Investment Thesis
Carlyle Secured Lending is currently unprofitable with net losses and deteriorating diluted EPS (-36.1% YoY), indicating operational headwinds in the lending portfolio despite modest net income improvement. While strong operating cash flow of $212.4M and reasonable 1.24x debt/equity provide some financial stability, the absence of profitability visibility and accelerating per-share value destruction present elevated downside risk.
Strengths
- Strong operating cash flow of $212.4M supports debt service and potential distributions despite net losses
- Balanced capital structure with 1.24x debt/equity ratio and positive stockholders equity of $1.1B reduces solvency risk
- Asset base of $2.6B with retained earnings cushion provides resilience for loan portfolio absorption
Risks
- Negative profitability with -$4.2M net income and -0.4% ROE indicates poor capital deployment and portfolio performance deterioration
- Diluted EPS collapsed 36.1% YoY despite net income improvement, signaling severe shareholder dilution and value destruction
- Low cash position of $97.2M relative to $1.4B debt and $2.6B assets limits flexibility for portfolio stress or covenant violations
Key Metrics to Watch
- Time to profitability and quarterly net income trend
- Portfolio credit quality metrics including delinquency and charge-off rates
- Diluted share count trend and total shareholder return sustainability
Financial Metrics
Revenue
N/A
Net Income
-4.2M
EPS (Diluted)
$-0.06
Free Cash Flow
212.4M
Total Assets
2.6B
Cash
97.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-0.4%
ROA
-0.2%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.24x
Debt/Assets
56.3%
Interest Coverage
N/A
Long-term Debt
1.4B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-12T08:19:47.065256 |
Data as of: 2026-03-31 |
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