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Blackstone Secured Lending Fund (BXSL)
NYSE:BXSL
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Blackstone Secured Lending Fund
(NYSE:BXSL)
77Outperform
Positive Factors
Dividend Yield
The dividend yield is an attractive 11.3%, providing potential for a stable income stream.
Financial Performance
Blackstone Secured Lending (BXSL) reported another good quarter, driven by healthy credit, solid portfolio growth, and strong profitability.
Market Position
BXSL is one of the best-positioned BDCs to gain share and generate strong risk-adjusted returns.
Negative Factors
Earnings
Yield pressure muted top-line growth, resulting in core EPS being slightly below consensus.
NAV Loss
BXSL experienced ~$0.16 of NAV loss primarily from credit marks, led by healthcare credit Navigator Acquiror (Newport Healthcare).
Repayment Activity
Repays have been anemic, as YTD numbers imply an avg. asset life of ~13 years.
Blackstone Secured Lending Fund (BXSL) vs. S&P 500 (SPY)
Market Cap
$7.50B
Dividend Yield9.35%
Average Volume (3M)1.02M
Price to Earnings (P/E)9.6
Beta (1Y)0.34
Revenue Growth15.77%
EPS Growth-4.88%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength82
IndustryAsset Management
Share Statistics
EPS (TTM)3.47
Shares Outstanding227,818,920
10 Day Avg. Volume943,680
30 Day Avg. Volume1,022,969
Financial Highlights & Ratios
PEG Ratio5.00
Price to Book (P/B)N/A
Price to Sales (P/S)10.91
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.17Price Target Upside0.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Blackstone Secured Lending Fund Business Overview & Revenue Model
Company DescriptionBlackstone Secured Lending Fund (BXSL) is a publicly traded business development company that primarily focuses on providing flexible and comprehensive financing solutions to middle-market companies across various sectors. It is part of the broader Blackstone Group, one of the world's leading investment firms. BXSL offers secured loans, including first lien, unitranche, and second lien loans, to support businesses in achieving their growth objectives while ensuring capital preservation for its investors.
How the Company Makes MoneyBXSL makes money by earning interest and fees from the loans it provides to middle-market companies. The fund primarily invests in senior secured debt, which typically offers higher interest rates due to its priority claim on the borrower's assets in the event of default. Revenue is generated from the interest payments made by the borrowers, as well as any associated fees for arranging and managing the loans. BXSL benefits from the expertise and resources of the Blackstone Group, which helps in sourcing deals, conducting due diligence, and managing credit risk. Additionally, the fund may also realize gains from the appreciation of its investments, providing further returns to its investors.
Blackstone Secured Lending Fund Financial Statement Overview
Summary
Blackstone Secured Lending Fund demonstrates robust revenue growth and operational efficiency with high EBIT margins. However, the decline in net profit margin and negative cash flow highlight potential financial stresses. The strong equity base and absence of debt reduce risk, but low ROE and negative free cash flow pose concerns. Continued focus on improving net income conversion and cash flow management is essential for sustained financial health.Income Statement
The company has shown strong revenue growth with a 16% increase from 2023 to 2024. Gross profit margins remain solid at 100% due to the nature of the revenue model. However, net profit margin dropped significantly from 53.5% in 2023 to 1.1% in 2024, indicating increased expenses or other financial pressures. EBIT margin is exceptionally high at 99.4%, showcasing operational efficiency, but the absence of EBITDA data limits further analysis.85
Very Positive
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 45.1%. The company has no total debt in 2024, highlighting a low-risk leverage profile. However, a return on equity of only 0.2% in 2024 signals inefficiency in generating profits from shareholders’ equity. The consistent growth in total assets is positive, but the low ROE is concerning.78
Positive
Cash Flow
The cash flow statement shows volatility with negative operating cash flow in 2024, a reversal from positive cash flow in 2023. Free cash flow has declined significantly, reflecting potential liquidity challenges. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported profits. The company must address these cash flow discrepancies to stabilize financial health.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.33B | 1.14B | 387.80M | 473.35M | 389.12M | Gross Profit |
| 1.33B | 1.14B | 236.61M | 330.95M | 323.18M | EBIT |
| 1.32B | 937.12M | 602.23M | 462.86M | 241.05M | EBITDA |
| 0.00 | 0.00 | 448.41M | 0.00 | 251.46M | Net Income Common Stockholders |
| 14.52M | 611.95M | 404.56M | 460.42M | 218.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 229.61M | 154.86M | 131.27M | 102.88M | 217.99M | Total Assets |
| 13.47B | 10.13B | 9.91B | 10.18B | 5.95B | Total Debt |
| 0.00 | 4.91B | 5.53B | 5.50B | 2.50B | Net Debt |
| -229.61M | 4.76B | 5.40B | 5.40B | 2.28B | Total Liabilities |
| 7.40B | 5.18B | 5.75B | 5.73B | 2.68B | Stockholders Equity |
| 6.08B | 4.95B | 4.16B | 4.45B | 3.27B |
| Cash Flow | Free Cash Flow | |||
| -2.53B | 458.81M | 672.95M | -3.83B | -2.32B | Operating Cash Flow |
| -2.53B | 458.81M | 672.95M | -3.83B | -2.32B | Investing Cash Flow |
| 0.00 | 0.00 | 212.41M | -4.09B | -2.45B | Financing Cash Flow |
| 2.60B | -432.16M | -648.18M | 3.71B | 2.47B |
Blackstone Secured Lending Fund Technical Analysis
Positive
32.93
Price Trends
32.38
Negative
31.46
Positive
29.91
Positive
Market Momentum
0.03
Negative
51.68
Neutral
14.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXSL, the sentiment is Positive. The current price of 32.93 is above the 20-day moving average (MA) of 31.99, above the 50-day MA of 32.38, and above the 200-day MA of 29.91, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BXSL.
