Sixth Street Specialty Lending
Market Cap
US$1.6b
Last Updated
2021/03/02 23:10 UTC
Data Sources
Company Financials +
Executive Summary
Sixth Street Specialty Lending, Inc. is a business development company. More Details
Rewards
Snowflake Analysis
Similar Companies
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
| TSLX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.0% | -0.7% |
| 30 Day | 8.1% | 10.8% | 4.3% |
| 90 Day | 5.1% | 17.0% | 8.1% |
| 1 Year | 14.1%0.5% | 42.2%38.8% | 39.6%36.6% |
| 3 Year | 63.4%19.8% | 40.1%29.7% | 53.5%43.7% |
| 5 Year | 125.1%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
3 years ago | Simply Wall St
TPG Specialty Lending Inc (TSLX): Earnings To Drop In The Year Ahead, Is It A Long-Term Trend?4 years ago | Simply Wall St
Should You Expect TPG Specialty Lending Inc (TSLX) To Deliver A Superior ROE To Its Industry?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 7.25yrs | no data | 0.054% $ 844.1k | |
| President | 4.83yrs | no data | 0.021% $ 326.7k | |
| Chief Compliance Officer | 5.33yrs | no data | 0.0041% $ 64.6k | |
| VP, Controller & Principal Accounting Officer | no data | no data | no data | |
| Investor Relations Vice President | no data | no data | no data | |
| Vice President & Director | 1.5yrs | no data | 0.015% $ 242.9k | |
| VP & Director | 9.92yrs | no data | 0.051% $ 797.1k | |
| Vice President & Director | 2.17yrs | no data | no data | |
| 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 |
|---|---|---|---|---|
| Chairman of the Board & CEO | 7.25yrs | no data | 0.054% $ 844.1k | |
| Vice President & Director | 1.5yrs | no data | 0.015% $ 242.9k | |
| VP & Director | 9.92yrs | no data | 0.051% $ 797.1k | |
| Vice President & Director | 2.17yrs | no data | no data | |
| Independent Director | 2.17yrs | US$132.50k | 0.017% $ 275.6k | |
| Independent Director | 10yrs | US$146.50k | 0.043% $ 679.6k | |
| Independent Director | 10yrs | US$146.50k | 0.031% $ 482.2k | |
| Independent Director | 1.5yrs | US$33.25k | 0.010% $ 164.4k | |
| 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
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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TSLX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2014 |
| 1T6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 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
| 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.