Blackstone Secured Lending Fund (BXSL) Stock Analysis and Metrics

Sector: Financial Services Industry: Asset Management CIK: 0001736035

Market Cap 5.48 Bn

P/B 8.67

P/E 9.14

P/S 3.88

ROIC (Qtr) 7.98

Div Yield % 3.18

Rev 1y % (Qtr) 4.47

Total Debt (Qtr) 7.66 Bn

Debt/Equity (Qtr) 1.22

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About

Blackstone Secured Lending Fund (BXSL) is a Delaware statutory trust operating as a non-diversified, closed-end management investment company in the business development company (BDC) sector, listed under the Investment Company Act of 1940. Its primary business activities revolve around generating current income and long-term capital appreciation through investments in secured debt instruments, specifically first lien senior secured and unitranche loans. The Trust is externally managed by Blackstone Credit BDC Advisors LLC. BXSL's operations are...

Blackstone Secured Lending Fund (BXSL) is a Delaware statutory trust operating as a non-diversified, closed-end management investment company in the business development company (BDC) sector, listed under the Investment Company Act of 1940. Its primary business activities revolve around generating current income and long-term capital appreciation through investments in secured debt instruments, specifically first lien senior secured and unitranche loans. The Trust is externally managed by Blackstone Credit BDC Advisors LLC.

BXSL's operations are centered on investments in private companies based in the United States, primarily targeting larger and middle market firms. Its investment strategy is geared towards "good neighborhoods," or industries that are currently experiencing favorable tailwinds, such as life sciences, software & technology, and renewable energy. To ensure the success of each investment opportunity, the company employs a multi-stage selection process combined with ongoing monitoring, especially focusing on early detection of deteriorating credit conditions at portfolio companies.

The company's revenue is generated through its investment activities, which are managed by Blackstone Credit BDC Advisors LLC. The Adviser's responsibilities include originating prospective investments, conducting research and due diligence investigations, analyzing investment opportunities, negotiating and structuring investments, and monitoring portfolio companies on an ongoing basis.

Blackstone Secured Lending Fund maintains a competitive edge in the industry due to its ability to provide scale, differentiated capital solutions, and value-added capital provider and partner leveraging the Blackstone Credit & Insurance Value Creation Program. The company's flexible investment approach, long-term investment horizon, disciplined investment process, and income-oriented investment philosophy further strengthen its competitive position.

BXSL's customers include private companies, leveraged buyout sponsors, financial advisors, and intermediaries. Portfolio companies are primarily located in the United States and mainly consist of larger and middle market firms.

Some of the brand names and/or trade names of its products and services include the Blackstone Secured Lending Fund and Blackstone Credit BDC Advisors LLC.

BXSL's investment strategy is designed to maximize current income and minimize the risk of capital loss while maintaining the potential for long-term capital appreciation. The company's experienced investment professionals, disciplined investment process, and flexible investment approach provide a competitive edge in the private credit investment space.

Investment thesis

Bull case

Tangible assets of 14.26B provide robust 501.59x coverage of receivables 28.42M, showing strong asset quality.

Bear case

Operating cash flow of (1.13B) provides thin coverage of dividend payments of (663.03M) with a 1.71 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Operating cash flow of (1.13B) provides minimal -57.93x coverage of tax expenses of 19.56M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
Operating cash flow of (1.13B) barely covers operating expenses of 4.87M with a -232.72 ratio, suggesting thin operational efficiency margins and limited flexibility.
Free cash flow of (1.13B) represents just -0.93x of debt issuance 1.22B, suggesting concerning reliance on leverage rather than internal cash generation for growth.
Operating cash flow of (1.13B) is outpaced by equity issuance of 650.75M (-1.74 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Asset Management

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	BLK	BlackRock, Inc.	199.59 Bn	85.40	21.98	15.04 Bn
2	BN	BROOKFIELD Corp /ON/	103.94 Bn	31.52	5.64	262.97 Bn
3	AMP	Ameriprise Financial Inc	88.69 Bn	55.02	7.20	5.89 Bn
4	BX	Blackstone Inc.	88.51 Bn	49.39	10.93	12.89 Bn
5	KKR	KKR & Co. Inc.	55.86 Bn	28.33	13.23	53.12 Bn
6	STT	State Street Corp	46.52 Bn	21.77	3.91	34.72 Bn
7	NTRS	Northern Trust Corp	34.14 Bn	33.31	6.71	15.64 Bn
8	RJF	Raymond James Financial Inc	32.89 Bn	37.63	4.14	5.10 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.86	0.94
EV to Cash from Ops. EV/CFO	-10.86	41.10
EV to Debt EV to Debt	1.61	15.28
EV to EBIT EV/EBIT	12.40	23.47
EV to EBITDA EV/EBITDA	10.93	47.80
EV to Free Cash Flow [EV/FCF] EV/FCF	-10.86	38.62
EV to Market Cap EV to Market Cap	2.24	7.81
EV to Revenue EV/Rev	8.70	27.38
Price to Book Value [P/B] P/B	8.67	2.34
Price to Earnings [P/E] P/E	9.14	11.81

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	0.90	4.66
Dividend Payout Ratio % Div Payout % (Qtr)	116.20	-5.56
Dividend per Basic Share Div per Share (Qtr)	3.08	1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	-62.65	49.83
Interest Coverage Int. cover (Qtr)	2.66	25.16

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex Growth (1y) %	0.00	-35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	28.69	15.43
Dividend Growth (1y) % Div 1y % (Qtr)	0.00	1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-2.46	-90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	10.95	35.24
EBIT Growth (1y) % EBIT 1y % (Qtr)	-1.41	-22.13
EBT Growth (1y) % EBT 1y % (Qtr)	-12.00	-163.05
EPS Growth (1y) % EPS 1y % (Qtr)	-26.39	-20.61
FCF Growth (1y) % FCF 1y % (Qtr)	35.28	220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	10.94	-53.96

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.10	0.22
Cash Payout Ratio Cash Payout (Qtr)	-0.59	0.36
Cash Ratio Cash Ratio	0.00	0.38
Current Ratio Current Ratio	0.00	0.86
Debt to Equity Ratio Debt/Equity (Qtr)	1.22	0.70
Interest Cover Ratio Int Coverage (Qtr)	2.66	25.16
Times Interest Earned Times Interest Earned (Qtr)	2.66	25.16

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	70.10	-114.76
EBIT Margin % EBIT Margin % (Qtr)	70.14	-127.24
EBT Margin % EBT Margin % (Qtr)	43.81	-150.97
Gross Margin % Gross Margin % (Qtr)	80.60	67.88
Net Profit Margin % Net Margin % (Qtr)	42.40	-148.68

Research Tools

Blackstone Secured Lending Fund (NYSE: BXSL)

About

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

Research Tools

Blackstone Secured Lending Fund (NYSE: BXSL)

About

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

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