Oaktree Specialty Lending Corporation Common Stock (OCSL)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Oaktree Specialty Lending as a business development company that lends to small and mid-sized companies, and the filed record shows a lender whose earnings are uneven. In fiscal Q3 2026, the quarter ended 2026-06-30, net income was $30.9 million and diluted EPS was $0.35. But fiscal Q2 2026, the quarter ended 2026-03-31, produced a net loss of $18.9 million and diluted EPS of -$0.21, while fiscal Q1 2026 had $5.6 million of net income and $0.06 of diluted EPS. The longer trend is weaker: net income fell from $117.3 million in FY2023 to $57.9 million in FY2024 to $33.9 million in FY2025, with diluted EPS dropping from $1.63 to $0.72 to $0.39. That is not the earnings consistency I prize. The balance sheet uses leverage, with a FairStock-calculated debt-to-equity ratio of 1.05, and return on equity is only 2.95%. The Altman Z-score of -0.05 is a warning, even if that metric is awkward for a lender. On valuation, the close on 2026-10-13 was $11.58, or 0.74 times book value, and FairStock calls it an asset play. The Graham Number is $13.02, offering an 11.06% margin of safety, and the dividend yield is 10.63%. Free cash flow yield is 10.4%, and the Piotroski F-score is a middling 6/9. So there is asset value and income, but the quality of earnings and credit cycle matter enormously. I would want evidence that quarterly earnings are durable, not just a discount to book.

In plain English: Oaktree Specialty Lending is a lender that invests in loans to small and mid-sized companies. Its recent profits have been uneven and lower than in earlier years, so the business looks only fair. The stock price is below the value of its accounting net assets and pays a large dividend, but that cheapness comes with real credit and earnings risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer