.83yrsno data0.021%
$ 326.7k
Ian Simmonds
Chief Compliance Officer5.33yrsno data0.0041%
$ 64.6k
Michael Graf
VP, Controller & Principal Accounting Officerno datano datano data
Lucy Lu
Investor Relations Vice Presidentno datano datano data
David Stiepleman
Vice President & Director1.5yrsno data0.015%
$ 242.9k
Michael Fishman
VP & Director9.92yrsno data0.051%
$ 797.1k
Jennifer Gordon
Vice President & Director2.17yrsno datano data
Steven Pluss
Vice President7.17yrsno data0.037%
$ 580.9k

6.3yrs

Average Tenure

46yo

Average Age

Experienced Management: TSLX's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joshua Easterly
Chairman of the Board & CEO7.25yrsno data0.054%
$ 844.1k
David Stiepleman
Vice President & Director1.5yrsno data0.015%
$ 242.9k
Michael Fishman
VP & Director9.92yrsno data0.051%
$ 797.1k
Jennifer Gordon
Vice President & Director2.17yrsno datano data
Hurley H. Doddy
Independent Director2.17yrsUS$132.50k0.017%
$ 275.6k
John Ross
Independent Director10yrsUS$146.50k0.043%
$ 679.6k
Richard Higginbotham
Independent Director10yrsUS$146.50k0.031%
$ 482.2k
Judy Slotkin
Independent Director1.5yrsUS$33.25k0.010%
$ 164.4k
Ronald Tanemura
Independent Director10yrsUS$136.50k0.12%
$ 1.9m

9.9yrs

Average Tenure

57yo

Average Age

Experienced Board: TSLX's board of directors are considered experienced (9.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TSLX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Top Shareholders

Company Information

Sixth Street Specialty Lending, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sixth Street Specialty Lending, Inc.
  • Ticker: TSLX
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.576b
  • Shares outstanding: 71.90m
  • Website: https://www.sixthstreetspecialtylending.com

Location

  • Sixth Street Specialty Lending, Inc.
  • 345 California Street
  • Suite 3300
  • San Francisco
  • California
  • 94104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSLXNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2014
1T6DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2014

Biography

Sixth Street Specialty Lending, Inc. is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), mezzanine debt, non-control structured equity, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 23:10
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.