Is TSLX a good stock to buy right now?

Based on our 6-factor quantitative model, Sixth Street Specialty Lending, Inc. (TSLX) receives a "Reduce" rating with a composite score of 44.6/100. It is ranked #2,191 out of 4,446 stocks. Key factor scores: Quality 68/100, Value 35/100, Momentum 28/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for TSLX?

Sixth Street Specialty Lending, Inc. (TSLX) has a "Reduce" rating and 2-star score. The composite score of 44.6 ranks it #2,191 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is TSLX in?

Sixth Street Specialty Lending, Inc. operates in the Real Estate sector (Real Estate industry) with a market cap of $1.72 billion. It is classified as a small-cap stock.

Does TSLX pay a dividend?

Yes, TSLX pays a dividend with a current yield of 9.06%. For every $1,000 invested, you would receive approximately $90.60 in annual dividend income.

What is TSLX's P/E ratio?

TSLX has a trailing P/E ratio of 9.45x. The Real Estate sector average is 32.3x. This below-average P/E may indicate the stock is undervalued.

How profitable is TSLX?

TSLX's quality factor score is 68/100. Gross margin: 100.0%. ROE: 11.3% vs sector average 1.5%. High margins suggest pricing power and competitive moats.

How is TSLX valued compared to peers?

TSLX's value factor score is 35/100 (higher = cheaper). Key multiples: P/E 9.4x, EV/EBITDA 24.6x. Trading at a premium relative to peers.

What is TSLX's debt level?

TSLX's debt-to-equity ratio is 108%. Sector average: 60%. Moderate leverage is normal for established companies.

TSLX has a beta of 0.63, meaning it is less volatile than the market. Stability score: 82/100.

Does TSLX have high short interest?

TSLX's short interest factor score is 12/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

TSLX Stock Analysis: Top Small-Cap Reduce (Score 44.6/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
TSLX	+0.84%	-1.79%	-2.01%	-16.85%	-8.74%	-	-	-
Industry Proxy XLRE	+0.21%	+2.91%	-0.23%	+6.12%	+11.57%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+0.90%	-5.40%	-2.34%	-16.49%	-38.27%	-	-	-
Alpha vs Sector	+0.63%	-4.70%	-1.77%	-22.97%	-20.31%	-	-	-

Metric	TSLX	Benchmark
P/E Ratio	9.4x	-71%
EV/EBITDA	24.6x	+185%
Price / Book	1.1x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
JLL JONES LANG LASALLE INC	56	67	68	48	27.4x	7.1%	0.0%	2.2%	15.7%	134.0x	$14.3B	VS
GTY GETTY REALTY CORP /MD/	53	63	60	53	29.4x	6.3%	0.0%	31.6%	11.3%	93.0x	$1.9B	VS
UE Urban Edge Properties	52	59	62	48	27.6x	6.8%	85.0%	20.4%	12.8%	141.0x	$2.5B	VS
CURB Curbline Properties Corp.	51	59	46	53	193.6x	0.8%	100.0%	5.0%	63.4%	22.0x	$2.7B	VS
FPH Five Point Holdings, LLC	50	70	41	35	2.6x	5.9%	47.0%	265.2%	-73.7%	37.0x	$347M	VS
AXR AMREP CORP.	49	64	48	56	14.6x	7.0%	-	17.5%	22.4%	0.0x	$149M	VS
KW Kennedy-Wilson Holdings, Inc.	48	41	53	58	-	-6.4%	44.0%	-20.0%	-11.8%	321.0x	$1.5B	VS
TRC TEJON RANCH CO	46	55	34	54	319.5x	-0.7%	28.1%	-10.4%	110.4%	29.0x	$511M	VS
TSLX Sixth Street Specialty Lending, Inc.	45	68	35	28	9.5x	11.3%	100.0%	87.1%	-13.6%	108.0x	$1.7B
INTG INTERGROUP CORP	40	10	42	75	48.3x	-	-	-2.6%	16.3%	-170.0x	$78M	VS
STRS STRATUS PROPERTIES INC	37	10	55	67	20.4x	-4.5%	-24.1%	-67.8%	-41.5%	62.0x	$241M	VS

