Stock fact sheet · data as of
Sixth Street Specialty Lending, Inc. (TSLX): fair value, margin of safety and Wheel Score
Ticker symbol TSLX · Financial Services · Asset Management · United States · Blend Income
Is TSLX undervalued?
Sixth Street Specialty Lending, Inc. (TSLX) closed at 17.81 on 5 Nov 2026, close to the GLS average fair value of 17.66 (0.9% above fair value). 3 of the 9 models that produced a number sit above the price, 6 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between Payback Time (0.0033) and DCF (74.56). 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, neither cheapness nor growth clearly wins for TSLX, so the nightly engine files it under Blend (value score 48, growth score 40, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for TSLX
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 | 74.56 | +319% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.39 | -2% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 10.12 | -43% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.66 | -91% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 18.15 | +2% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1.34 | -92% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 0.0033 | -100% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 26.49 | +49% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.19 | -48% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.99 | -207% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 20.00 | +12% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Sixth Street Specialty Lending, Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.7/10 puts TSLX among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are moderate - ROIC 5.1%, ROE 10.6%, ROA 5.0% - with debt at 1.08 times equity and a free-cash-flow yield of 0.0%.
The dividend yield is high at 10.11% (payout ratio 189%) - 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 7/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 7.7 / 10 | ROE | 10.6% |
| Debt / equity | 1.08 | ROA | 5.0% |
| Free-cash-flow yield | 0.0% | Payout ratio | 189% |
| Institutions | 7 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 32: Weak
With a Wheel Score of 32 Sixth Street Specialty Lending, Inc. sits in the Weak band. It fails filter 3, below fair value - trades 1% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6); Value (weak) is its weakest part.
Implied volatility is 30% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 6,326 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 678k shares a day on a market cap of $1.7B, with a beta of 0.64 - 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 | Fails | trades 1% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 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 | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 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 | Weak | 1% above fair value | |
| Premium | Good | implied volatility 30% | |
| Moat | Good | moat 7.7/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Weak | 245 contracts a day, 6,326 open interest | |
| Stability | Fair | beta 0.64, $1.7B 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
No upcoming earnings date is recorded for TSLX in the nightly calendar.
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 Sixth Street Specialty Lending, Inc. 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 |
|---|---|---|---|---|---|
| ETV Eaton Vance Tax-Managed Buy-Write Opportunities Fund | 14.51 | 63.02 | +77% | 25No options | $1.7B |
| FCTFX Fidelity California Municipal Income | 12.01 | 12.59 | +5% | 14No options | $1.7B |
| CDHAX Calvert International Responsible Idx A | 43.21 | 40.69 | -6% | 16No options | $1.7B |
| CET Central Securities Corp. | 56.70 | 150.52 | +62% | 34No options | $1.7B |
| BDJ BlackRock Enhanced Equity Dividend Trust | 9.73 | 41.81 | +77% | 32No options | $1.7B |
| PDO Pimco Dynamic Income Opportunities Fund | 12.06 | 13.40 | +10% | 17No options | $1.7B |
| GLPIX Goldman Sachs MLP Energy Infrastructure Fund | 40.91 | - | - | 14No options | $1.7B |
| CLM Cornerstone Strategic Value Fund, Inc. | 6.11 | 29.57 | +79% | 25No options | $1.7B |
| PTOAX PIMCO StocksPLUS Absolute Return Fund Class A | 13.00 | 6.80 | -91% | 10No options | $1.7B |
| GAB The Gabelli Equity Trust Inc. | 5.33 | 30.11 | +82% | 32No options | $1.7B |
| NUV Nuveen Municipal Value Fund, Inc. | 8.41 | 11.62 | +28% | 23No options | $1.7B |
| FMIYX FMI International Fund Institutional Class | 39.90 | 88.92 | +55% | 29No options | $1.8B |
⚖ Compare TSLX with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about TSLX
Is TSLX undervalued right now?
Not meaningfully: at 17.81 the stock trades within a few percent of the GLS average fair value of 17.66 (0.9% above fair value, data as of 5 Nov 2026).
What is the Wheel Score of TSLX and what does it mean?
TSLX scores 32 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4. 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 TSLX?
17.66 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 Sixth Street Specialty Lending, Inc. report earnings next?
No upcoming earnings date is recorded for TSLX in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does TSLX have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 6,326 open interest across all expiries and implied volatility of 30% 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.