Blue Owl Capital (OWL) AI Stock Analysis

• Market Cap: $28.79B
• Dividend Yield: 4.82%
• Average Volume (3M): 7.06M
• Price to Earnings (P/E): 188.0
• Beta (1Y): 1.70
• Revenue Growth: 32.99%
• EPS Growth: 8.06%
• Country: US
• Employees: 1,200
• Sector: Financial
• Sector Strength: 74
• Industry: Asset Management
• EPS (TTM): 0.17
• Shares Outstanding: 625,652,400
• 10 Day Avg. Volume: 7,002,614
• 30 Day Avg. Volume: 7,064,172
• PEG Ratio: 5.05
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.93
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: $23.62
• Price Target Upside: 26.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 72 Outperform
• Price Target: $21.00 ▲(12.48%Upside)

Blue Owl Capital's strong earnings call performance and robust financials drive a positive outlook, despite technical indicators suggesting caution and high valuation concerns. The company's strategic initiatives and growth in fee-related earnings bolster its position, although vigilance is warranted due to global expansion risks and market volatility.

Positive Factors

Financial Performance

Firmwide AUM increased 7% sequentially to $251B, while fundraising was robust, totaling a record $9.5B of new equity capital.

Growth Opportunities

Blue Owl is set to deliver industry leading growth over the next five years, and there is strong conviction around where the business is headed longer term.

Market Position

OWL's global retail distribution effort is a leader, with a strong focus on expanding in Asia.

Negative Factors

Acquisitions and Margins

Potential headwind for OWL includes mergers and acquisitions which may bring lower margins in acquired companies.

Competition

Bank deregulation could increase competition in the private credit market, impacting investment-grade markets.

Industry Challenges

Despite slower industrywide M&A activity, credit deployment was healthy, but Real Estate performance was more muted, totaling ~0%.

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 makes money through its diversified revenue streams across its core segments: Direct Lending, GP Capital Solutions, and Real Estate. In Direct Lending, the company generates income by providing loans to middle-market companies, earning interest and fees on these lending facilities. The GP Capital Solutions segment involves providing capital to private equity managers, with revenue generated through management fees and performance-based incentives. In the Real Estate segment, Blue Owl Capital earns money by managing real estate investments and collecting management fees and potential performance fees. Additionally, the firm benefits from strategic partnerships and a broad investor base, which contribute significantly to its earnings through asset management fees and investment returns.

Blue Owl Capital Financial Statement Overview

Summary

Blue Owl Capital exhibits robust revenue growth and profitability, with strong operational margins and efficient cash flow generation. The balance sheet is stable, but there is room for improvement in return on equity. Overall, the financial position is solid with opportunities for enhanced profitability.

Income Statement

Blue Owl Capital has shown significant revenue growth, with a revenue increase from $1.36 billion in 2022 to $2.47 billion in TTM (Trailing-Twelve-Months). Its gross profit margin improved to 51.0% in TTM, indicating strong cost management. The net profit margin at 4.9% shows profitability, although it could be improved further. The EBIT margin of 18.5% and EBITDA margin of 26.9% are solid, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.18 in TTM, suggesting low leverage risk. The equity ratio stands at 19.0%, indicating a moderate level of financial stability. However, the return on equity (ROE) of 5.2% could be more robust, reflecting room for improvement in generating returns on equity.

Cash Flow

The cash flow statement shows strong operating cash flow of $969.9 million in TTM, with a high operating cash flow to net income ratio of 8.0, indicating efficient cash generation. The free cash flow to net income ratio is an impressive 7.4, demonstrating robust cash flow relative to earnings. However, the free cash flow growth rate has slightly declined, suggesting a need for consistent cash flow improvement.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.47B	2.30B	1.73B	1.37B	823.88M	249.81M
	Gross Profit
1.26B	1.02B	860.97M	475.04M	-673.11M	9.08M
	EBIT
455.46M	606.76M	317.82M	-2.48M	-927.27M	-58.73M
	EBITDA
662.07M	866.04M	632.65M	269.67M	-1.73B	-58.05M
	Net Income Common Stockholders
121.16M	109.58M	54.34M	-9.29M	-376.17M	-77.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.62M	152.09M	104.16M	68.08M	42.57M	11.63M
	Total Assets
12.29B	10.99B	8.82B	8.89B	8.27B	121.60M
	Total Debt
3.60B	2.98B	2.00B	1.86B	1.26B	356.39M
	Net Debt
3.50B	2.83B	1.90B	1.80B	1.22B	344.76M
	Total Liabilities
5.86B	5.19B	3.54B	3.34B	2.42B	622.76M
	Stockholders Equity
2.34B	2.13B	1.53B	1.60B	1.66B	-507.69M
Cash Flow		Free Cash Flow
898.51M	935.37M	881.24M	662.91M	276.40M	4.58M
	Operating Cash Flow
969.89M	999.55M	949.14M	728.45M	281.66M	5.23M
	Investing Cash Flow
-834.37M	-638.14M	-118.03M	-485.22M	-1.60B	-652.00K
	Financing Cash Flow
-193.66M	-313.48M	-795.03M	-217.72M	1.35B	-295.00K

Blue Owl Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.67 is below the 20-day moving average (MA) of 18.81, above the 50-day MA of 18.39, and below the 200-day MA of 20.68, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 22.17 is Neutral, 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
BLK	78 Outperform	$150.15B	23.54	14.37%	2.13%	11.73%	4.76%
CG	73 Outperform	$17.00B	15.90	20.38%	2.97%	81.86%	―
OWL	72 Outperform	$28.79B	188.02	4.62%	4.82%	32.99%	8.06%
ARES	71 Outperform	$54.65B	96.72	12.97%	2.68%	19.02%	-22.75%
BX	68 Neutral	$166.81B	41.59	34.07%	2.71%	22.06%	16.57%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
TPG	63 Neutral	$18.45B	―	0.24%	3.28%	46.69%	-98.56%

Blue Owl Capital Corporate Events

Blue Owl Capital Holds Annual Stockholders Meeting

On June 9, 2025, Blue Owl Capital Inc. held its annual meeting of stockholders where key decisions were made regarding the company’s governance and financial oversight. The stockholders elected Class I directors for three-year terms, ratified the appointment of KPMG LLP as the independent registered public accounting firm for the 2025 fiscal year, and approved executive compensation for the 2024 fiscal year. Additionally, a three-year frequency for future advisory votes on executive compensation was established.

The most recent analyst rating on (OWL) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Blue Owl Capital stock, see the OWL Stock Forecast page.

Blue Owl Capital Appoints Jennifer Brouse to Board

On March 26, 2025, Blue Owl Capital Inc. appointed Jennifer Brouse to its Board of Directors, filling the vacancy left by Sean Ward’s resignation. Brouse, who is already a Managing Director and Chief Operating Officer at Blue Owl, will not receive additional compensation for her new role. This appointment was made under the terms of the Investor Rights Agreement, highlighting the company’s ongoing strategic alignment with its equity holders.