Overall Score

Revenue Model

OCSL generates income primarily from interest on its debt investments, with TTM revenue per share of 3.17 and a price-to-sales ratio of 4.09.

The business continues to support a high dividend yield of 11.88%, indicating a yield-driven income model.

Profitability

TTM gross margin remains strong at 80.5%, with EBIT margin at 52.7% and EBITDA margin at 70.0%, showing solid spread capture on investments.

Net margin is 15.1% and ROIC is 4.1%, but overall returns remain modest for the capital base.

Balance Sheet

Liquidity is strong with a current ratio of 3.92 and quick ratio of 3.92, supporting near-term obligations.

Leverage remains meaningful with debt-to-equity at 1.04 and net debt to EBITDA at 7.16, while interest coverage is only 1.20x.

Cash Flow

OCSL shows solid cash generation with operating cash flow per share of 1.73 and free cash flow per share of 1.73.

Free cash flow yield is 13.36% and price-to-free-cash-flow is 7.48, indicating healthy cash return relative to valuation.

Competitive Position

The company benefits from a specialized credit-investing platform and strong asset coverage, with book value per share of 15.70 and price-to-book of 0.83.

However, the model remains sensitive to credit performance and financing costs given the modest interest coverage and elevated leverage.