Blue Owl Capital Inc.
Blue Owl Capital Inc. Fundamental Analysis
Blue Owl Capital Inc. (OWL) shows weak financial fundamentals with a PE ratio of 84.61, profit margin of 2.75%, and ROE of 3.43%. The company generates $6.6B in annual revenue with strong year-over-year growth of 32.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OWL's fundamental strength across five key dimensions:
Efficiency Score
WeakOWL struggles to generate sufficient returns from assets.
Valuation Score
WeakOWL trades at a premium to fair value.
Growth Score
ExcellentOWL delivers strong and consistent growth momentum.
Financial Health Score
WeakOWL carries high financial risk with limited liquidity.
Profitability Score
WeakOWL struggles to sustain strong margins.
Key Financial Metrics
Is OWL Expensive or Cheap?
P/E Ratio
OWL trades at 84.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OWL's PEG of 2.17 indicates potential overvaluation.
Price to Book
The market values Blue Owl Capital Inc. at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.50 times EBITDA. This signals the market has high growth expectations.
How Well Does OWL Make Money?
Net Profit Margin
For every $100 in sales, Blue Owl Capital Inc. keeps $2.75 as profit after all expenses.
Operating Margin
Core operations generate 21.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.43 in profit for every $100 of shareholder equity.
ROA
Blue Owl Capital Inc. generates $0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Blue Owl Capital Inc. generates strong operating cash flow of $2.91B, reflecting robust business health.
Free Cash Flow
Blue Owl Capital Inc. generates strong free cash flow of $2.77B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.77 in free cash annually.
FCF Yield
OWL converts 7.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
84.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How OWL Stacks Against Its Sector Peers
| Metric | OWL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 84.61 | 19.05 | Worse (Expensive) |
| ROE | 3.43% | 820.00% | Weak |
| Net Margin | 2.75% | 1618.00% | Weak |
| Debt/Equity | 1.75 | 1.00 | Weak (High Leverage) |
| Current Ratio | 0.28 | 657.68 | Weak Liquidity |
| ROA | 0.63% | -24974.00% (disorted) | Weak |
OWL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Blue Owl Capital Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
601.05%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
178.22%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1222.22%
Industry Style: Value, Dividend, Cyclical
High Growth