BLUE OWL CAPITAL INC (OWL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OWL - US09581B1035 - Common Stock
15.125 USD
-0.56 (-3.6%)
We assign a fundamental rating of 4 out of 10 to OWL. OWL was compared to 238 industry peers in the Capital Markets industry. OWL has a bad profitability rating. Also its financial health evaluation is rather negative. OWL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- OWL had positive earnings in the past year.
- OWL had a positive operating cash flow in the past year.
- In multiple years OWL reported negative net income over the last 5 years.
- In the past 5 years OWL always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of OWL (0.42%) is worse than 74.79% of its industry peers.
- OWL has a Return On Equity of 2.26%. This is in the lower half of the industry: OWL underperforms 69.75% of its industry peers.
- OWL has a Return On Invested Capital (3.76%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for OWL is below the industry average of 7.27%.
- The last Return On Invested Capital (3.76%) for OWL is above the 3 year average (3.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.42% | ||
| ROE | 2.26% | ||
| ROIC | 3.76% |
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
- With a Profit Margin value of 1.89%, OWL is not doing good in the industry: 73.11% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of OWL has declined.
- OWL has a Operating Margin (17.27%) which is in line with its industry peers.
- OWL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 1.89% | ||
| 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.
- OWL has more shares outstanding than it did 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 1.59, we must say that OWL is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.59, OWL is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- OWL has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as OWL would need 2.81 years to pay back of all of its debts.
- OWL's Debt to FCF ratio of 2.81 is fine compared to the rest of the industry. OWL outperforms 79.83% of its industry peers.
- A Debt/Equity ratio of 1.41 is on the high side and indicates that OWL has dependencies on debt financing.
- OWL has a Debt to Equity ratio of 1.41. This is in the lower half of the industry: OWL underperforms 69.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 1.59 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.71 indicates that OWL may have some problems paying its short term obligations.
- With a Current ratio value of 0.71, OWL is not doing good in the industry: 65.55% of the companies in the same industry are doing better.
- OWL has a Quick Ratio of 0.71. This is a bad value and indicates that OWL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of OWL (0.71) is worse than 65.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.46% over the past year.
- The Earnings Per Share has been growing by 26.74% on average over the past years. This is a very strong growth
- Looking at the last year, OWL shows a very strong growth in Revenue. The Revenue has grown by 27.24%.
- The Revenue has been growing by 64.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)9.46%
EPS 3YN/A
EPS 5Y26.74%
EPS Q2Q%10%
Revenue 1Y (TTM)27.24%
Revenue growth 3Y40.71%
Revenue growth 5Y64.44%
Sales Q2Q%20.88%
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 14.17% yearly.
- The Revenue is expected to grow by 16.06% on average over the next years. This is quite good.
EPS Next Y8.29%
EPS Next 2Y13.76%
EPS Next 3Y15.04%
EPS Next 5Y14.17%
Revenue Next Year22.76%
Revenue Next 2Y20.93%
Revenue Next 3Y19.17%
Revenue Next 5Y16.06%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.67 indicates a rather expensive valuation of OWL.
- OWL's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of OWL to the average of the S&P500 Index (27.30), we can say OWL is valued slightly cheaper.
- OWL is valuated correctly with a Price/Forward Earnings ratio of 15.18.
- The rest of the industry has a similar Price/Forward Earnings ratio as OWL.
- OWL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
- 65.55% of the companies in the same industry are more expensive than OWL, based on the Enterprise Value to EBITDA ratio.
- OWL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OWL is cheaper than 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| EV/EBITDA | 32.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- OWL's earnings are expected to grow with 15.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)0.7
EPS Next 2Y13.76%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
- OWL has a Yearly Dividend Yield of 5.70%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.10, OWL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, OWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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 973.75% of its income as dividend. This is not a sustainable payout ratio.
DP973.75%
EPS Next 2Y13.76%
EPS Next 3Y15.04%
BLUE OWL CAPITAL INC / OWL FAQ
What is the fundamental rating for OWL stock?
ChartMill assigns a fundamental rating of 4 / 10 to OWL.
Can you provide the valuation status for BLUE OWL CAPITAL INC?
ChartMill assigns a valuation rating of 4 / 10 to BLUE OWL CAPITAL INC (OWL). This can be considered as Fairly Valued.
Can you provide the profitability details for BLUE OWL CAPITAL INC?
BLUE OWL CAPITAL INC (OWL) has a profitability rating of 3 / 10.
What is the financial health of BLUE OWL CAPITAL INC (OWL) stock?
The financial health rating of BLUE OWL CAPITAL INC (OWL) is 2 / 10.
Can you provide the dividend sustainability for OWL stock?
The dividend rating of BLUE OWL CAPITAL INC (OWL) is 5 / 10 and the dividend payout ratio is 973.75%.