Blackstone Secured Lending Fund Risk Analysis
Blackstone Secured Lending Fund disclosed 106 risk factors in its most recent earnings report. Blackstone Secured Lending Fund reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blackstone Secured Lending Fund Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.50B | 9.55 | 12.59% | 9.35% | 15.77% | -4.88% | |
76 Outperform | $15.13B | 9.06 | 12.40% | 8.68% | 19.95% | -10.57% | |
74 Outperform | $5.02B | 9.68 | 19.26% | 5.24% | 51.80% | 12.05% | |
72 Outperform | $1.42B | 22.09 | 3.96% | 14.86% | -28.04% | -69.52% | |
64 Neutral | $14.25B | 10.26 | 8.97% | 4.33% | 16.33% | -11.91% | |
58 Neutral | $679.77M | ― | -8.57% | 17.02% | 8.24% | -207.60% | |
53 Neutral | $460.99M | 28.27 | 3.28% | 12.89% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
BXSL
Blackstone Secured Lending Fund
32.36
4.43
15.86%
MAIN
Main Street Capital
56.56
13.20
30.44%
PNNT
Pennantpark Investment
7.03
1.09
18.35%
ARCC
Ares Capital
22.16
3.54
19.01%
TCPC
BlackRock TCP Capital
8.01
-0.71
-8.14%
GSBD
Goldman Sachs BDC
11.63
-1.44
-11.02%
Blackstone Secured Lending Fund Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -0.75% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong quarter with record total investment income, increased net asset value, and strong credit performance. However, there were some concerns with a decline in weighted average yield and a slow start in new M&A activity. Despite these challenges, the overall sentiment remains positive due to the firm's strong financial performance and strategic positioning.Highlights
Record Total Investment Income
Blackstone Secured Lending Fund reported a record total investment income for the fourth quarter, with net investment income of $0.84 per share, representing a 12.3% annualized return on equity.
Increase in Net Asset Value
Net asset value per share increased for the ninth consecutive quarter by $0.12 to $27.39.
Strong Credit Performance
Credit quality remained strong with 0.3% of investments on nonaccrual cost, well below the average of traded BDC peers.
Successful New Debt Issuance
Issued nearly $1.2 billion of new debt through CLOs with a weighted average spread of 154 basis points over SOFR.
Increased Liquidity Position
Liquidity position increased to $2.4 billion, up from $1.1 billion last quarter, indicating strong deal flow expectations for 2025.
Strong Portfolio Performance
Portfolio companies showed growth rates in line or higher with the broader private credit market, with over 20% more profitability on an LTM EBITDA margin basis.
Lowlights
Decline in Weighted Average Yield
Weighted average yield on performing debt investments at fair value was 10.4% compared to 11.2% last quarter.
Slow Start for New M&A Activity
The start of the year is off to the slowest start since 2003 in terms of new M&A activity.
Minimal Repayments and Exits
Repayments were relatively light, with a 2024 repayment rate of 6% of the portfolio at fair value, compared to 10% for 2023.
Company Guidance
During the Blackstone Secured Lending Fund's fourth-quarter and full-year 2024 investor call, the company reported record total investment income with a net investment income (NII) of $0.84 per share, representing a 12.3% annualized return on equity. The fund's net asset value (NAV) per share increased for the ninth consecutive quarter by $0.12 to $27.39. Blackstone issued nearly $1.2 billion in new debt through CLOs and bonds at a weighted average spread of 154 basis points over SOFR and upsized revolving lines of credit by $850 million. The fund reported strong credit performance with only 0.3% of investments on nonaccrual cost and 0.2% at fair market value, well below the sector average. In the fourth quarter, Blackstone made $1.2 billion in investment commitments and $1.4 billion in new investment funding, with yields ranging between 8% to 10% and a three-year all-in spread of 520 basis points. The fund maintains a diverse liability profile and ended the quarter with $13.1 billion in investments at fair value, a 9% increase from the previous quarter, while increasing liquidity to $2.4 billion. The fund's dividend distribution remains steady at $0.77 per share. The company anticipates a positive M&A outlook for 2025, supported by improved cost of capital and favorable market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.