Sixth Street Specialty Lending, Inc. (TSLX) 10-Year Financial Performance & Capital Metrics

TSLX • • Banking & Credit

Financial ServicesAsset ManagementBusiness Development Companies (BDCs)Middle Market Lenders

AboutSixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. It seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. The transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.Show more

Net Interest Income $346M +7.2%
Total Revenue $360M -2.7%
Net Income $187M -16.0%
Return on Equity 12.02% -23.2%
Net Interest Margin 9.65%
Efficiency Ratio 16.64% +24.1%
ROA 5.39% -25.0%
Equity / Assets 44.88% +0.3%
Book Value per Share 17.47 -0.6%
Tangible BV/Share 17.47 -0.6%
Debt/Equity 1.18 -0.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong NIM of 9.6%
✓Efficient operations: 16.6% efficiency ratio
✓Well capitalized: 44.9% equity/assets
✓Trading at only 1.3x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y12.81%

5Y10.29%

3Y10.55%

TTM-

Profit (Net Income) CAGR

10Y8.17%

5Y3.83%

3Y-4.14%

TTM2.58%

EPS CAGR

10Y1.91%

5Y-2.8%

3Y-10.06%

TTM-1.46%

ROCE

10Y Avg7.16%

5Y Avg7.04%

3Y Avg6.1%

Latest5.92%

Peer Comparison

Middle Market Lenders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
GSBDGoldman Sachs BDC, Inc.	1.08B	9.43	17.15	-57.7%	32.67%	9.15%	18.68%	1.23
CSWCCapital Southwest Corporation	1.36B	23.72	16.14	7.67%	43.07%	9.13%		1.08
HCXYHercules Capital, Inc.	2.36B	25.18	15.64	-9.71%	62.54%	14.13%		0.90
TRINITrinity Capital Inc. 7.875% Notes Due 2029	1.91B	25.41	12.10	29.68%	50.98%	15.22%	4.92%	1.08
HTGCHercules Capital, Inc.	3.45B	18.97	11.78	-12.79%	61.03%	14.17%		0.90
TSLXSixth Street Specialty Lending, Inc.	2.12B	22.40	11.03	-2.72%	51.86%	11.83%	8.85%	1.18
MAINMain Street Capital Corporation	5.75B	64.20	10.97	18.32%	70.11%	18.28%		0.76
GBDCGolub Capital BDC, Inc.	3.68B	13.95	9.82	80.52%	46.2%	9.4%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	148.7M	156.7M	177.12M	213.37M	197.07M	208.63M	226.25M	246.98M	322.38M	345.54M
NII Growth %	0.04%	0.05%	0.13%	0.2%	-0.08%	0.06%	0.08%	0.09%	0.31%	0.07%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	164.6M	177.79M	200.73M	249.93M	237.14M	245.68M	266.66M	297.64M	418.78M	452.31M
Interest Expense	15.9M	21.09M	23.61M	36.56M	40.06M	37.04M	40.41M	50.66M	96.39M	106.77M
Loan Loss Provision	0	0	0	0	0	0	0	0	0	0
Non-Interest Income+	-64.37M	-2.67M	-48.27M	-71.99M	-16.66M	-10.28M	-393K	-110.48M	-48.98M	-92.57M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	100.23M	175.13M	152.46M	177.94M	220.48M	235.39M	266.27M	187.16M	369.8M	359.74M
Revenue Growth %	-0.07%	0.75%	-0.13%	0.17%	0.24%	0.07%	0.13%	-0.3%	0.98%	-0.03%
Non-Interest Expense	19.26M	14.81M	14.41M	18.98M	22.08M	14.48M	11.79M	25.26M	49.57M	59.85M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	65.07M	139.23M	114.44M	122.39M	158.33M	183.87M	214.07M	111.24M	223.83M	193.12M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.25%	1.14%	-0.18%	0.07%	0.29%	0.16%	0.16%	-0.48%	1.01%	-0.14%
Pretax Income+	65.07M	139.23M	114.44M	122.39M	158.33M	183.87M	214.07M	111.24M	223.83M	193.12M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	1.5M	2.23M	2.83M	3.38M	3.75M	5.76M	2.29M	3.18M	1.81M	6.55M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	63.57M	137.01M	111.61M	119.02M	154.58M	178.11M	211.78M	108.05M	222.02M	186.57M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.25%	1.16%	-0.19%	0.07%	0.3%	0.15%	0.19%	-0.49%	1.05%	-0.16%
