Sixth Street Specialty Lending Inc (TSLX) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Sixth Street Specialty Lending Inc stock (TSLX) is currently trading at $17.75. Sixth Street Specialty Lending Inc PE ratio is 9.81. Sixth Street Specialty Lending Inc PS ratio (Price-to-Sales) is 3.74. Analyst consensus price target for TSLX is $22.09. WallStSmart rates TSLX as Hold.
- TSLX PE ratio analysis and historical PE chart
- TSLX PS ratio (Price-to-Sales) history and trend
- TSLX intrinsic value — DCF, Graham Number, EPV models
- TSLX stock price prediction 2025 2026 2027 2028 2029 2030
- TSLX fair value vs current price
- TSLX insider transactions and insider buying
- Is TSLX undervalued or overvalued?
- Sixth Street Specialty Lending Inc financial analysis — revenue, earnings, cash flow
- TSLX Piotroski F-Score and Altman Z-Score
- TSLX analyst price target and Smart Rating
Sixth Street Specialty Lending Inc
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TSLX Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Sixth Street Specialty Lending Inc (TSLX)
TSLX trades 63% above its Graham fair value of $12.31, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Sixth Street Specialty Lending Inc (TSLX) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, operating margin, price/book. Concerns around revenue growth and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Sixth Street Specialty Lending Inc (TSLX) Key Strengths (5)
Keeps $77 of every $100 in revenue after operating costs
Keeps $38 of every $100 in revenue as net profit
Good growth relative to its price
Trading at 1.05x book value, attractively priced
56.17% held by institutions, strong professional interest
Supporting Valuation Data
Sixth Street Specialty Lending Inc (TSLX) Areas to Watch (5)
Revenue declining -12.50%, a shrinking business
Earnings declining -42.70%, profits shrinking
Small-cap company with higher risk but more growth potential
Moderate profitability with room for improvement
Revenue is fairly priced at 3.74x sales
Supporting Valuation Data
Sixth Street Specialty Lending Inc (TSLX) Detailed Analysis Report
Overall Assessment
This company scores 60/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 8.8/10) while 5 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, PEG Ratio. Valuation metrics including PEG Ratio (1.27), Price/Book (1.05) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 77.00%, Profit Margin at 38.00%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Market Cap. Some valuation metrics including Price/Sales (3.74) suggest expensive pricing. Growth concerns include Revenue Growth at -12.50%, EPS Growth at -42.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 10.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 10.60% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -12.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TSLX Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TSLX's Price-to-Sales ratio of 3.74x trades at a deep discount to its historical average of 9.59x (1th percentile). The current valuation is 84% below its historical high of 22.7x set in May 2014, and 3% above its historical low of 3.65x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~5.9x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Sixth Street Specialty Lending Inc (TSLX) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Sixth Street Specialty Lending Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 449M with 13% decline year-over-year. Profit margins are strong at 38.0%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 38.0% and operating margin of 77.0% demonstrate strong pricing power and operational efficiency.
Generating 52M in free cash flow and 52M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 13% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Dividend sustainability with a current yield of 11.6%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 1.7B is significantly higher than cash (20M). Monitor refinancing risk.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Sixth Street Specialty Lending Inc.
Bottom Line
Sixth Street Specialty Lending Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Sixth Street Specialty Lending Inc(TSLX)
NYSE
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Sixth Street Specialty Lending Inc. (TSLX) is a leading provider of financing solutions, primarily focusing on debt investments for private equity-backed middle market companies. The firm leverages its extensive industry expertise and strong relationships to offer tailored capital solutions that enhance returns while managing risks effectively. With a commitment to innovation, TSLX provides flexible financing options that prioritize sustainable income and long-term shareholder value. As part of Sixth Street Partners, TSLX enjoys a diversified investment platform, solidifying its stature as a key player in the specialty lending sector.