BLUE OWL CAPITAL INC (OWL) Stock Fundamental Analysis
NYSE:OWL - New York Stock Exchange, Inc. - US09581B1035 - Common Stock - Currency: USD
Taking everything into account, OWL scores 4 out of 10 in our fundamental rating. OWL was compared to 231 industry peers in the Capital Markets industry. Both the profitability and financial health of OWL have multiple concerns. OWL shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year OWL was profitable.
In the past year OWL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OWL reported negative net income in multiple years.
OWL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OWL (1.00%) is worse than 67.97% of its industry peers.
With a Return On Equity value of 5.15%, OWL is not doing good in the industry: 61.04% of the companies in the same industry are doing better.
The Return On Invested Capital of OWL (6.10%) is better than 74.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OWL is below the industry average of 7.13%.
The last Return On Invested Capital (6.10%) for OWL is above the 3 year average (3.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 5.15% | ||
| ROIC | 6.1% |
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 worse Profit Margin (4.77%) than 69.70% of its industry peers.
In the last couple of years the Profit Margin of OWL has declined.
OWL has a Operating Margin (29.68%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.68% | ||
| PM (TTM) | 4.77% | ||
| 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
The number of shares outstanding for OWL has been increased compared to 1 year ago.
Compared to 5 years ago, OWL has more shares outstanding
Compared to 1 year ago, OWL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.17 indicates that OWL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.17, OWL is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
The Debt to FCF ratio of OWL is 2.77, which is a good value as it means it would take OWL, 2.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.77, OWL is doing good in the industry, outperforming 79.22% of the companies in the same industry.
A Debt/Equity ratio of 1.22 is on the high side and indicates that OWL has dependencies on debt financing.
OWL has a Debt to Equity ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.73 indicates that OWL may have some problems paying its short term obligations.
The Current ratio of OWL (0.73) is worse than 67.10% of its industry peers.
OWL has a Quick Ratio of 0.73. This is a bad value and indicates that OWL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, OWL is not doing good in the industry: 67.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.93% over the past year.
OWL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.74% yearly.
The Revenue has grown by 32.56% in the past year. This is a very strong growth!
The Revenue has been growing by 64.44% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)14.93%
EPS 3YN/A
EPS 5Y26.74%
EPS Q2Q%0%
Revenue 1Y (TTM)32.56%
Revenue growth 3Y40.71%
Revenue growth 5Y64.44%
Sales Q2Q%23.59%
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.
OWL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.70% yearly.
EPS Next Y17.72%
EPS Next 2Y19.17%
EPS Next 3Y16.99%
EPS Next 5Y18.08%
Revenue Next Year26.61%
Revenue Next 2Y23.28%
Revenue Next 3Y19.92%
Revenue Next 5Y21.7%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 23.18, OWL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of OWL indicates a slightly more expensive valuation: OWL is more expensive than 62.34% of the companies listed in the same industry.
OWL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
With a Price/Forward Earnings ratio of 16.32, OWL is valued correctly.
OWL's Price/Forward Earnings ratio is in line with the industry average.
OWL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
64.50% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.54 | ||
| EV/EBITDA | 32.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as OWL's earnings are expected to grow with 16.99% in the coming years.
PEG (NY)1.31
PEG (5Y)0.87
EPS Next 2Y19.17%
EPS Next 3Y16.99%
5. Dividend
5.1 Amount
OWL has a Yearly Dividend Yield of 4.89%, which is a nice return.
In the last 3 months the price of OWL has falen by -24.24%. 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 8.44, 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 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 336.12% of its income as dividend. This is not a sustainable payout ratio.
DP336.12%
EPS Next 2Y19.17%
EPS Next 3Y16.99%
17.85
-0.61 (-3.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change0.68%
Ins Owners0.09%
Ins Owner Change0.04%
Market Cap27.63B
Analysts80
Price Target23.94 (34.12%)
Short Float %4.8%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP336.12%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.91%
Min EPS beat(2)-3.29%
Max EPS beat(2)-2.52%
EPS beat(4)1
Avg EPS beat(4)-1.47%
Min EPS beat(4)-3.29%
Max EPS beat(4)2.01%
EPS beat(8)3
Avg EPS beat(8)-0.74%
EPS beat(12)6
Avg EPS beat(12)0.96%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.21%
Max Revenue beat(2)1.22%
Revenue beat(4)4
Avg Revenue beat(4)1.82%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.08%
Revenue beat(8)8
Avg Revenue beat(8)3.77%
Revenue beat(12)11
Avg Revenue beat(12)3.68%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-14.36%
PT rev (3m)-12.33%
EPS NQ rev (1m)-4.24%
EPS NQ rev (3m)-8.59%
EPS NY rev (1m)-1.95%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 16.32 | ||
| P/S | 12.04 | ||
| P/FCF | 29.54 | ||
| P/OCF | 27.64 | ||
| P/B | 12.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.43 |
EPS(TTM)0.77
EY4.31%
EPS(NY)1.09
Fwd EY6.13%
FCF(TTM)0.6
FCFY3.39%
OCF(TTM)0.65
OCFY3.62%
SpS1.48
BVpS1.37
TBVpS-3.54
PEG (NY)1.31
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 5.15% | ||
| ROCE | 6.8% | ||
| ROIC | 6.1% | ||
| ROICexc | 6.19% | ||
| ROICexgc | 32.86% | ||
| OM | 29.68% | ||
| PM (TTM) | 4.77% | ||
| GM | N/A | ||
| FCFM | 40.75% |
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-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 23.35% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 104.54% | ||
| Profit Quality | 853.56% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.17 |
F-Score7
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)14.93%
EPS 3YN/A
EPS 5Y26.74%
EPS Q2Q%0%
EPS Next Y17.72%
EPS Next 2Y19.17%
EPS Next 3Y16.99%
EPS Next 5Y18.08%
Revenue 1Y (TTM)32.56%
Revenue growth 3Y40.71%
Revenue growth 5Y64.44%
Sales Q2Q%23.59%
Revenue Next Year26.61%
Revenue Next 2Y23.28%
Revenue Next 3Y19.92%
Revenue Next 5Y21.7%
EBIT growth 1Y105.72%
EBIT growth 3YN/A
EBIT growth 5Y90.16%
EBIT Next Year26.34%
EBIT Next 3Y21.7%
EBIT Next 5YN/A
FCF growth 1Y6.14%
FCF growth 3Y50.13%
FCF growth 5Y85.23%
OCF growth 1Y5.31%
OCF growth 3Y52.52%
OCF growth 5Y86.67%