Key Ratio	TTM	2025	2024	2023	2022	2021
Gross Margin %	1.0%	-	-	-	-	0.9%
Operating Margin %	0.9%	-	-	-	-	0.1%
EBITDA Margin %	0.9%	-	-	-	-	0.4%
Net Margin %	0.9%	0.8%	-	-	-	0.6%
FCF Margin %	31.2%	-	-	-	-	-606.8%
ROE %	0.1%	0.1%	0.1%	0.1%	0.1%	0.2%
ROA %	0.1%	0.0%	0.1%	0.1%	0.0%	0.1%
ROIC %	0.0%	0.0%	0.0%	0.0%	0.0%	0.7%

Line Item	TTM	2025	2024	2023	2022	2021
	$164M	$215M	—	—	—	$393M
	—	—	—	—	—	$370M
Gross Margin	100.0%	---	---	---	---	94.3%
	—	—	—	—	—	-$21M
Total Operating Expenses	—	—	$260M	$240M	$141M	—
	$141M	—	—	—	—	$22M
EBIT	$141M	—	—	—	—	$22M
EBITDA	$141M	—	—	—	—	$138M
Operating Margin	87.1%	---	---	---	---	5.7%
EBITDA Margin	86.0%	---	---	---	---	35.1%
	—	—	—	$134M	$63M	$39M
	—	$215M	$224M	$199M	$169M	—
Income Tax Expense	—	-$500K	$4M	$2M	$3M	$2M
	$181M	$171M	$187M	$222M	$108M	$218M
Net Margin	87.1%	79.2%	---	---	---	55.6%
	$1.81	$1.81	$2.03	$2.61	$1.38	$2.93
Diluted EPS	$1.81	$1.81	$2.03	$2.61	$1.38	$2.93
Weighted Avg Basic	—	94M	92M	85M	78M	—
Weighted Avg Diluted	—	94M	92M	85M	78M	—

Sixth Street Specialty Lending, Inc. (TSLX) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does Sixth Street Specialty Lending, Inc. Do?

Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. It seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. The transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits. Sixth Street Specialty Lending, Inc. (TSLX) is classified as a small-cap stock in the Real Estate sector. The company is led by CEO Joshua W. Easterly, headquartered in Fort Worth, Texas. With a market capitalization of $1.7B, TSLX is one of the notable companies in the Real Estate sector.

Sixth Street Specialty Lending, Inc. (TSLX) Stock Rating — Reduce (April 2026)

As of April 2026, Sixth Street Specialty Lending, Inc. receives a Reduce rating with a composite score of 44.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.TSLX ranks #2,191 out of 4,446 stocks in our coverage universe. Within the Real Estate sector, Sixth Street Specialty Lending, Inc. ranks #24 of 57 stocks, placing it in the upper half of its Real Estate peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

TSLX Stock Price and 52-Week Range

Sixth Street Specialty Lending, Inc. (TSLX) currently trades at $18.06. The stock gained $0.15 (0.8%) in the most recent trading session. The 52-week high for TSLX is $25.16, which means the stock is currently trading -28.2% from its annual peak. The 52-week low is $17.31, putting the stock 4.3% above its annual trough. Recent trading volume was 494K shares, suggesting relatively thin trading activity.

Is TSLX Overvalued or Undervalued? — Valuation Analysis

Sixth Street Specialty Lending, Inc. (TSLX) carries a value factor score of 35/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 9.45x, compared to the Real Estate sector average of 32.31x — a discount of 71%. The price-to-book ratio stands at 1.07x, versus the sector average of 1.18x. The price-to-sales ratio is 10.47x, compared to 0.80x for the average Real Estate stock. On an enterprise value basis, TSLX trades at 24.58x EV/EBITDA, versus 8.62x for the sector.

