Blue Owl Capital (OWL) AI Stock Analysis

• Market Cap: $18.81B
• Dividend Yield: 5.45%
• Average Volume (3M): 13.06M
• Price to Earnings (P/E): 269.1
• Beta (1Y): 1.74
• Revenue Growth: 27.24%
• EPS Growth: -59.82%
• Country: US
• Employees: 1,200
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.24
• Shares Outstanding: 664,802,000
• 10 Day Avg. Volume: 21,342,750
• 30 Day Avg. Volume: 13,059,202
• PEG Ratio: 1.75
• Price to Book (P/B): 6.00
• Price to Sales (P/S): 5.56
• P/FCF Ratio: 13.65
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 14.97
• Enterprise Value/Ebitda: 27.96
• 1Y Price Target: $20.41
• Price Target Upside: 69.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $13.00 ▲(7.79% Upside)

The score is supported primarily by healthy financial performance driven by strong cash flow and improving gross margin, alongside a positive earnings outlook anchored by record fundraising and a sizable pipeline of fee-eligible AUM. This is tempered by very weak technical momentum and a demanding valuation (high P/E), with leverage and rate-sensitivity risks also limiting the overall score.

Positive Factors

Strong cash generation

Sustained free cash flow growth and an operating cash flow to net income ratio near 2.0 provide durable internal funding. This strengthens the firm's ability to pay distributions, fund new investments, and support strategic initiatives without relying on volatile external financing over the medium term.

Record fundraising and fee pipeline

Historic fundraising and a large fee-eligible AUM pipeline create a multi-quarter revenue tailwind. Contracted commitments and undeployed AUM that will convert to management fees underpin predictable, scalable fee revenue and improve forward fee-related earnings visibility.

Digital infrastructure leadership

Major investments and partnerships in data centers position the firm amid secular cloud and AI growth. This deepens differentiated deal flow, creates long-duration real assets and fee diversification, supporting more stable long-term revenue streams and competitive advantage.

Negative Factors

Elevated leverage

A 1.65 debt-to-equity ratio signals meaningful leverage that reduces financial flexibility. In an asset manager with credit and real-asset exposures, elevated debt amplifies downside risk, increases interest expense sensitivity, and can constrain capital allocation during stressed market conditions.

Thin net profitability

Despite strong gross margins, net margin under 2% points to high operating or structural costs and limits retained earnings. Low net profitability reduces the firm's capacity to reinvest, absorb losses, or grow distributable earnings, constraining durable shareholder value creation.

Fee sensitivity & step-downs

Contractual fee step-downs and meaningful sensitivity to interest-rate moves make management fee revenue volatile. Given the firm's reliance on fee income, these structural exposures can materially reduce fee-related earnings and distributable cash in a lower-rate or step-down environment.

Blue Owl Capital Business Overview & Revenue Model

Company Description

Blue Owl Capital Inc. operates as an asset manager. It offers permanent capital base solutions that enables it to offer a holistic platform to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; GP capital solutions products, which offers capital solutions, including GP minority equity investments, GP debt financing, and professional sports minority investments to large private capital managers; and real estate products that focuses on structuring sale-leaseback transactions, which includes triple net leases. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. The company is headquartered in New York, New York.

How the Company Makes Money

Blue Owl Capital generates revenue primarily through management fees and performance fees associated with its investment funds. Management fees are typically calculated as a percentage of assets under management (AUM), providing a steady income stream as the company grows its investment portfolio. Performance fees, often referred to as carried interest, are earned when the funds exceed a predetermined return threshold, aligning the company's interests with those of its investors. Additionally, Blue Owl Capital may benefit from advisory fees and transaction fees related to its investment activities. Strategic partnerships with financial institutions and other asset managers further enhance its investment capabilities and broaden its market reach, contributing to overall revenue growth.

Blue Owl Capital Financial Statement Overview

Summary

Solid operating trends are led by strong cash generation (free cash flow growth 10.34% TTM; operating cash flow to net income 1.88) and improving gross margin (65.52% TTM). Offsetting this, profitability remains thin (net margin 1.89%) and leverage is elevated (debt-to-equity 1.65), which increases risk if conditions weaken.

