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
Name
Position
Tenure
Compensation
Ownership
Joshua Easterly
Chairman of the Board & CEO
7.25yrs
no data
0.054% $ 844.1k
Robert Stanley
President
4.83yrs
no data
0.021% $ 326.7k
Ian Simmonds
Chief Compliance Officer
5.33yrs
no data
0.0041% $ 64.6k
Michael Graf
VP, Controller & Principal Accounting Officer
no data
no data
no data
Lucy Lu
Investor Relations Vice President
no data
no data
no data
David Stiepleman
Vice President & Director
1.5yrs
no data
0.015% $ 242.9k
Michael Fishman
VP & Director
9.92yrs
no data
0.051% $ 797.1k
Jennifer Gordon
Vice President & Director
2.17yrs
no data
no data
Steven Pluss
Vice President
7.17yrs
no data
0.037% $ 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
Name
Position
Tenure
Compensation
Ownership
Joshua Easterly
Chairman of the Board & CEO
7.25yrs
no data
0.054% $ 844.1k
David Stiepleman
Vice President & Director
1.5yrs
no data
0.015% $ 242.9k
Michael Fishman
VP & Director
9.92yrs
no data
0.051% $ 797.1k
Jennifer Gordon
Vice President & Director
2.17yrs
no data
no data
Hurley H. Doddy
Independent Director
2.17yrs
US$132.50k
0.017% $ 275.6k
John Ross
Independent Director
10yrs
US$146.50k
0.043% $ 679.6k
Richard Higginbotham
Independent Director
10yrs
US$146.50k
0.031% $ 482.2k
Judy Slotkin
Independent Director
1.5yrs
US$33.25k
0.010% $ 164.4k
Ronald Tanemura
Independent Director
10yrs
US$136.50k
0.12% $ 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
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.
Data
Last Updated (UTC time)
Company Analysis
2021/03/02 23:10
End of Day Share Price
2021/03/02 00:00
Earnings
2020/12/31
Annual Earnings
2020/12/31
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.