Net Income (Continuing)	63.57M	137.01M	111.61M	119.02M	154.58M	178.11M	211.78M	108.05M	222.02M	186.57M
EPS (Diluted)+	1.18	2.34	1.86	1.86	2.34	2.65	2.79	1.38	2.61	2.03
EPS Growth %	-0.3%	0.98%	-0.21%	0%	0.26%	0.13%	0.05%	-0.51%	0.89%	-0.22%
EPS (Basic)	1.18	2.34	1.86	1.86	2.34	2.65	2.93	1.38	2.61	2.03
Diluted Shares Outstanding	54.01M	58.59M	60M	65.41M	66.07M	67.21M	77.7M	78.2M	85.13M	92.04M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	2.43M	4.87M	3.52M	3.27M	4.83M	2.46M	1.57M	10.21M	1.22M	4.97M
Short Term Investments	0	0	0	0	0	0	0	0	0	0
Total Investments+	1.49B	1.66B	1.69B	1.71B	47.92M	36.68M	0	0	3.27B	3.51B
Investments Growth %	0.6%	0.12%	0.02%	0.01%	-0.97%	-0.23%	-1%	-	-	0.07%
Long-Term Investments	1.49B	1.66B	1.69B	1.71B	47.92M	36.68M	0	0	3.27B	3.51B
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	0	0	0	0	0	0	0	0	0	0
Other Assets	0	0	0	0	2.21B	2.27B	2.54B	2.8B	13.03M	12.93M
Total Current Assets	20.86M	18.13M	26.52M	24.36M	25.69M	28.91M	15.87M	33.59M	60.74M	63.81M
Total Non-Current Assets	1.49B	1.66B	1.69B	1.71B	2.26B	2.31B	2.54B	2.8B	3.28B	3.52B
Total Assets+	1.51B	1.68B	1.72B	1.73B	2.28B	2.34B	2.55B	2.84B	3.34B	3.58B
Asset Growth %	0.16%	0.11%	0.03%	0.01%	0.32%	0.03%	0.09%	0.11%	0.18%	0.07%
Return on Assets (ROA)	0.05%	0.09%	0.07%	0.07%	0.08%	0.08%	0.09%	0.04%	0.07%	0.05%
Accounts Payable	4.43M	0	0	0	25.93M	27.73M	30.93M	0	0	0
Total Debt+	642.42M	680.71M	703.43M	608.01M	1.09B	1.11B	1.19B	1.44B	1.78B	1.9B
Net Debt	639.99M	675.84M	699.91M	604.74M	1.09B	1.11B	1.18B	1.43B	1.78B	1.9B
Long-Term Debt	642.42M	680.71M	703.43M	494.4M	1.09B	1.11B	1.19B	1.44B	1.44B	1.9B
Short-Term Debt	0	0	0	113.61M	0	0	0	0	335.9M	0
Other Liabilities	5.91M	5.61M	10.29M	15.57M	41.24M	39.19M	59.12M	53.58M	30.46M	39.88M
Total Current Liabilities	37.5M	37M	37.24M	157.15M	25.93M	27.73M	30.93M	0	372.56M	33.67M
Total Non-Current Liabilities	648.33M	686.32M	713.72M	509.97M	1.14B	1.15B	1.25B	1.5B	1.47B	1.94B
Total Liabilities	685.83M	723.32M	750.95M	667.12M	1.16B	1.18B	1.28B	1.5B	1.85B	1.97B
Total Equity+	820.74M	952.21M	969.28M	1.06B	1.12B	1.16B	1.28B	1.34B	1.5B	1.61B
Equity Growth %	-0.02%	0.16%	0.02%	0.1%	0.05%	0.04%	0.1%	0.05%	0.12%	0.07%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.08%	0.15%	0.12%	0.12%	0.14%	0.16%	0.17%	0.08%	0.16%	0.12%
Book Value per Share	15.20	16.25	16.16	16.25	16.94	17.28	16.42	17.16	17.58	17.47
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	542K	598K	603K	655K	666K	680K	761K	821K	885K	943K
Additional Paid-in Capital	812.59M	898.87M	906.52M	991.92M	1.01B	1.03B	1.19B	1.29B	1.41B	1.52B
Retained Earnings	8.5M	2.54M	-4.99M	71.99M	110.72M	139.25M	90.1M	56.46M	100.78M	97.71M
Accumulated OCI	0	0	0	0	0	0	0	0	0	0
Treasury Stock	-30K	-1.36M	-1.36M	-1.36M	-1.36M	-4.29M	-4.29M	-10.46M	-10.46M	-10.46M
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	60.23M	83.33M	84.29M	133.42M	118.11M	135.97M	112.62M	71.83M	191.97M	187.25M
Operating CF Growth %	1.4%	0.38%	0.01%	0.58%	-0.11%	0.15%	-0.17%	-0.36%	1.67%	-0.02%
Net Income	63.57M	137.01M	111.61M	119.02M	154.58M	178.11M	211.78M	108.05M	222.02M	186.57M
Depreciation & Amortization	0	0	0	0	0	0	0	0	0	0
