Sixth Street Specialty Lending is a high-quality business development company with strong 25% margins, a 121% free cash flow conversion rate, and a 1,024% dividend coverage ratio, but a confirmed death cross, declining revenue of -20%, and three simultaneously failed quality gates limit the near-term entry appeal despite the attractive underlying fundamentals.
Thesis pillars
- Earnings Execution Beat Streak→Stable
- Death Cross Revenue Decline Headwind↓Deteriorating
- High Quality Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Sixth Street Specialty Lending, (TSLX) Stock Analysis
Inst Constrain edge
Financial Services · Asset Management
Hold if already holding. Not a fresh buy at $18.43, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5.
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from... Read more
Hold if already holding. Not a fresh buy at $18.43, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 5.5/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 61d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
Recent developments
updated 2026-09-04Recent Developments — Sixth Street Specialty Lending,
Latest news
- NEWS Sixth Street Specialty Lending Inc (TSLX) Cash Flow - TradingKey — TradingKey neutral
- NEWS Should I Buy TSLX (Sixth Street Specialty Lending, Inc.) | AI Analysis, Technical & News Insights - Kavout | AI — Kavout | AI neutral
- NEWS Rivernorth Capital Management LLC Makes New $5.35 Million Investment in Sixth Street Specialty Lending, Inc. $TSLX - Mar — MarketBeat positive
- NEWS Rivernorth Capital Management LLC Makes New $5.35 Million Investment in Sixth Street Specialty Lending, Inc. $TSLX - mar — marketbeat.com positive
- NEWS Sixth Street Specialty Lending Inc (TSLX) Valuation: PE, PB & Fair Value Analysis - TradingKey — TradingKey neutral
Generated 2026-09-04T15:47:16Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWloan_portfolioInternet Services18%10-K Item 1: 'The largest industry in our portfolio as of December 31, 2025 was Internet Services, which represented...18.3% of the total portfolio based on fair value.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $18.43, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $18.87 (+2.4%), stop $17.75 (−3.8%), A.R:R -1.3:1. Score 5.5/10, moderate confidence.
Take-profit target: $18.87 (-6.7% upside). Target $18.87 (+2.4%), stop $17.75 (−3.8%), A.R:R -1.3:1. Stop-loss: $17.75.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5; Negative momentum.
Sixth Street Specialty Lending, trades at a P/E of 19.5 (forward 10.0). TrendMatrix value score: 7.5/10. Verdict: Hold.
18 analysts cover TSLX with a consensus score of 4.1/5. Average price target: $20.
What does Sixth Street Specialty Lending, do?Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by...
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from interest income on senior secured loans. As of December 31, 2025, the total investment portfolio was $3,347.3 million at fair value across 143 portfolio companies in 19 industries.