Blue Owl Technology Finance Corp. Fundamental Analysis (NYSE: OTF)
Blue Owl Technology Finance Corp. Fundamental Analysis (NYSE: OTF)
Blue Owl Technology Finance Corp. (NYSE: OTF) shows strong financial fundamentals with a PE ratio of 8.57, profit margin of 27.20%, and ROE of 4.80%. The company generates $1.4B in annual revenue with strong year-over-year growth of 99.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OTF's fundamental strength across five key dimensions:
Efficiency Score
WeakOTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOTF trades at attractive valuation levels.
Growth Score
ExcellentOTF delivers strong and consistent growth momentum.
Financial Health Score
ModerateOTF shows balanced financial health with some risks.
Profitability Score
WeakOTF struggles to sustain strong margins.
Key Financial Metrics
Is OTF Expensive or Cheap?
P/E Ratio
OTF trades at 8.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OTF's PEG of -0.21 indicates potential undervaluation.
Price to Book
The market values Blue Owl Technology Finance Corp. at 0.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.96 times EBITDA. This is generally considered low.
How Well Does OTF Make Money?
Net Profit Margin
For every $100 in sales, Blue Owl Technology Finance Corp. keeps $27.20 as profit after all expenses.
Operating Margin
Core operations generate 48.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.80 in profit for every $100 of shareholder equity.
ROA
Blue Owl Technology Finance Corp. generates $2.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Blue Owl Technology Finance Corp. generates limited operating cash flow of $-303.74M, signaling weaker underlying cash strength.
Free Cash Flow
Blue Owl Technology Finance Corp. generates weak or negative free cash flow of $-303.74M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.66 in free cash annually.
FCF Yield
OTF converts -5.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How OTF Stacks Against Its Sector Peers
| Metric | OTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.57 | 21.19 | Better (Cheaper) |
| ROE | 4.80% | 657.00% | Weak |
| Net Margin | 27.20% | -1592.00% (disorted) | Strong |
| Debt/Equity | 0.95 | 0.90 | Neutral |
| Current Ratio | 0.00 | 910.00 | Weak Liquidity |
| ROA | 2.49% | 4466981.00% | Weak |
OTF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Blue Owl Technology Finance Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
209.93%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
190.14%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
677.61%
Industry Style: Value, Dividend, Cyclical
High Growth