Stock fact sheet · data as of
Oaktree Specialty Lending Corporation (OCSL): fair value, margin of safety and Wheel Score
Ticker symbol OCSL · Financial Services · Asset Management · United States · Growth Income
Is OCSL undervalued?
OCSL has a margin of safety of 49%: the stock closed at 12.61 on 5 Nov 2026 against a GLS average fair value of 24.94. 6 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (1.27) and 10 Cap (63.59). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, OCSL is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 60, growth score 89, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for OCSL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 36.33 | +188% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 13.02 | +3% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 6.48 | -49% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.27 | -90% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.35 | +133% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 63.59 | +404% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 47.47 | +276% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.63 | +72% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 5.33 | -58% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -15.92 | -226% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.00 | +3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Oaktree Specialty Lending Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 4.5/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 1.1%, ROE 2.3%, ROA 1.1% - with debt at 1.01 times equity and a free-cash-flow yield of 25.0%.
The dividend yield is high at 11.66% (payout ratio 310%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 6/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 1.1% |
|---|---|---|---|
| GLS Moat | 4.5 / 10 | ROE | 2.3% |
| Debt / equity | 1.01 | ROA | 1.1% |
| Free-cash-flow yield | 25.0% | Payout ratio | 310% |
| Institutions | 6 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Oaktree Specialty Lending Corporation sits in the Weak band. It fails filter 6, no serious red flags - Red Flags score 55 (under 60); Red Flags (weak) is its weakest part.
Implied volatility is 60% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,908 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 512k shares a day on a market cap of $1.1B, with a beta of 0.57 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 55 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 49% below fair value | |
| Premium | Strong | implied volatility 60% | |
| Moat | Fair | moat 4.5/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Weak | Red Flags score 55/100 | |
| Option trading | Weak | 306 contracts a day, 2,908 open interest | |
| Stability | Fair | beta 0.57, $1.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Oaktree Specialty Lending Corporation reports earnings on 17 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Oaktree Specialty Lending Corporation by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NBXG Neuberger Next Generation Connectivity Fund Inc. | 14.20 | 91.00 | +84% | 25No options | $1.1B |
| EACAX Eaton Vance California Municipal Opportunities Fund | 9.79 | 13.63 | +28% | 27No options | $1.1B |
| PSGCX Virtus KAR Small-Cap Growth Fund Class C | 10.43 | 43.38 | +76% | 26No options | $1.1B |
| KLCIX Federated Hermes Kaufmann Large Cap Fund Institutional Shares | 18.53 | 83.48 | +78% | 28No options | $1.1B |
| VRISX Virtus KAR International Small-Mid Cap Fund Class R6 | 21.69 | 62.11 | +65% | 26No options | $1.1B |
| ARCVX American Century Investments One Choice 2030 Portfolio | 12.91 | - | - | 9No options | $1.1B |
| VIISX Virtus KAR International Small-Mid Cap Fund | 21.64 | 38.36 | +44% | 26No options | $1.1B |
| AOD Abrdn Total Dynamic Dividend Fund | 10.24 | 63.04 | +84% | 25No options | $1.1B |
| ARDVX American Century One Choice 2040 Ptf Investor Class | 14.14 | 14.77 | +4% | 11No options | $1.1B |
| CAM Alliance Bernstein - AB California Intermediate Municipal ETF | 24.66 | 23.15 | -7% | 12No options | $1.1B |
| WBSNX William Blair Small Cap Growth Fund Class N | 31.34 | 19.62 | -60% | 11No options | $1.2B |
| WBENX William Blair Emerging Mkts Growth N | 17.45 | 0.3174 | -5398% | 9No options | $1.1B |
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Start free See the Sunday ScanQuestions about OCSL
Is OCSL undervalued right now?
By the GLS models, yes: at 12.61 the stock is 49% below the average fair value of 24.94 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of OCSL and what does it mean?
OCSL scores 45 out of 100 (Weak) - it fails Wheel Trade Filter 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for OCSL?
24.94 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Oaktree Specialty Lending Corporation report earnings next?
The next earnings report is due on 17 Nov 2026 (before the open), 12 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does OCSL have listed options, and how liquid are they?
Yes. The nightly snapshot found 16 listed contracts with 2,908 open interest across all expiries and implied volatility of 60% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.