OCSL

Oaktree Specialty Lending Corporation

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

11/17/2026

Business Summary

Oaktree Specialty Lending Corporation (OCSL) functions as a business development company (BDC), dedicated to providing capital solutions for middle-market businesses. Its investment strategy involves a diverse array of financing types, including interim bridge loans, various tiers of secured debt (first and second lien, senior and junior), unsecured loans, hybrid mezzanine debt, and preferred equity stakes. These funds are primarily deployed to support growth initiatives such as corporate expansions, acquisitions led by private equity sponsors, and management buyouts within small and mid-sized enterprises. OCSL actively seeks opportunities across a broad spectrum of industries, including education, general business services, retail and consumer products, healthcare, manufacturing, the food and restaurant sector, construction and engineering, and media and advertising. Individual investments typically range from $5 million to $75 million, predominantly structured as integrated ("one-stop"), first-lien, or second-lien debt facilities, with the potential for a complementary equity co-investment. The target companies generally possess an enterprise value between $20 million and $150 million, and generate operating cash flow (EBITDA) of $3 million to $50 million. While the fund can commit up to $75 million per investment, it has the capacity to originate and underwrite larger transactions, up to $100 million. OCSL primarily concentrates its investment activities within the North American market and aims to serve as the lead investor in its portfolio companies.

 


VALUATION

P/E

24.72

Market Cap ($M USD)

$1.05B

Forward P/E

8.78

PEG

-2.67

PRICE TO SALES

3.77

PRICE TO BOOK

0.76

EV / EBITDA

13.15

5-Year Average P/E

Free Cash Flow Yield

26.36%

DCF Value

$35.61

Graham Number

$13.02

Price to FCF

3.79

EV to FCF

8.83

Earnings Yield

4.01%

FCF Yield

26.36%

DIVIDEND

Yield

12.30%

Annual Payout

$1.47

Payout Ratio

310.44%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.48

Next Year EPS Growth Estimate

$1.36

Next Year Revenue Growth Estimate

$285.65M

Return on Equity (ROE)

2.98%

FREE CASH FLOW

Operating Margin

44.09%

Debt-to-Equity

1.04

Piotroski F-Score

7

Altman Z-Score

0.25

Return on Invested Capital (ROIC)

4.12%

Current Ratio

3.92

Quick Ratio

3.92

Net Debt to EBITDA

7.50

Interest Coverage

1.20

Gross Profit margin

80.54%

FCF PER SHARE

$3.15

REVENUE PER SHARE

$3.17

Gainseekers Quantitative Analysis

Summary

The market seems to be significantly undervaluing Oaktree Specialty Lending Corporation. With a DCF value of $39.13 and a Graham Number of $14.11, the stock’s recent pricing indicates it traded well below intrinsic value. The Forward P/E of 8.77 suggests potential growth, yet the Altman Z-score of 0.067 raises red flags about financial distress. The Earnings Yield of 4.64% is modest, hinting at limited immediate returns. Overall, the valuation presents a mixed picture of opportunity and caution.

AI Exposure / Tech Reliance

Operating in the Financial - Credit Services industry, Oaktree Specialty Lending Corporation is positioned to leverage AI for enhanced credit risk assessment and operational efficiency. However, the traditional nature of its sector may slow tech adoption compared to more agile fintech firms. Its resilience will depend on integrating AI to streamline processes and improve client offerings.

The Bull Case

For the value-driven investor, Oaktree offers compelling reasons to buy. The ROIC of 5.24% reflects efficient capital use, while a Piotroski F-Score of 5 indicates moderate financial health. Despite a low FCF Yield of 1.17%, the robust operating margin of 45.24% showcases strong pricing power. These metrics suggest a company capable of generating solid returns over time, appealing to those seeking undervalued opportunities.

The Bear Case

Oaktree's structural weaknesses are glaring. The Price to FCF ratio of 85.48 and EV to FCF of 199.73 highlight poor cash flow efficiency, raising concerns about liquidity. Its Altman Z-score suggests potential financial distress, and the current ratio of 0.25 underscores liquidity challenges. Additionally, trading near its 52-week high, the stock appears technically overextended, posing risks for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$13.00

Institutional Ownership %

1-Year Beta

0.59

Insider Buying % (6 Mo)

Distance to 52-Week High

17.52%

Distance to 52-Week Low

11.08%

EARNINGS SURPRISE %

3.47%

50-DAY SMA

$12.26

200-DAY SMA

$12.09

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.