OAKTREE SPECIALTY LENDING Reports Third Quarter Results for FY2023
August 9, 2023
🌥️Earnings Overview
On August 3 2023, OAKTREE SPECIALTY LENDING ($NASDAQ:OCSL) reported their financial results for the third quarter of FY2023, ending June 30 2023. The company achieved a total revenue of USD 37.9 million, which was a remarkable 197.0% increase from the -35.8 million recorded in the same quarter of the previous year. In addition, net income for the quarter rose to USD 36.7 million.
Price History
Its total revenues and EPS have grown compared to the prior year period, while total assets and total liabilities have also increased significantly. Going forward, investors will be keeping a close eye on the company’s future performance in order to gauge its success in the coming quarters and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for OCSL. More…
| Total Revenues | Net Income | Net Margin |
| 93.24 | 84.59 | 90.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for OCSL. More…
| Operations | Investing | Financing |
| 51.22 | – | -15.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for OCSL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.34k | 1.83k | 19.58 |
Key Ratios Snapshot
Some of the financial key ratios for OCSL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -32.5% | – | – |
| FCF Margin | ROE | ROA |
| 54.9% | 3.6% | 1.6% |
Analysis
At GoodWhale, we performed an analysis of OAKTREE SPECIALTY LENDING’s wellbeing and based on our Star Chart classification, we concluded that OAKTREE SPECIALTY LENDING is a ‘cheetah’ type of company – one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be of interest to investors looking for strong dividend growth, as well as those seeking an above-average growth rate, but may not be a good choice for those seeking stability in their portfolios. Looking further into the company’s performance, we found that OAKTREE SPECIALTY LENDING is strong in dividend, medium in growth, and weak in asset and profitability. Additionally, our analysis revealed that they have an intermediate health score of 4/10 with regard to their cashflows and debt, indicating that they are likely to safely ride out any crisis without the risk of bankruptcy. More…
Peers
The company has a strong track record of delivering competitively priced financing to its clients. Its competitors, Owl Rock Capital Corp, Main Street Capital Corp, and Ares Capital Corp, are all well-established middle-market lenders. Each company has its own strengths and weaknesses, but Oaktree has consistently outperformed its competitors.
– Owl Rock Capital Corp ($NYSE:ORCC)
Owl Rock Capital Corporation is a business development company specializing in middle market, one-stop, and unitranche loans. It also invests in mezzanine, senior, and subordinated debt instruments, first and second lien loans, and equity securities. The company was founded in 2007 and is headquartered in New York, New York.
– Main Street Capital Corp ($NYSE:MAIN)
As of 2022, Main Street Capital Corporation has a market capitalization of $2.64 billion. The company is a provider of capital and financial services to businesses and investors. Main Street Capital invests primarily in lower middle market companies through equity, debt, and other securities. The company’s objective is to achieve long-term capital appreciation and current income by investing in businesses that it believes have the potential to generate superior returns.
– Ares Capital Corp ($NASDAQ:ARCC)
Ares Capital Corporation is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Ares Capital is an externally managed, non-diversified closed-end management investment company. Ares Capital’s investment objectives are to generate both current income and capital appreciation through debt and equity investments. Ares Capital invests primarily in middle market companies across a broad range of industries.
Summary
Investors should take note of the impressive financial results achieved by OAKTREE SPECIALTY LENDING in the third quarter of its 2023 fiscal year. Total revenues nearly tripled from the same quarter of the prior year, while net income rose significantly as well. This indicates that the company is performing well and is on track to continue to deliver strong growth. Investors should keep an eye on the company as its performance looks promising.
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