Blue Owl Capital (OBDC) AI Stock Analysis

• Market Cap: $6.71B
• Dividend Yield: 12.6%
• Average Volume (3M): 6.41M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.64
• Revenue Growth: 5.55%
• EPS Growth: -12.79%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.37
• Shares Outstanding: 511,048,250
• 10 Day Avg. Volume: 8,475,231
• 30 Day Avg. Volume: 6,410,734
• PEG Ratio: -0.40
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 5.36
• P/FCF Ratio: 36.81
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 12.38
• Enterprise Value/Gross Profit: 21.19
• Enterprise Value/Ebitda: 23.29
• 1Y Price Target: $14.17
• Price Target Upside: 10.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ―

Blue Owl Capital's robust financial performance and valuation are key strengths, supported by a successful merger and increased scale. However, recent revenue declines and cash flow fluctuations, along with mixed technical signals, temper the overall positive outlook.

Positive Factors

Strong Financial Performance

Consistent strong financial performance indicates robust operational efficiency and profitability, supporting long-term business sustainability.

Successful Merger and Increased Scale

The merger enhances scale and market position, providing operational synergies and improved liquidity, strengthening competitive advantage.

Increase in Direct Lending

Significant growth in direct lending expands revenue streams and solidifies market position, ensuring long-term growth potential.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth momentum, which could impact long-term financial health.

Cash Flow Fluctuations

Inconsistent cash flow generation can strain financial stability and limit the ability to fund future investments or operations.

Disappointing M&A Deal Flow

Weak M&A activity may hinder strategic growth initiatives and limit expansion opportunities, affecting long-term competitive positioning.

Blue Owl Capital Business Overview & Revenue Model

Company Description

Blue Owl Capital (OBDC) is a leading alternative asset management firm that specializes in providing capital solutions and investment strategies across various sectors, including direct lending, GP capital solutions, and real estate. The firm is renowned for its ability to deliver tailored financial services and investment products designed to meet the needs of institutional and individual investors. With a focus on long-term value creation, Blue Owl Capital leverages its deep industry expertise and extensive network to optimize investment opportunities and drive sustainable growth.

How the Company Makes Money

Blue Owl Capital makes money through a diversified revenue model that primarily includes management fees, performance-based fees, and investment income. The firm generates management fees by overseeing and managing assets for its clients across its various funds and investment vehicles. Performance-based fees are earned when the investments outperform certain benchmarks, aligning the firm's interests with those of its investors. Additionally, Blue Owl Capital earns investment income through the appreciation and returns on its proprietary investments and portfolio holdings. The firm's revenue is further supported by strategic partnerships and collaborations with financial institutions, enhancing its ability to access capital and investment opportunities.

Blue Owl Capital Financial Statement Overview

Summary

Blue Owl Capital displays a robust financial structure with strong profitability and a debt-free balance sheet in 2024. Revenue growth has been significant historically, but recent revenue decline and cash flow fluctuations highlight areas for potential improvement.

Income Statement

Blue Owl Capital demonstrates a solid gross profit margin, consistently high EBIT margins, and positive net profit margins over the years. However, there was a decline in Total Revenue from 2023 to 2024, indicating a potential concern in revenue growth. Despite this, the company has achieved significant revenue growth from 2020 to 2023.

Balance Sheet

The balance sheet reflects a strong equity position with zero debt in 2024, enhancing the stability of the company. The equity ratio is healthy, and the return on equity is positive, showing efficient use of equity. However, the company previously had a high debt-to-equity ratio, which has been resolved by eliminating debt.

Cash Flow

The cash flow analysis shows fluctuating operating cash flows, with a significant positive free cash flow in 2023 turning to a much lower free cash flow in 2024. The company has managed to maintain positive operating cash flow relative to net income, indicating operational efficiency, but the inconsistency over the recent years poses a risk to cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.10B	1.27B	808.76M	882.31M	438.92M
Gross Profit	742.36M	665.75M	864.33M	535.63M	689.66M	302.53M
EBITDA	675.54M	607.34M	810.68M	476.13M	637.50M	393.44M
Net Income	663.21M	594.98M	793.31M	466.36M	624.88M	387.74M
Balance Sheet
Total Assets	17.61B	13.87B	13.51B	13.58B	13.30B	11.30B
Cash, Cash Equivalents and Short-Term Investments	274.30M	431.77M	572.59M	348.67M	425.66M	349.07M
Total Debt	9.53B	7.46B	7.08B	7.28B	7.08B	5.29B
Total Liabilities	9.99B	7.91B	7.49B	7.70B	7.36B	5.56B
Stockholders Equity	7.61B	5.95B	6.02B	5.88B	5.94B	5.75B
Cash Flow
Free Cash Flow	1.01B	160.22M	514.37M	423.79M	-1.23B	-1.56B
Operating Cash Flow	1.01B	160.22M	514.37M	423.79M	-1.23B	-1.56B
Investing Cash Flow	357.68M	0.00	621.24M	-206.52M	0.00	0.00
Financing Cash Flow	-1.52B	-305.72M	-921.04M	-219.33M	1.32B	1.60B

Blue Owl Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OBDC, the sentiment is Positive. The current price of 12.88 is above the 20-day moving average (MA) of 12.38, above the 50-day MA of 12.66, and below the 200-day MA of 13.46, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 98.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OBDC.

Blue Owl Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	77 Outperform	$7.29B	10.51	21.41%	6.73%	9.51%	29.38%
NNI	72 Outperform	$4.69B	11.16	12.27%	0.88%	9.14%	291.99%
FCFS	71 Outperform	$6.82B	22.33	14.75%	1.01%	3.86%	28.06%
OBDC	69 Neutral	$6.71B	9.33	9.77%	12.60%	5.55%	-12.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	64 Neutral	$5.90B	10.24	27.85%	1.95%	0.59%	-1.11%
CACC	60 Neutral	$4.74B	11.38	28.14%	―	10.30%	154.64%

Blue Owl Capital Corporate Events

Blue Owl Capital Strengthens Position with Major Merger

Blue Owl Capital Corporation has completed its merger with Blue Owl Capital Corporation III, resulting in OBDC becoming the second largest publicly traded business development company by total assets. The merger, which increases OBDC’s total assets to $18.6 billion and diversifies its portfolio across 232 companies, is expected to strengthen OBDC’s market position and enhance its ability to deliver attractive risk-adjusted returns. The merger terms included an exchange of OBDE shares for OBDC shares and cash in lieu of fractional shares, with legacy OBDC shareholders owning 76% of the combined entity. This strategic move aims to leverage enhanced scale and operational efficiencies while maintaining strong credit quality.