Blue Owl Technology Finance Corp. Common Stock (OTF)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for a margin of safety and a business that can endure. Blue Owl Technology Finance is a business development company lending to and investing in technology and software firms. On price, the close on 2026-10-13 was $9.14. FairStock calculations put it at 11.15 times earnings, 0.55 times book, with a Graham Number of $17.44 and a margin of safety of 47.59%. That is an asset-play setup: buying assets at roughly half of reported book. The 13.22% dividend yield is attractive if covered. But the financials give me pause. In fiscal FY2023, the period ended 2023-12-31, net income was $369.1M and diluted EPS was $1.80. In fiscal FY2024, the period ended 2024-12-31, net income was $319.2M and diluted EPS was $1.52. In fiscal FY2025, the period ended 2025-12-31, net income rebounded to $720.4M, but in fiscal Q1 2026, the quarter ended 2026-03-31, there was a net loss of $219.9M and diluted EPS of -$0.47; in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $154.2M and diluted EPS was $0.33. That is a volatile stream, not a steady one. FairStock's ROE is only 4.83%, ROCE 4.29%, and the Piotroski F-Score is 4/9. Debt-to-equity is 0.95, Altman Z-Score is 0.35, and trailing free cash flow is -$2.1B, a -50.9% FCF yield. A high dividend with negative cash flow can be dangerous. The moat is modest: lending to tech and software companies is competitive and cyclical. The discount to book is real, but without durable earnings and positive cash flow, it may stay a value trap. I would want evidence that book value is sound and the dividend is covered before trusting the discount.

In plain English: Blue Owl Technology Finance Corp. lends money to and invests in technology and software companies. Its recent results have been uneven, with a loss in one quarter and a profit in another, and the business is not generating positive cash flow. The stock price looks low compared with the company's stated asset value and earnings, but the high dividend and weak cash flow mean the cheapness comes with real risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer