Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Valuation
- Analyst Ratings
Upturn AI SWOT - About
TSLX 
Sixth Street Specialty Lending Inc (TSLX)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
04/01/2025: TSLX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -2.6% | Avg. Invested days 41 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.10B USD | Price to earnings Ratio 11.05 | 1Y Target Price 23.4 |
Price to earnings Ratio 11.05 | 1Y Target Price 23.4 | ||
Volume (30-day avg) 504079 | Beta 1.1 | 52 Weeks Range 18.13 - 23.17 | Updated Date 04/2/2025 |
52 Weeks Range 18.13 - 23.17 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 9.27% | Basic EPS (TTM) 2.03 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 38.66% | Operating Margin (TTM) 77.72% |
Management Effectiveness
Return on Assets (TTM) 6.82% | Return on Equity (TTM) 12.02% |
Valuation
Trailing PE 11.05 | Forward PE 10.46 | Enterprise Value 3997001984 | Price to Sales(TTM) 4.35 |
Enterprise Value 3997001984 | Price to Sales(TTM) 4.35 | ||
Enterprise Value to Revenue 15.82 | Enterprise Value to EBITDA - | Shares Outstanding 93661400 | Shares Floating - |
Shares Outstanding 93661400 | Shares Floating - | ||
Percent Insiders 0.42 | Percent Institutions 50.68 |
Analyst Ratings
Rating 4.36 | Target Price 22.27 | Buy 5 | Strong Buy 5 |
Buy 5 | Strong Buy 5 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Sixth Street Specialty Lending Inc
Company Overview
History and Background
Sixth Street Specialty Lending, Inc. (TSLX) was founded in 2011. It is a specialty finance company focused on lending to middle-market companies. It has grown through strategic investments and disciplined credit underwriting.
Core Business Areas
- Direct Lending: Providing senior secured loans, mezzanine debt, and equity co-investments to middle-market companies.
- Opportunistic Credit: Investing in distressed debt and other special situations.
Leadership and Structure
TSLX is externally managed by Sixth Street Advisor, LLC, a subsidiary of Sixth Street Partners. The leadership team is comprised of seasoned investment professionals with experience in credit and private equity.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: These are first-lien loans secured by the assets of the borrower. These are the primary driver of TSLX's revenue. Market share data is not readily available due to the fragmented nature of the middle-market lending industry. Competitors include other BDCs like Ares Capital and Main Street Capital.
- Mezzanine Debt: These are subordinated loans that rank lower in priority than senior secured loans. Like with senior secured loans, Market share data is not readily available. Competitors include other BDCs like Owl Rock Capital Corporation and Apollo Investment Corporation.
- Equity Co-Investments: TSLX often takes small equity stakes in companies to boost returns, but is not considered to be core to the business and revenues are insubstantial. Main Street Capital is another BDC which makes equity investments.
Market Dynamics
Industry Overview
The middle-market lending industry is characterized by numerous participants, ranging from BDCs to private credit funds. Demand is driven by private equity-backed acquisitions and companies seeking capital for growth.
Positioning
TSLX is positioned as a direct lender to middle-market companies, offering flexible financing solutions. Its competitive advantage lies in its experienced team and access to Sixth Street's broader platform.
Total Addressable Market (TAM)
The estimated total market value for private credit in the US is over $1 trillion. TSLX's market position is approximately 0.1%, indicating significant growth potential.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Disciplined credit underwriting
- Access to Sixth Street platform
- Strong dividend yield
Weaknesses
- External management structure
- Exposure to cyclical industries
- Reliance on capital markets for funding
Opportunities
- Growing demand for private credit
- Expansion into new industry sectors
- Strategic acquisitions of other BDCs
Threats
- Economic downturn
- Increased competition
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- ORCC
- PSEC
Competitive Landscape
TSLX competes with other BDCs and private credit funds for investment opportunities. Its competitive advantage lies in its experienced team and access to Sixth Street's broader platform.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: TSLX has grown its investment portfolio and net asset value through strategic investments and capital raises.
Future Projections: Analysts project continued growth in TSLX's investment portfolio and earnings, driven by demand for private credit. Analyst estimates are not included here but can be easily found on any finance website.
Recent Initiatives: TSLX has been focused on diversifying its investment portfolio and increasing its exposure to higher-yielding assets.
Summary
Sixth Street Specialty Lending (TSLX) is a well-managed BDC with a strong track record of dividend payments. Its access to the Sixth Street platform gives it an edge in sourcing deals. The company's exposure to cyclical industries presents a risk, and shareholders need to watch out for rising interest rates and increased competition. TSLX appears well-positioned to continue growing its investment portfolio and delivering value to shareholders.
Similar Companies
- ARCC
- MAIN
- ORCC
- PSEC
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Sixth Street Specialty Lending Inc
Exchange NYSE | Headquaters Dallas, TX, United States | ||
IPO Launch date 2014-03-21 | CEO & Chairman of the Board Mr. Joshua William Easterly | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
Sixth 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.
Upturn is now on iOS and Android!
Experience Upturn on your mobile. Install it now!
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.