Oaktree Specialty Lending (OCSL) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 13.35%
• Average Volume (3M): 586.03K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.51
• Revenue Growth: 22.17%
• EPS Growth: -46.78%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.41
• Shares Outstanding: 88,085,526
• 10 Day Avg. Volume: 478,115
• 30 Day Avg. Volume: 586,030
• PEG Ratio: -0.72
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 4.92
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 14.75
• Enterprise Value/Gross Profit: 36.30
• Enterprise Value/Ebitda: 41.77
• 1Y Price Target: $13.33
• Price Target Upside: -3.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ―

Oaktree Specialty Lending's overall performance reflects a stable yet challenging financial landscape. The robust balance sheet and high dividend yield are key strengths, but operational inefficiencies and technical weakness present notable risks. The recent earnings call highlights strategic initiatives yet underscores ongoing challenges, contributing to a moderate overall stock score.

Positive Factors

Robust Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility, allowing OCSL to navigate market challenges and invest in growth opportunities.

Strategic Refinancing

Successful refinancing efforts reduce interest expenses and extend debt maturity, enhancing financial stability and supporting long-term strategic initiatives.

Strong Investment Activity

Active investment in senior secured loans diversifies the portfolio and generates stable income, aligning with OCSL's strategy to provide tailored capital solutions.

Negative Factors

Increased Non-Accrual Investments

Rising non-accrual investments indicate potential credit quality issues, which could impact income generation and require increased focus on risk management.

Revenue Decline

Volatile revenue growth and recent declines suggest instability in income streams, necessitating strategic adjustments to stabilize and grow revenue.

Decreased Net Investment Income

A decline in net investment income reflects challenges in maintaining profitability, potentially affecting dividend sustainability and investor returns.

Oaktree Specialty Lending Business Overview & Revenue Model

Company Description

Oaktree Specialty Lending Corporation is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering, and media and advertising sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies with enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.

How the Company Makes Money

OCSL makes money primarily through interest income generated from its portfolio of debt investments. As a BDC, the company lends capital to middle-market companies, charging interest on these loans, which serves as the main revenue stream. Additionally, OCSL may realize gains from equity investments, which can contribute to its earnings. The company also benefits from its strategic affiliation with Oaktree Capital Management, L.P., which provides management expertise and access to a broad network of industry contacts. This partnership can enhance deal flow and investment opportunities, ultimately supporting the company's revenue generation and growth.

Oaktree Specialty Lending Financial Statement Overview

Summary

Oaktree Specialty Lending shows a mixed financial performance. Strong gross profit margins indicate efficient cost management, but operational challenges are evident with a negative EBIT margin. The balance sheet is robust with no debt, providing stability, yet profitability is modest. Cash flow is strong in operations but inconsistent in free cash flow growth.

Income Statement

Oaktree Specialty Lending shows a mixed financial performance. The TTM gross profit margin is strong at 84.81%, indicating efficient cost management. However, the net profit margin for TTM is modest at 23.97%, and a negative EBIT margin of -29.24% suggests operational challenges. Revenue growth is volatile, with a significant decline in the latest annual report, indicating potential revenue instability.

Balance Sheet

The company's balance sheet is robust with no debt, resulting in a favorable debt-to-equity ratio of 0. The equity ratio is stable at around 47%, indicating a solid equity base. However, the return on equity is relatively low at 3.77% TTM, suggesting limited profitability relative to equity.

Cash Flow

Oaktree Specialty Lending's cash flow statement reveals strong operating cash flow with an impressive operating cash flow to net income ratio of 5.89 for TTM. However, free cash flow growth is inconsistent, with a significant drop in the latest annual report, indicating potential cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	173.37M	299.70M	186.23M	236.85M	86.04M	278.82M
Gross Profit	70.44M	261.37M	57.61M	125.20M	39.11M	248.31M
EBITDA	61.21M	151.02M	57.80M	119.06M	32.86M	240.84M
Net Income	33.92M	33.92M	57.91M	117.33M	29.22M	237.26M
Balance Sheet
Total Assets	3.00B	3.00B	3.20B	3.22B	2.65B	2.64B
Cash, Cash Equivalents and Short-Term Investments	79.63M	79.63M	63.97M	136.45M	23.53M	29.33M
Total Debt	1.49B	1.49B	1.64B	1.60B	1.30B	1.27B
Total Liabilities	1.54B	1.54B	1.71B	1.70B	1.40B	1.32B
Stockholders Equity	1.47B	1.47B	1.49B	1.52B	1.25B	1.31B
Cash Flow
Free Cash Flow	181.82M	142.40M	19.08M	228.76M	22.39M	-230.52M
Operating Cash Flow	181.82M	142.40M	19.08M	228.76M	22.39M	-230.52M
Investing Cash Flow	46.55M	85.98M	0.00	0.00	0.00	0.00
Financing Cash Flow	-229.35M	-229.35M	-86.77M	-110.41M	-26.82M	224.19M

Oaktree Specialty Lending Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.78
• 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 OCSL, the sentiment is Positive. The current price of 13.78 is above the 20-day moving average (MA) of 13.59, above the 50-day MA of 13.48, and above the 200-day MA of 13.57, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 64.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCSL.

Oaktree Specialty Lending Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBDC	76 Outperform	$938.02M	9.26	8.60%	13.25%	-10.40%	-11.42%
FINV	71 Outperform	$1.25B	3.36	17.76%	5.33%	9.32%	29.40%
AGM	70 Outperform	$1.93B	10.30	13.72%	3.20%	27.36%	12.55%
LC	70 Outperform	$2.21B	21.62	7.40%	―	9.68%	94.85%
YRD	70 Outperform	$380.19M	2.20	12.53%	9.68%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OCSL	59 Neutral	$1.21B	34.97	2.30%	13.35%	22.17%	-46.78%