BLUE OWL CAPITAL INC (OWL) Stock Fundamental Analysis
USA - NYSE:OWL - US09581B1035 - Common Stock
16.18 USD
+0.29 (+1.83%)
16.84 USD
+0.66 (+4.08%)
We assign a fundamental rating of 4 out of 10 to OWL. OWL was compared to 236 industry peers in the Capital Markets industry. OWL may be in some trouble as it scores bad on both profitability and health. OWL is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year OWL was profitable.
OWL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OWL reported negative net income in multiple years.
In the past 5 years OWL always reported a positive cash flow from operatings.
1.2 Ratios
OWL has a Return On Assets of 0.61%. This is in the lower half of the industry: OWL underperforms 69.92% of its industry peers.
The Return On Equity of OWL (3.21%) is worse than 68.22% of its industry peers.
OWL's Return On Invested Capital of 4.28% is in line compared to the rest of the industry. OWL outperforms 57.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OWL is below the industry average of 7.56%.
The last Return On Invested Capital (4.28%) for OWL is above the 3 year average (3.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 3.21% | ||
| ROIC | 4.28% |
ROA(3y)0.5%
ROA(5y)-13.4%
ROE(3y)2.71%
ROE(5y)N/A
ROIC(3y)3.29%
ROIC(5y)N/A
1.3 Margins
OWL has a Profit Margin of 2.88%. This is in the lower half of the industry: OWL underperforms 70.34% of its industry peers.
OWL's Profit Margin has declined in the last couple of years.
OWL's Operating Margin of 20.79% is in line compared to the rest of the industry. OWL outperforms 44.07% of its industry peers.
In the last couple of years the Operating Margin of OWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.79% | ||
| PM (TTM) | 2.88% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y15.64%
PM growth 3YN/A
PM growth 5Y-16.9%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
OWL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OWL has been increased compared to 5 years ago.
The debt/assets ratio for OWL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that OWL is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.71, OWL is doing good in the industry, outperforming 68.64% of the companies in the same industry.
OWL has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as OWL would need 3.11 years to pay back of all of its debts.
OWL's Debt to FCF ratio of 3.11 is amongst the best of the industry. OWL outperforms 80.93% of its industry peers.
OWL has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
OWL has a Debt to Equity ratio of 1.38. This is in the lower half of the industry: OWL underperforms 66.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.71 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
OWL has a Current Ratio of 0.88. This is a bad value and indicates that OWL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, OWL is doing worse than 63.14% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that OWL may have some problems paying its short term obligations.
The Quick ratio of OWL (0.88) is worse than 62.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
OWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.86%, which is quite good.
The Earnings Per Share has been growing by 26.74% on average over the past years. This is a very strong growth
OWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.80%.
Measured over the past years, OWL shows a very strong growth in Revenue. The Revenue has been growing by 64.44% on average per year.
EPS 1Y (TTM)12.86%
EPS 3YN/A
EPS 5Y26.74%
EPS Q2Q%10.53%
Revenue 1Y (TTM)31.8%
Revenue growth 3Y40.71%
Revenue growth 5Y64.44%
Sales Q2Q%24.24%
3.2 Future
OWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.08% yearly.
Based on estimates for the next years, OWL will show a very strong growth in Revenue. The Revenue will grow by 21.70% on average per year.
EPS Next Y9.52%
EPS Next 2Y16.28%
EPS Next 3Y16.66%
EPS Next 5Y18.08%
Revenue Next Year21.81%
Revenue Next 2Y22.09%
Revenue Next 3Y20.33%
Revenue Next 5Y21.7%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.48, the valuation of OWL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of OWL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.42, OWL is valued a bit cheaper.
OWL is valuated correctly with a Price/Forward Earnings ratio of 15.54.
The rest of the industry has a similar Price/Forward Earnings ratio as OWL.
The average S&P500 Price/Forward Earnings ratio is at 22.94. OWL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OWL is valued a bit cheaper than the industry average as 63.56% of the companies are valued more expensively.
OWL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 31.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as OWL's earnings are expected to grow with 16.66% in the coming years.
