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Blackstone Secured Lending Fund (BXSL)
NYSE:BXSL
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Blackstone Secured Lending Fund
(NYSE:BXSL)
Rating:74Outperform
Price Target:―
Positive Factors
Financial Flexibility
Nearly 60% of BXSL’s outstanding debt is unsecured, increasing financial flexibility and liquidity.
Financial Performance
Blackstone Secured Lending (BXSL) reported another good quarter driven by healthy credit, strong fees, and solid liquidity.
Risk Management
Non-accrual investments were only 0.3% of the portfolio at cost, significantly below the BDC non-accrual peer average.
Negative Factors
Portfolio Performance
The portfolio declined 2% due to elevated payoffs plus slowing originations given macro uncertainty.
Revenue Growth
Yield pressure muted top-line growth, resulting in core EPS being slightly below consensus.
Blackstone Secured Lending Fund (BXSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.29B
Dividend Yield9.64%
Average Volume (3M)754.97K
Price to Earnings (P/E)10.1
Beta (1Y)0.46
Revenue Growth15.77%
EPS Growth-4.88%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength79
IndustryAsset Management
Share Statistics
EPS (TTM)0.83
Shares Outstanding228,010,000
10 Day Avg. Volume575,967
30 Day Avg. Volume754,966
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio10.10
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit13.43
Enterprise Value/Ebitda3.39
Forecast
1Y Price Target
$31.67Price Target Upside-0.85% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Blackstone Secured Lending Fund Business Overview & Revenue Model
Company DescriptionBlackstone Secured Lending Fund (BXSL) is a business development company that operates in the financial services sector, primarily focusing on providing credit solutions to middle-market companies. The company invests primarily in secured debt instruments, including first and second lien loans, and seeks to offer flexible financing solutions to its clients. BXSL is managed by Blackstone Credit, a division of Blackstone, a leading global investment firm.
How the Company Makes MoneyBlackstone Secured Lending Fund makes money primarily through interest income and fees associated with its lending activities. The company generates revenue by providing secured loans to middle-market companies, which pay interest on the borrowed amounts. Additionally, BXSL may earn income through origination fees, prepayment penalties, and other loan-related charges. The company's financial performance is largely influenced by the credit quality of its portfolio, interest rate trends, and macroeconomic conditions. Partnerships and networks established by Blackstone Credit enhance BXSL's ability to source attractive investment opportunities, contributing to its revenue generation.
Blackstone Secured Lending Fund Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 8.46%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong net investment income, a high distribution yield, and efficient cost management, alongside low non-accrual rates and successful portfolio growth. However, challenges include the potential impact of tariffs, a decrease in the weighted average yield, elevated repayments, and unrealized losses. Overall, the positive financial performance and strategic positioning outweigh the concerns related to tariffs and market volatility.Q1-2025 Updates
Positive Updates
Strong Net Investment Income
BXSL reported a net investment income (NII) of $0.83 per share for the quarter, representing a 12.1% annualized return on equity. This NII is primarily composed of interest income.
High Distribution Yield
The distribution of $0.77 per share was covered by net investment income by 8%, representing an 11.2% annualized distribution yield, one of the highest among its traded BDC peers.
Low Non-Accruals
Credit quality remained strong with 0.3% of investments on non-accrual at cost and 0.1% at fair market value, well below the average of their traded BDC peers.
Efficient Cost Management
BXSL maintains among the lowest management fees and G&A costs as a percentage of NAV across its traded BDC peers, allowing focus on high-quality assets.
Strong Portfolio Growth
BXSL ended the quarter with $12.8 billion of investments at fair value, over a 20% increase from $10.4 billion year-over-year.
Successful Debt Issuance
BXSL issued $500 million of new debt at a coupon of 5.3%, the tightest spread compared to traded BDC peers in 2025.
Negative Updates
Impact of Tariffs
Uncertainty around tariffs has affected investor sentiment and poses a potential impact on a relatively small group of portfolio companies.
Decrease in Weighted Average Yield
The weighted average yield on performing debt investments decreased to 10.2% this quarter end from 10.4% last quarter.
