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Oaktree Specialty Lending has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Oaktree Specialty Lending Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Oaktree Specialty Lending's interest coverage with the available data.
Oaktree Specialty Lending's debt to revenue ratio for the quarter that ended in Jun. 2026 was 10.41.
Altman Z-Score does not apply to banks and insurance companies.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Oaktree Specialty Lending has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Oaktree Specialty Lending Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Oaktree Specialty Lending (FRA:FFC) has a Financial Strength of 2 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Oaktree Specialty Lending and its competitors. This is 50% below median its historical median of 4.00. Over the past decade, Oaktree Specialty Lending's Financial Strength has ranged from 2.00 to 6.00.
Is Oaktree Specialty Lending's Financial Strength too high?
Oaktree Specialty Lending's current Financial Strength of 2 is 50% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Oaktree Specialty Lending has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Oaktree Specialty Lending's Financial Strength compare to CHY and ETW?
Oaktree Specialty Lending's Financial Strength of 2 can be compared against companies in the Asset Management industry. Historically, Oaktree Specialty Lending's own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Asset Management company?
A good Financial Strength depends on the Asset Management industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Oaktree Specialty Lending and its competitors. Oaktree Specialty Lending's current Financial Strength is 2, which is 50% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oaktree Specialty Lending stock overvalued right now?
Based on GuruFocus' analysis, Oaktree Specialty Lending (FRA:FFC) is currently considered Fairly Valued. The stock's GF Value™ is €10.56, compared to a current price of €11.22 — trading 6.3% above its estimated fair value. The current Financial Strength is 2, which is 50% below median its 10-year median of 4.00. Oaktree Specialty Lending's overall GF Score™ is 52/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Oaktree Specialty Lending (FRA:FFC), the current Financial Strength is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Oaktree Specialty Lending (FRA:FFC) Overvalued in 2026?
Based on GuruFocus' analysis, Oaktree Specialty Lending stock appears to be overvalued.
The current stock price of €11.22 is trading 6.3% above its estimated GF Value™ of €10.56.
GuruFocus considers Oaktree Specialty Lending to be Fairly Valued.
Key valuation signals for FRA:FFC:
Financial Strength: 2 (50% below median its 10-year median of 4.00)
GF Value™: €10.56 vs. price of €11.22 (6.3% above fair value)
No single metric tells the full story. See the FRA:FFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oaktree Specialty Lending Corp is a specialty finance company. The company provides lending services and invests in small and mid-sized companies. The company's investment objective is to maximize its portfolio's total return by generating current income from debt investments, and to a lesser extent, capital appreciation from equity investments. The company provides customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. The company operates as a single reportable segment and derives revenues from investing in originated loans and other securities, including broadly syndicated loans, of U.S. private companies and manages the business on a consolidated basis.
52GF Score
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