PEG (NY)2.15
PEG (5Y)0.77
EPS Next 2Y16.28%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
OWL has a Yearly Dividend Yield of 5.66%, which is a nice return.
In the last 3 months the price of OWL has falen by -21.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 8.51, OWL has a dividend in line with its industry peers.
OWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
5.2 History
OWL has been paying a dividend for over 5 years, so it has already some track record.
OWL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OWL pays out 610.34% of its income as dividend. This is not a sustainable payout ratio.
DP610.34%
EPS Next 2Y16.28%
EPS Next 3Y16.66%
16.18
+0.29 (+1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners94.72%
Inst Owner Change0.11%
Ins Owners0.04%
Ins Owner Change0.01%
Market Cap25.07B
Analysts81
Price Target24.32 (50.31%)
Short Float %6.27%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP610.34%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.44%
Min EPS beat(2)-9.47%
Max EPS beat(2)0.59%
EPS beat(4)1
Avg EPS beat(4)-3.68%
Min EPS beat(4)-9.47%
Max EPS beat(4)0.59%
EPS beat(8)3
Avg EPS beat(8)-1.72%
EPS beat(12)6
Avg EPS beat(12)-0.53%
EPS beat(16)9
Avg EPS beat(16)2.73%
Revenue beat(2)1
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.66%
Max Revenue beat(2)0.3%
Revenue beat(4)3
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)1.22%
Revenue beat(8)7
Avg Revenue beat(8)2.93%
Revenue beat(12)11
Avg Revenue beat(12)3.53%
Revenue beat(16)14
Avg Revenue beat(16)3.41%
PT rev (1m)0%
PT rev (3m)2.09%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 15.54 | ||
| P/S | 9.57 | ||
| P/FCF | 24.07 | ||
| P/OCF | 23 | ||
| P/B | 10.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.67 |
EPS(TTM)0.79
EY4.88%
EPS(NY)1.04
Fwd EY6.43%
FCF(TTM)0.67
FCFY4.15%
OCF(TTM)0.7
OCFY4.35%
SpS1.69
BVpS1.52
TBVpS-4.09
PEG (NY)2.15
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 3.21% | ||
| ROCE | 4.78% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.33% | ||
| ROICexgc | 22.29% | ||
| OM | 20.79% | ||
| PM (TTM) | 2.88% | ||
| GM | N/A | ||
| FCFM | 39.77% |
ROA(3y)0.5%
ROA(5y)-13.4%
ROE(3y)2.71%
ROE(5y)N/A
ROIC(3y)3.29%
ROIC(5y)N/A
ROICexc(3y)3.34%
ROICexc(5y)N/A
ROICexgc(3y)20.1%
ROICexgc(5y)N/A
ROCE(3y)3.68%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y15.64%
PM growth 3YN/A
PM growth 5Y-16.9%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 14.04% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 122.46% | ||
| Profit Quality | 1381.32% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.71 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)23.49%
Cap/Depr(5y)35.02%
Cap/Sales(3y)3.83%
Cap/Sales(5y)2.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.86%
EPS 3YN/A
EPS 5Y26.74%
EPS Q2Q%10.53%
EPS Next Y9.52%
EPS Next 2Y16.28%
EPS Next 3Y16.66%
EPS Next 5Y18.08%
Revenue 1Y (TTM)31.8%
Revenue growth 3Y40.71%
Revenue growth 5Y64.44%
Sales Q2Q%24.24%
Revenue Next Year21.81%
Revenue Next 2Y22.09%
Revenue Next 3Y20.33%
Revenue Next 5Y21.7%
EBIT growth 1Y-4.12%
EBIT growth 3YN/A
EBIT growth 5Y90.16%
EBIT Next Year21.07%
EBIT Next 3Y21.15%
EBIT Next 5YN/A
FCF growth 1Y32.11%
FCF growth 3Y50.13%
FCF growth 5Y85.23%
OCF growth 1Y29.47%
OCF growth 3Y52.52%
OCF growth 5Y86.67%