At current multiples, Sixth Street Specialty Lending, Inc. trades at a premium to most Real Estate peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

Sixth Street Specialty Lending, Inc. Profitability — ROE, Margins, and Quality Score

Sixth Street Specialty Lending, Inc. (TSLX) earns a quality factor score of 68/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.3%, compared to the Real Estate sector average of 1.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.3% versus the sector average of 0.8%.

On a margin basis, Sixth Street Specialty Lending, Inc. reports gross margins of 100.0%, compared to 26.0% for the sector. The operating margin is 87.1% (sector: 3.7%). Net profit margin stands at 87.1%, versus 1.8% for the average Real Estate stock. Revenue growth is running at -13.6% on a trailing basis, compared to 6.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

TSLX Debt, Balance Sheet, and Financial Health

Sixth Street Specialty Lending, Inc. has a debt-to-equity ratio of 108.0%, compared to the Real Estate sector average of 60.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.89x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1.74B. Cash and equivalents stand at $83M.

TSLX has a beta of 0.63, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Sixth Street Specialty Lending, Inc. is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

Sixth Street Specialty Lending, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Sixth Street Specialty Lending, Inc. reported revenue of $164M and earnings per share (EPS) of $1.81. Net income for the quarter was $181M. Gross margin was 100.0%. Operating income came in at $141M.

In FY 2025, Sixth Street Specialty Lending, Inc. reported revenue of $215M and earnings per share (EPS) of $1.81. Net income for the quarter was $171M.

In Q3 2025, Sixth Street Specialty Lending, Inc. reported revenue of $52M and earnings per share (EPS) of $0.47. Net income for the quarter was $45M. Operating income came in at $45M.

In Q2 2025, Sixth Street Specialty Lending, Inc. reported revenue of $52M and earnings per share (EPS) of $0.63. Net income for the quarter was $59M. Operating income came in at $59M.

Over the past 8 quarters, Sixth Street Specialty Lending, Inc. has reported varying levels of revenue. Investors analyzing TSLX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

TSLX Dividend Yield and Income Analysis

Sixth Street Specialty Lending, Inc. (TSLX) currently pays a dividend yield of 9.1%. At this yield, a $10,000 investment in TSLX stock would generate approximately $$906.00 in annual dividend income. With a net margin of 87.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

TSLX Momentum and Technical Analysis Profile

Sixth Street Specialty Lending, Inc. (TSLX) has a momentum factor score of 28/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

TSLX vs Competitors — Real Estate Sector Ranking and Peer Comparison

Within the Real Estate sector, Sixth Street Specialty Lending, Inc. (TSLX) ranks #24 out of 57 stocks based on the Blank Capital composite score. This places TSLX in the upper half of all Real Estate stocks in our coverage universe. Key competitors and sector peers include Urban Edge Properties (UE) with a score of 51.9/100, Kennedy-Wilson Holdings, Inc. (KW) with a score of 48.0/100, AMREP CORP. (AXR) with a score of 49.0/100, GETTY REALTY CORP /MD/ (GTY) with a score of 53.1/100, and Curbline Properties Corp. (CURB) with a score of 50.5/100.

Comparing TSLX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TSLX vs S&P 500 (SPY) comparison to assess how Sixth Street Specialty Lending, Inc. stacks up against the broader market across all factor dimensions.

TSLX Next Earnings Date

No upcoming earnings date has been announced for Sixth Street Specialty Lending, Inc. (TSLX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy TSLX? — Investment Thesis Summary

The quantitative profile for Sixth Street Specialty Lending, Inc. suggests caution. The quality score of 68/100 indicates above-average profitability and business fundamentals. The value score of 35/100 indicates premium valuation. Momentum is weak at 28/100, a headwind for near-term performance. Low volatility (stability score 82/100) reduces downside risk.

In summary, Sixth Street Specialty Lending, Inc. (TSLX) earns a Reduce rating with a composite score of 44.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TSLX stock.

Related Resources for TSLX Investors

Explore more research and tools: TSLX vs S&P 500 comparison, top Real Estate stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare TSLX head-to-head with peers: TSLX vs UE, TSLX vs KW, TSLX vs AXR.

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