Oaktree Specialty Lending Corporation [NASDAQ:OCSL]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Oaktree Specialty Lending Corporation [OCSL], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in September. On average, stock market experts give OCSL an Outperform rating. Its stock price has been found in the range of 39.02 to 50.40. This is compared to its latest closing price of $5.06.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Oaktree Specialty Lending Corporation [OCSL] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.38.
For the quarter ending in Dec-18 Oaktree Specialty Lending Corporation [OCSL] generated $0.04 billion in sales. That’s 8.67% higher than the average estimate of $0.04 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 14 May (In 93 Days).
Fundamental Analysis of Oaktree Specialty Lending Corporation [OCSL]
Now let’s turn to look at profitability: with a current Operating Margin for Oaktree Specialty Lending Corporation [OCSL] sitting at +201.50 and its Gross Margin at -42.02, this company’s Net Margin is now 33.70%. These measurements indicate that Oaktree Specialty Lending Corporation [OCSL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 3.13, and its Return on Invested Capital has reached 4.70%. Its Return on Equity is 5.42, and its Return on Assets is 2.95. These metrics suggest that this Oaktree Specialty Lending Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Oaktree Specialty Lending Corporation [OCSL] has generated a Total Debt to Total Equity ratio of 74.26. Similarly, its Total Debt to Total Capital is 42.62, while its Total Debt to Total Assets stands at 41.07. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 44.52, and its Long-Term Debt to Total Capital is 25.54. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 28.14 and its Total Debt to EBITDA Value is 7.66. The Enterprise Value to Sales for this firm is now 28.92, and its Total Debt to Enterprise Value stands at 0.48. Oaktree Specialty Lending Corporation [OCSL] has a Price to Book Ratio of 0.81, a Price to Cash Flow Ratio of 111.23 and P/E Ratio of 7.04. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Similarly, this company’s Receivables Turnover is 0.93 and its Total Asset Turnover is 0.01.
Let’s now turn our attention to trading performance: Oaktree Specialty Lending Corporation [OCSL] has 138.00M shares outstanding, amounting to a total market cap of $721.74M. Its stock price has been found in the range of 4.08 to 5.14. At its current price, it has moved by 1.75% from its 52-week high, and it has moved 28.19% from its 52-week low.
This stock’s Beta value is currently 0.55, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 82.20. This RSI suggests that Oaktree Specialty Lending Corporation is currently Overbought.
Conclusion: Is Oaktree Specialty Lending Corporation [OCSL] a Reliable Buy?
Shares of Oaktree Specialty Lending Corporation [OCSL], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.