Elevated Repayments
BXSL experienced elevated repayments in the first quarter, accounting for $978 million, resulting in a net funded investment activity of negative $289 million.
Unrealized Losses
$0.17 per share of unrealized losses were reported, primarily concentrated in a small handful of larger positions.
Company Guidance
The Blackstone Secured Lending Fund's first quarter 2025 earnings call provided several key metrics demonstrating the company's performance and strategic positioning. The fund reported a net investment income (NII) of $0.83 per share, translating to a 12.1% annualized return on equity. Its net asset value per share remained stable at $27.39, with a distribution of $0.77 per share, representing an 11.2% annualized distribution yield. The company's credit quality was highlighted, with only 0.3% of investments on non-accrual at cost and 0.1% at fair market value, significantly below the peer average. Additionally, Blackstone issued $500 million in new debt with a 5.3% coupon, and the weighted average interest rate on drawn debt decreased to 5.01%. The fund committed over $750 million in new investments, continuing its strategy of focusing on high-quality assets with a significant portion invested in first lien senior secured loans.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.04B | 1.05B | 1.14B | 387.80M | 473.35M | 389.12M | Gross Profit |
| 699.24M | 731.26M | 1.14B | 386.65M | 490.09M | 323.18M | EBIT |
| 675.50M | 708.62M | 937.12M | 405.94M | 474.58M | 241.05M | EBITDA |
| 675.50M | 708.62M | -73.84M | 0.00 | 522.41M | 0.00 | Net Income Common Stockholders |
| 660.15M | 694.10M | 611.95M | 404.56M | 460.42M | 218.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.64M | 229.61M | 154.86M | 131.27M | 102.88M | 217.99M | Total Assets |
| 1.02B | 13.47B | 10.13B | 9.91B | 10.18B | 5.95B | Total Debt |
| 284.05M | 7.06B | 4.91B | 5.53B | 5.50B | 2.50B | Net Debt |
| 263.41M | 6.83B | 4.76B | 5.40B | 5.40B | 2.28B | Total Liabilities |
| 384.05M | 7.40B | 5.18B | 5.75B | 5.73B | 2.68B | Stockholders Equity |
| 632.75M | 6.08B | 4.95B | 4.16B | 4.45B | 3.27B |
| Cash Flow | Free Cash Flow | ||||
| -1.71B | -2.53B | 458.81M | 672.95M | -3.83B | -2.32B | Operating Cash Flow |
| -1.71B | -2.53B | 458.81M | 672.95M | -3.83B | -2.32B | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | 212.41M | -4.09B | -2.45B | Financing Cash Flow |
| 2.52B | 2.60B | -432.16M | -648.18M | 3.71B | 2.47B |
Blackstone Secured Lending Fund Technical Analysis
Positive
31.94
Price Trends
30.32
Positive
31.34
Positive
30.40
Positive
Market Momentum
0.42
Positive
62.41
Neutral
71.82
Neutral
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 31.94 is above the 20-day moving average (MA) of 31.65, above the 50-day MA of 30.32, and above the 200-day MA of 30.40, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.40B | 10.85 | 10.29% | 8.64% | 14.14% | -31.30% | |
74 Outperform | $7.29B | 10.10 | 11.59% | 9.64% | 15.77% | -4.88% | |
74 Outperform | $5.12B | 9.76 | 19.31% | 5.06% | 51.80% | 12.05% | |
70 Outperform | $3.18B | 13.63 | 11.30% | 8.85% | -7.29% | -38.60% | |
64 Neutral | $12.83B | 9.78 | 7.78% | 16985.64% | 12.26% | -7.81% | |
58 Neutral | $6.02B | 11.32 | 7.97% | 13.08% | -16.13% | -15.88% | |
48 Neutral | $442.71M | 45.84 | 1.95% | 13.54% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
BXSL
Blackstone Secured Lending Fund
32.00
3.52
12.36%
HTGC
Hercules Capital
18.03
0.06
0.33%
MAIN
Main Street Capital
58.15
12.82
28.28%
PNNT
Pennantpark Investment
6.87
0.17
2.54%
ARCC
Ares Capital
22.34
2.77
14.15%
FSK
FS KKR Capital
21.50
3.61
20.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.