Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sixth Street Specialty Lending's annualized net income for the quarter that ended in Mar. 2026 was $-104.1 Mil. Sixth Street Specialty Lending's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,575.2 Mil. Therefore, Sixth Street Specialty Lending's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -6.61%.
The historical rank and industry rank for Sixth Street Specialty Lending's Return-on-Tangible-Equity or its related term are showing as below:
TSLX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.73 Med: 13.1 Max: 17.38
Current: 6.73
During the past 13 years, Sixth Street Specialty Lending's highest Return-on-Tangible-Equity was 17.38%. The lowest was 6.73%. And the median was 13.10%.
TSLX's Return-on-Tangible-Equity is ranked worse than 51.7% of 1588
companies
in the Asset Management industry
Industry Median: 7.205
vs TSLX: 6.73
Sixth Street Specialty Lending (NYSE:TSLX) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sixth Street Specialty Lending Return-on-Tangible-Equity Related Terms
Sixth Street Specialty Lending Return-on-Tangible-Equity Historical Data
* 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.
Sixth Street Specialty Lending Return-on-Tangible-Equity Chart
TSLX vs BCAT, BDJ, BST: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Sixth Street Specialty Lending's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sixth Street Specialty Lending Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Sixth Street Specialty Lending's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sixth Street Specialty Lending's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -6.61% mean?
Sixth Street Specialty Lending (TSLX) has a Return-on-Tangible-Equity of -6.61% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sixth Street Specialty Lending and its competitors. Over the past decade, Sixth Street Specialty Lending's Return-on-Tangible-Equity has ranged from 6.73 to 17.38. According to the industry distribution chart, Sixth Street Specialty Lending ranks #821 out of 1588 companies in the Asset Management industry, placing it in the top 51.7%.
Is Sixth Street Specialty Lending's Return-on-Tangible-Equity too high?
Sixth Street Specialty Lending's current Return-on-Tangible-Equity is -6.61%. Over the past 10 years, this metric has ranged from a low of 6.73 to a high of 17.38. Based on the distribution chart, Sixth Street Specialty Lending ranks #821 out of 1588 companies in the Asset Management industry, which is below the industry midpoint. Overall, Sixth Street Specialty Lending has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sixth Street Specialty Lending's Return-on-Tangible-Equity compare to BCAT and BDJ?
According to the Asset Management industry distribution chart, Sixth Street Specialty Lending ranks #821 out of 1588 companies for Return-on-Tangible-Equity. This places Sixth Street Specialty Lending in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Historically, Sixth Street Specialty Lending's own Return-on-Tangible-Equity has ranged from 6.73 to 17.38 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 Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,588 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sixth Street Specialty Lending and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sixth Street Specialty Lending's current Return-on-Tangible-Equity is -6.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sixth Street Specialty Lending stock overvalued right now?
Based on GuruFocus' analysis, Sixth Street Specialty Lending (TSLX) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.59, compared to a current price of $17.29 — trading 37.3% above its estimated fair value. The current Return-on-Tangible-Equity is -6.61%. Sixth Street Specialty Lending's overall GF Score™ is 53/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sixth Street Specialty Lending (TSLX), the current Return-on-Tangible-Equity is -6.61% as of Mar. 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 Sixth Street Specialty Lending (TSLX) Overvalued in 2026?
Based on GuruFocus' analysis, Sixth Street Specialty Lending stock appears to be overvalued.
The current stock price of $17.29 is trading 37.3% above its estimated GF Value™ of $12.59.
GuruFocus considers Sixth Street Specialty Lending to be Significantly Overvalued.
Key valuation signals for TSLX:
Return-on-Tangible-Equity: -6.61%
GF Value™: $12.59 vs. price of $17.29 (37.3% above fair value)
No single metric tells the full story. See the TSLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sixth Street Specialty Lending Business Description
Sixth Street Specialty Lending Inc is a specialty finance company focused on providing flexible, fully committed financing solutions to middle market companies located in the United States of America. The company partners with other companies across a variety of industries and provides creative solutions with complex business models that may have limited access to capital. The company seeks to generate current income in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.
53GF Score
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