Blue Owl Capital Inc. Class A Common Stock (OWL)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $1.4 billion in annual free cash flow (21.5% yield on market cap)
• Revenue growth of 19.7% demonstrates strong top-line momentum
• Attractive 9.6% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($3) with negative 241% margin of safety—limited downside protection
• Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Blue Owl Capital Inc. Class A Common Stock is a small-cap financial services company valued at $6.3 billion. The business generates $2.9 billion in annual revenue with a 1.7% net margin and $1.4 billion in free cash flow. From a quality standpoint, Blue shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.5 warrants caution. On valuation, the stock is commanding a steep 94.2x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 19.7% and profit growth of 129.8%. The 9.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Blue's 20% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $1.4 billion in annual free cash flow (21.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 94x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer