Blackstone Secured Lending Fund (BXSL) AI Stock Analysis

• Market Cap: $7.40B
• Dividend Yield: 9.56%
• Average Volume (3M): 886.75K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.47
• Revenue Growth: 15.77%
• EPS Growth: -4.88%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 0.83
• Shares Outstanding: 229,680,600
• 10 Day Avg. Volume: 857,237
• 30 Day Avg. Volume: 886,748
• PEG Ratio: -0.39
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.52
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 13.03
• Enterprise Value/Ebitda: 3.29
• 1Y Price Target: $31.67
• Price Target Upside: -1.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: ―

The overall score is influenced by strong financial performance and attractive valuation, with supportive earnings call insights. Key strengths include robust revenue growth and a high dividend yield. However, financial stresses like declining net profit margin and negative cash flow, combined with bearish technical signals, temper the positive outlook. Strategic improvements in cash flow management and maintaining operational efficiency will be crucial for future performance.

Positive Factors

Earnings

Blackstone Secured Lending reported another good quarter driven by healthy credit, strong fees, and solid liquidity.

Financial Performance

NAV/share increased to a record $27.39, driven by core earnings above the dividend.

Negative Factors

Growth

Yield pressure muted top-line growth, resulting in core EPS being slightly below consensus.

Portfolio Performance

The portfolio declined 2% due to elevated payoffs plus slowing originations given macro uncertainty.

Blackstone Secured Lending Fund Business Overview & Revenue Model

Company Description

Blackstone Secured Lending Fund is business development company and a Delaware statutory trust formed on March 26, 2018, and structured as an externally managed, non-diversified closed-end investment Fund. On October 26, 2018, the fund elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). In addition, the Fund elected to be treated for U.S. federal income tax purposes, as a regulated investment company (RIC), as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The fund also intends to continue to comply with the requirements prescribed by the Code in order to maintain tax treatment as a RIC. The fund's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The Fund seeks to achieve its investment objective primarily through originated loans, equity and other securities, including syndicated loans, of private U.S. companies, specifically small and middle market companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities.

How the Company Makes Money

Blackstone 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 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.

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.

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.

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
EBITDA	675.50M	708.62M	-73.84M	0.00	522.41M	0.00
Net Income	660.15M	694.10M	611.95M	404.56M	460.42M	218.64M
Balance Sheet
Total Assets	13.97B	13.47B	10.13B	9.91B	10.18B	5.95B
Cash, Cash Equivalents and Short-Term Investments	897.31M	229.61M	154.86M	131.27M	102.88M	217.99M
Total Debt	7.38B	7.06B	4.91B	5.53B	5.50B	2.50B
Total Liabilities	7.73B	7.40B	5.18B	5.75B	5.73B	2.68B
Stockholders Equity	6.24B	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

• Technical Analysis Sentiment: Positive
• Last Price: 32.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 32.22 is above the 20-day moving average (MA) of 31.38, above the 50-day MA of 30.99, and above the 200-day MA of 30.20, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 70.13 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	74 Outperform	$16.11B	11.35	10.29%	8.36%	14.14%	-31.30%
BXSL	74 Outperform	$7.40B	10.18	11.59%	9.56%	15.77%	-4.88%
MAIN	74 Outperform	$5.73B	10.92	19.31%	6.88%	51.80%	12.05%
HTGC	70 Outperform	$3.38B	14.47	11.30%	12.36%	-7.29%	-38.60%
Sector *	68 Neutral	$16.93B	11.67	9.79%	3.89%	11.83%	-7.56%
FSK	58 Neutral	$6.22B	11.70	7.97%	12.60%	-16.13%	-15.88%
PNNT	48 Neutral	$479.27M	49.63	1.95%	14.17%	―	-66.59%