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Blackstone Secured Lending Fund (BXSL)
NYSE:BXSL
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Blackstone Secured Lending Fund
(NYSE:BXSL)
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Rating:74Outperform
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
Revenue Growth
Sustained revenue growth indicates effective market penetration and demand for BXSL's credit solutions, supporting long-term business expansion.
Strong Credit Performance
Maintaining high credit quality reduces risk and enhances the stability of income streams, crucial for long-term financial health.
Increased Liquidity Position
Enhanced liquidity provides BXSL with greater flexibility to capitalize on investment opportunities, supporting strategic growth initiatives.
Negative Factors
Declining Net Profit Margin
A sharp decline in net profit margin suggests rising costs or inefficiencies, which could impact profitability if not addressed.
Negative Cash Flow
Negative cash flow can strain financial resources, limiting the company's ability to invest in growth and manage debt effectively.
Slow Start for New M&A Activity
A slow M&A environment could hinder BXSL's ability to expand its portfolio and capture new growth opportunities in the near term.
Blackstone Secured Lending Fund (BXSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.39B
Dividend Yield11.18%
Average Volume (3M)1.25M
Price to Earnings (P/E)9.8
Beta (1Y)0.44
Revenue Growth13.67%
EPS Growth-26.56%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.77
Shares Outstanding230,232,990
10 Day Avg. Volume1,644,473
30 Day Avg. Volume1,253,706
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.16
Enterprise Value/Revenue13.64
Enterprise Value/Gross Profit20.91
Enterprise Value/Ebitda21.79
Forecast
1Y Price Target
$31.64Price Target Upside14.89% Upside
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:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected positive trends in deal activity and robust net investment income, supported by a strong portfolio and efficient cost management. Despite a slight decrease in net asset value and some asset-specific underperformance, the overall sentiment is positive, driven by growth and stable credit quality.Q2-2025 Updates
Positive Updates
Increase in Investment Activity
BXSL saw a nearly 50% increase in new Blackstone Credit Insurance global private credit deal screenings compared to the fourth quarter of the previous year.
Strong Net Investment Income
BXSL reported net investment income of $0.77 per share, representing an 11.2% annualized return on equity, with a distribution yield of 11.3%.
Portfolio Stability and Growth
BXSL had 0.3% of investments on nonaccrual at cost, and the portfolio saw year-over-year EBITDA growth of nearly 11%.
Efficient Cost Management
BXSL's operating expenses are significantly lower than peers, with a focus on driving down costs such as liabilities and fees.
High Credit Quality
98% of BXSL's investments are in first lien senior secured loans with an average loan-to-value of 46.9% and a low nonaccrual rate of 0.3%.
Negative Updates
Slight Decrease in Net Asset Value
Net asset value per share decreased by $0.06 quarter-over-quarter to $27.33.
Medallia Loan Underperformance
BXSL's largest loan, Medallia, was marked down to 87% of par due to underperformance, indicating some stress in the asset.
Company Guidance
During the Blackstone Secured Lending Second Quarter 2025 Earnings Call, the management team provided detailed guidance on several key financial metrics and strategic initiatives. Net investment income (NII) was reported at $0.77 per share, representing an 11.2% annualized return on equity, with a distribution yield of 11.3%, both of which were fully covered by NII. The net asset value (NAV) per share decreased slightly to $27.33. The company's portfolio saw a 50% increase in new Blackstone Credit Insurance (BXCI) global private credit deal screenings compared to the fourth quarter of the previous year, indicating a significant uptick in deal activity. Credit quality remained robust, with a nonaccrual rate of 0.3% at cost. The portfolio's weighted average yield on performing debt investments was 10.2%, while the weighted average interest rate on borrowings stood at 5.03%. Total liquidity reached nearly $3 billion, with leverage remaining near the midpoint of the target range at 1.13x. The company emphasized its focus on maintaining low operating costs, with expenses at 20 basis points, significantly lower than the average BDC.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 | 1.01B | 1.05B | 1.14B | 387.80M | 473.35M | 389.12M |
| Gross Profit | 661.66M | 731.26M | 1.14B | 386.65M | 490.09M | 323.18M |
| EBITDA | 634.73M | 708.62M | -73.84M | 0.00 | 522.41M | 0.00 |
| Net Income | 619.01M | 694.10M | 611.95M | 404.56M | 460.42M | 218.64M |
Balance Sheet | ||||||
| Total Assets | 13.71B | 13.47B | 10.13B | 9.91B | 10.18B | 5.95B |
| Cash, Cash Equivalents and Short-Term Investments | 186.61M | 229.61M | 154.86M | 131.27M | 102.88M | 217.99M |
| Total Debt | 7.09B | 7.06B | 4.91B | 5.53B | 5.50B | 2.50B |
| Total Liabilities | 7.42B | 7.40B | 5.18B | 5.75B | 5.73B | 2.68B |
| Stockholders Equity | 6.29B | 6.08B | 4.95B | 4.16B | 4.45B | 3.27B |
Cash Flow | ||||||
| Free Cash Flow | -1.22B | -2.53B | 458.81M | 672.95M | -3.83B | -2.32B |
| Operating Cash Flow | -1.22B | -2.53B | 458.81M | 672.95M | -3.83B | -2.32B |
| Investing Cash Flow | -1.59B | 0.00 | 0.00 | 212.41M | -4.09B | -2.45B |
| Financing Cash Flow | 1.20B | 2.60B | -432.16M | -648.18M | 3.71B | 2.47B |
Blackstone Secured Lending Fund Technical Analysis
Negative
27.54
Price Trends
30.46
Negative
30.41
Negative
30.49
Negative
Market Momentum
-0.70
Positive
18.56
Positive
3.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXSL, the sentiment is Negative. The current price of 27.54 is below the 20-day moving average (MA) of 29.20, below the 50-day MA of 30.46, and below the 200-day MA of 30.49, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 18.56 is Positive, neither overbought nor oversold. The STOCH value of 3.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 14.88B | 10.37 | 11.40% | 9.10% | 7.71% | -29.47% | |
74 Outperform | $6.39B | 9.80 | 10.60% | 11.18% | 13.67% | -26.56% | |
74 Outperform | 5.88B | 10.72 | 0.00% | 5.93% | 28.32% | 13.63% | |
64 Neutral | 3.49B | 12.68 | 13.07% | 9.83% | -15.88% | -13.91% | |
58 Neutral | 4.49B | 21.72 | 0.00% | 17.47% | -8.32% | -65.56% | |
48 Neutral | 444.01M | 31.86 | 0.00% | 14.12% | -35.46% | -67.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
BXSL
Blackstone Secured Lending Fund
27.54
0.20
0.73%
MAIN
Main Street Capital
65.79
19.23
41.30%
PNNT
Pennantpark Investment
6.80
0.70
11.48%
ARCC
Ares Capital
21.09
2.47
13.27%
FSK
FS KKR Capital
16.03
-1.01
-5.93%
STEP
StepStone Group
60.13
5.80
10.68%
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.