Income Statement

Blue Owl Capital has shown consistent revenue growth, with a TTM revenue growth rate of 4.85%. The gross profit margin has improved over the years, reaching 65.52% in the TTM, indicating efficient cost management. However, the net profit margin remains low at 1.89%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have decreased compared to previous years, reflecting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.65 in the TTM, indicating higher leverage, which could pose a risk if not managed properly. The return on equity is modest at 2.28%, showing limited profitability relative to shareholder equity. Despite this, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Blue Owl Capital has demonstrated strong cash flow performance, with a free cash flow growth rate of 10.34% in the TTM. The operating cash flow to net income ratio is high at 1.88, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.96, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.75B	2.30B	1.73B	1.37B	823.88M	249.81M
Gross Profit	1.46B	1.28B	860.97M	475.04M	-673.11M	9.08M
EBITDA	780.38M	866.04M	632.65M	269.67M	-1.73B	-58.05M
Net Income	51.91M	109.58M	54.34M	-9.29M	-376.17M	-77.83M
Balance Sheet
Total Assets	12.47B	10.99B	8.82B	8.89B	8.27B	121.60M
Cash, Cash Equivalents and Short-Term Investments	137.28M	152.09M	104.16M	68.08M	42.57M	11.63M
Total Debt	3.78B	2.98B	2.00B	1.86B	1.26B	356.39M
Total Liabilities	6.29B	5.19B	3.54B	3.34B	2.42B	622.76M
Stockholders Equity	2.30B	2.13B	1.53B	1.60B	1.66B	-507.69M
Cash Flow
Free Cash Flow	1.15B	935.37M	881.24M	662.91M	276.40M	4.58M
Operating Cash Flow	1.20B	999.55M	949.14M	728.45M	281.66M	5.23M
Investing Cash Flow	-329.95M	-638.14M	-118.03M	-485.22M	-1.60B	-652.00K
Financing Cash Flow	-845.87M	-313.48M	-795.03M	-217.72M	1.35B	-295.00K

Blue Owl Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OWL, the sentiment is Negative. The current price of 12.06 is below the 20-day moving average (MA) of 14.81, below the 50-day MA of 15.19, and below the 200-day MA of 17.10, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 21.37 is Positive, neither overbought nor oversold. The STOCH value of 9.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OWL.

Blue Owl Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BX	70 Outperform	$163.94B	34.60	35.78%	3.02%	33.12%	19.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KKR	67 Neutral	$93.39B	44.00	8.73%	0.56%	-33.80%	-24.81%
ARES	66 Neutral	$44.85B	56.07	18.64%	2.65%	50.70%	7.32%
OWL	65 Neutral	$18.81B	269.11	2.41%	5.45%	27.24%	-59.82%
CG	59 Neutral	$21.04B	32.42	11.85%	2.30%	-24.62%	437.16%
TPG	58 Neutral	$21.21B	556.78	7.19%	3.03%	25.02%	235.70%

Blue Owl Capital Corporate Events

Blue Owl Capital Launches $1.7 Billion Infrastructure Fund

On December 1, 2025, Blue Owl Capital‘s digital infrastructure-focused evergreen vehicle held its first close at approximately $1.7 billion, marking the commencement of its operations. From October 1 to December 1, 2025, the company raised an estimated $4.3 billion across its evergreen non-traded products, surpassing the $3.4 billion raised in the third quarter of 2025, indicating a strong market position and growth in its credit and real assets platforms.

The most recent analyst rating on (OWL) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Blue Owl Capital stock, see the OWL Stock Forecast page.

Blue Owl Capital Sees $200 Million in Stock Purchases

During November, Blue Owl Capital and its subsidiaries saw over $200 million in stock purchases, with $70 million in Blue Owl’s Class A common stock and $135 million in OBDC and OTF shares. These transactions, including executive purchases and repurchase plans, highlight the company’s commitment to aligning with clients and stakeholders, reinforcing its market position.

The most recent analyst rating on (OWL) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Blue Owl Capital stock, see the OWL Stock Forecast page.