Sixth Street Specialty Lending Inc. Common Stock (TSLX)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

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

I look for durable earnings at sensible prices. TSLX is a business development company that lends to smaller and mid-sized companies, mostly through secured loans. It can be a decent lending niche, but credit is competitive and I do not see a wide moat. The filed record is mixed. In fiscal year 2023, the year ended 2023-12-31, net income was $222.0M and diluted EPS was $2.61. In fiscal year 2024, the year ended 2024-12-31, net income was $186.6M and EPS $2.03. In fiscal year 2025, the year ended 2025-12-31, net income was $170.5M and EPS $1.81. In fiscal Q1 2026, the quarter ended 2026-03-31, TSLX lost $26.0M, or $0.27 per diluted share, then in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $40.5M, or $0.43 per diluted share. FairStock calculates ROE of 5.63%, P/B of 1.05, a Graham Number of $18.57, and a 7.81% margin of safety at the 2026-10-13 close of $17.12. The 9.39% dividend yield and 6.3% FCF yield are attractive, but D/E of 1.24, Altman Z-Score of 0.51, and the Lynch SLOW GROWER — Shrinking label, with profit -0.9% a year over five years, temper my enthusiasm. At about book value and 18 times earnings, the price is not demanding, but neither is the record. I would want steadier earnings and dividend coverage before calling it a bargain.

In plain English: This company lends money to small and mid-sized businesses, mostly through secured loans, and pays a large dividend. Its profits have been uneven and generally lower than a few years ago, so the business looks mediocre rather than strong. At $17.12, the price looks roughly fair compared with its earnings and accounting value, not clearly cheap.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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