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Sixth Street Specialty Lending, Inc. TSLX
$ 17.89 0.68%

Sixth Street Specialty Lending, Inc. Financial Ratios 2020-2011 | TSLX

Brief overview of Sixth Street Specialty Lending, Inc.'s valuation and returns

The review covers five available annual periods spanning 2016 to 2020.

The valuation comparison uses P/E 7.72x (median 9.3x), P/B 1.18x (median 1.19x), P/CF 9.48x (median 10.6x). The multiple basket looks neutral against its history, differing from median levels by roughly -10.6%.

Earnings yield calculated as 1/P/E is about 13%, showing current profit per unit of share price.

End-period return metrics are ROE 15.3%, ROA 7.6%, ROCE 6%. Returns on capital and assets point to efficient economics and a strong internal source of growth.

Current PEG is 0.58x; the market pays comparatively little per unit of expected growth.

High leverage is part of the financial-sector model, so valuation should be linked to capital, asset quality and ROE.

Valuation takeaway

Sixth Street Specialty Lending, Inc.'s multiples form a balanced picture without a clear discount or premium. Future appeal depends on earnings and return trends.

Annual Financial Ratios Sixth Street Specialty Lending, Inc.

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

P/E

7.7 9.3 10.6 10.4 7.9 13.6 10.4 - - -

P/S

6.7 5.7 4.8 5.5 5.6 5.0 5.4 - - -

EV/EBITDA

- 13.6 19.1 17.6 10.4 45.1 19.1 - - -

PEG

0.58 0.36 -134.39 -0.51 0.08 -0.45 0.34 - - -

P/B

1.2 1.3 1.2 1.2 1.1 1.1 1.1 - - -

P/CF

9.5 -3.8 10.6 14.1 -25.8 -4.5 -5.9 - - -

ROE %

15.34 13.81 11.19 11.51 14.39 7.75 10.18 - - -

ROA %

7.62 6.78 6.88 6.49 8.18 4.22 6.52 - - -

ROCE %

- 5.96 8.81 7.36 6.71 6.62 8.58 - - -

DSO

15.2 18.9 12.3 11.7 18.4 21.4 13.7 - - -

DPO

- 59.5 64.7 65.0 71.4 68.7 - - - -

All numbers in USD currency

Multiples are an important financial analysis tool for the company Sixth Street Specialty Lending, Inc., allowing investors and analysts to quickly assess the company’s value and investment attractiveness based on the ratio of market indicators to the company’s financial performance. Essentially, multiples express how the market values the company relative to its earnings, revenue, equity, or other key metrics.

Advantages of Using Financial Ratios
  • Simplified Data Analysis
    Financial ratios transform large volumes of accounting data into compact and easily interpretable indicators, significantly simplifying the assessment of the company’s condition.
  • Comparability Between Companies
    Multiples standardize financial metrics, enabling objective comparison of companies of different sizes, industries, and market capitalizations.
  • Identification of Trends and Issues
    Regular analysis of ratios helps track the dynamics of financial health, identify strengths and weaknesses of the business, as well as potential risks.
  • Decision Support
    Financial multiples serve as an important tool for investors, creditors, and company management in making investment, credit, and managerial decisions.
  • Accelerated Assessment of Investment Attractiveness
    Ratios allow quick determination of key performance, liquidity, and financial stability indicators, facilitating prompt evaluation of companies’ attractiveness for investments.

Using multiples enables comparison between companies, even if they differ in size or industry, as they standardize financial data into ratios convenient for analysis. This is especially useful for evaluating companies where direct analysis of financial statements may be complex or require in-depth knowledge.

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