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	20.05M	-51.62M	-23.32M	458K	-44.47M	-59.8M	-101.9M	32.11M	-54.84M	-12.43M
Working Capital Changes	-23.39M	-2.06M	-3.99M	13.95M	7.99M	17.67M	2.75M	-68.33M	24.79M	13.11M
Cash from Investing+	-243.74M	-125.18M	-1.91M	-14.23M	-496.15M	9.1M	-110.17M	-296.37M	-428.76M	-232.74M
Purchase of Investments	-757.29M	-720.73M	-1.03B	-838.21M	-1.12B	-1.04B	-1.2B	-995.62M	-943.45M	-1.1B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	0	0	0	0	0	0	0	0
Other Investing	0	0	0	0	0	0	0	0	0	0
Cash from Financing+	183.52M	40.33M	-81.68M	-115.28M	381.61M	-145.94M	241K	234.21M	236.34M	47.62M
Dividends Paid	-78.06M	-80.29M	-94.69M	-95.91M	-98.06M	-130.45M	-221.94M	-144.73M	-156.42M	-168.72M
Share Repurchases	-29K	-1.33M	0	0	0	0	0	-6.17M	0	0
Stock Issued	2K	78.25M	0	71.81M	0	0	85.9M	0	89.2M	93.31M
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	-1000K	1000K	-1000K	1000K	1000K	1000K	1000K
Other Financing	0	0	0	0	0	-2.93M	0	0	0	0
Net Change in Cash+	-11.58M	2.62M	711K	3.91M	3.57M	-869K	2.69M	9.68M	-451K	2.13M
Exchange Rate Effect	-1000K	1000K	0	0	0	0	0	0	0	0
Cash at Beginning	2.41M	2.43M	5.95M	6.67M	10.57M	14.14M	13.27M	15.97M	25.65M	25.2M
Cash at End	3.33M	5.95M	6.67M	10.57M	14.14M	13.27M	15.97M	25.65M	25.2M	27.33M
Interest Paid	0	0	0	0	0	0	0	0	0	0
Income Taxes Paid	0	0	0	0	0	0	0	0	0	0
Free Cash Flow+	60.23M	83.33M	84.29M	133.42M	118.11M	135.97M	112.62M	71.83M	191.97M	187.25M
FCF Growth %	1.4%	0.38%	0.01%	0.58%	-0.11%	0.15%	-0.17%	-0.36%	1.67%	-0.02%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	7.68%	15.46%	11.62%	11.71%	14.17%	15.62%	17.38%	8.26%	15.65%	12.02%
Return on Assets (ROA)	4.52%	8.61%	6.57%	6.9%	7.71%	7.71%	8.66%	4.01%	7.18%	5.39%
Net Interest Margin	9.87%	9.35%	10.3%	12.33%	8.64%	8.92%	8.87%	8.71%	9.64%	9.65%
Efficiency Ratio	19.21%	8.45%	9.45%	10.67%	10.02%	6.15%	4.43%	13.49%	13.41%	16.64%
Equity / Assets	54.48%	56.83%	56.35%	61.45%	49.07%	49.66%	50%	47.29%	44.75%	44.88%
Book Value / Share	15.2	16.25	16.16	16.25	16.94	17.28	16.42	17.16	17.58	17.47
NII Growth	4.16%	5.38%	13.03%	20.46%	-7.64%	5.87%	8.45%	9.16%	30.53%	7.18%
Dividend Payout	122.8%	58.6%	84.85%	80.58%	63.44%	73.24%	40.53%	125.01%	61.73%	79.62%

Frequently Asked Questions

Valuation & Price

Sixth Street Specialty Lending, Inc. (TSLX) has a price-to-earnings (P/E) ratio of 11.0x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Sixth Street Specialty Lending, Inc. (TSLX) saw revenue decline by 2.7% over the past year.

Yes, Sixth Street Specialty Lending, Inc. (TSLX) is profitable, generating $191.5M in net income for fiscal year 2024 (51.9% net margin).

Dividend & Returns

Yes, Sixth Street Specialty Lending, Inc. (TSLX) pays a dividend with a yield of 7.21%. This makes it attractive for income-focused investors.

Sixth Street Specialty Lending, Inc. (TSLX) has a return on equity (ROE) of 12.0%. This is reasonable for most industries.

Industry Metrics

Sixth Street Specialty Lending, Inc. (TSLX) has a net interest margin (NIM) of 9.6%. This indicates healthy earnings from lending activities.

Sixth Street Specialty Lending, Inc. (TSLX) has an efficiency ratio of 16.6%. This is excellent, indicating strong cost control.

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