Blue Owl Capital (OWL) AI Stock Analysis

• Market Cap: $25.33B
• Dividend Yield: 5.26%
• Average Volume (3M): 15.28M
• Price to Earnings (P/E): 360.9
• Beta (1Y): 1.77
• Revenue Growth: 27.24%
• EPS Growth: -59.82%
• Country: US
• Employees: 1,200
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.22
• Shares Outstanding: 664,802,000
• 10 Day Avg. Volume: 10,864,429
• 30 Day Avg. Volume: 15,276,809
• 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: 0.75
• Enterprise Value/Revenue: 6.89
• Enterprise Value/Gross Profit: 10.52
• Enterprise Value/Ebitda: 27.76
• 1Y Price Target: $22.00
• Price Target Upside: 35.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $2.64B

• Rating: 65 Neutral
• Price Target: $16.00 ▼(-1.48% Downside)

Blue Owl Capital's overall stock score is driven by strong earnings call performance and strategic growth initiatives. However, high leverage, low profitability margins, and a bearish technical outlook weigh on the score. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides some offset.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Cash Flow Performance

Strong cash flow performance enhances financial flexibility, allowing for reinvestment and debt management, crucial for sustaining growth.

Digital Infrastructure Expansion

Investments in digital infrastructure position Blue Owl as a leader in cloud and AI financing, tapping into growing tech trends.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term sustainability if not managed well.

Low Profitability Margins

Low profitability margins suggest challenges in converting revenue into profit, which could hinder long-term growth and investor returns.

Merger Termination

The termination of the merger reflects strategic challenges and could indicate difficulties in achieving planned synergies and growth.

Blue Owl Capital Business Overview & Revenue Model

Company Description

Blue Owl Capital (OWL) is a leading investment firm specializing in direct lending and private equity. The company primarily focuses on providing capital solutions to middle-market companies across various sectors, including technology, healthcare, and consumer products. Blue Owl Capital offers a range of financial products, including private credit and equity investments, tailored to meet the unique needs of its clients. With a robust investment strategy and a dedicated team of professionals, the firm aims to deliver strong returns for its investors while supporting the growth of the businesses it finances.

How the Company Makes Money

Blue Owl Capital generates revenue primarily through interest income from its direct lending activities and management fees from its private equity investments. The company makes money by charging interest on the loans it provides to middle-market companies, which typically have higher yields compared to traditional fixed-income investments. Additionally, Blue Owl collects management fees based on the assets under management (AUM) in its private equity funds. These fees are usually calculated as a percentage of the committed capital or AUM. The firm's revenue is further bolstered by potential performance fees tied to the successful outcomes of its investments. Key partnerships with financial institutions and access to a diverse network of borrowers also enhance Blue Owl's ability to generate revenue and expand its investment portfolio.

Blue Owl Capital Financial Statement Overview

Summary

Blue Owl Capital shows a positive growth trajectory with strong revenue and cash flow performance. However, profitability margins and increasing leverage pose potential risks. The company needs to focus on improving net profitability and managing debt levels to sustain long-term growth.

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	1.80B	1.28B	860.97M	475.04M	-673.11M	9.08M
EBITDA	681.91M	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: Neutral
• Last Price: 16.24
• 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 OWL, the sentiment is Neutral. The current price of 16.24 is above the 20-day moving average (MA) of 14.76, above the 50-day MA of 15.59, and below the 200-day MA of 17.81, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 93.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OWL.

Blue Owl Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BX	71 Outperform	$185.60B	43.64	35.17%	3.08%	33.12%	19.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KKR	67 Neutral	$115.36B	55.14	8.73%	0.56%	-33.80%	-24.81%
OWL	65 Neutral	$25.33B	360.89	2.41%	5.26%	27.24%	-59.82%
ARES	64 Neutral	$54.08B	70.49	18.64%	2.59%	50.70%	7.32%
TPG	61 Neutral	$23.32B	643.95	7.19%	3.21%	25.02%	235.70%
CG	59 Neutral	$20.29B	31.04	11.85%	2.45%	-24.62%	437.16%

Blue Owl Capital Corporate Events

Blue Owl Capital’s Earnings Call Highlights Robust Growth

Blue Owl Capital’s recent earnings call highlighted a robust sentiment of growth and strategic advancement across its investment platforms, particularly in digital infrastructure and direct lending. Despite facing some challenges like fee rate step-downs and sensitivity to rate cuts, the firm demonstrated a positive trajectory with record capital commitments and impressive fundraising achievements.

Blue Owl Capital Reports Record Fundraising and Growth

Blue Owl Capital Inc. is a prominent asset manager specializing in alternative investments across Credit, Real Assets, and GP Strategic Capital, with a robust permanent capital base and a global team of over 1,365 professionals.

Blue Owl Capital Declares Cash Dividend for Q4 2025

On October 30, 2025, Blue Owl Capital Inc. announced a cash dividend of $0.225 per Class A Share, payable on November 24, 2025, to shareholders of record as of November 10, 2025. The company reported strong financial results for the third quarter of 2025, with new capital commitments reaching $14 billion in the quarter and $57 billion over the past twelve months, reflecting robust interest in its investment strategies. This performance underscores Blue Owl’s strategic focus on innovation and economic growth sectors like Digital Infrastructure, enhancing its market position and offering substantial scale and expertise to its partners.

The most recent analyst rating on (OWL) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Blue Owl Capital stock, see the OWL Stock Forecast page.