Blue Owl Capital (OBDC) Stock Overview
A business development company. More details
| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
OBDC Community Fair Values
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Analyst Price Targets
Top Analyst Narratives
US$14.5
FV
25.5% undervalued intrinsic discount1.15%
Revenue growth p.a.
92
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Blue Owl Capital Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$10.80 |
| 52 Week High | US$15.19 |
| 52 Week Low | US$10.52 |
| Beta | 0.67 |
| 1 Month Change | -2.09% |
| 3 Month Change | -3.91% |
| 1 Year Change | -24.79% |
| 3 Year Change | -20.24% |
| 5 Year Change | -24.58% |
| Change since IPO | -30.28% |
Recent News & Updates
Recent updates
Seeking Alpha • Jun 13
Blue Owl Capital: This BDC Has More Downside Risks (Rating Downgrade)
Summary Blue Owl Capital is downgraded to a sell due to persistent earnings declines, thin dividend coverage, and limited new investment activity. OBDC trades at a steep 22.5% discount to NAV, yet lacks near-term growth catalysts and faces ongoing NAV deterioration. The portfolio's heavy software exposure and elevated risk from AI disruption raise concerns about future non-accruals and earnings stability. Despite a high 11.3% yield, OBDC's dividend was cut 16%, with coverage barely matching net investment income and further downside risk looming. Read the full article on Seeking AlphaSeeking Alpha • Mar 06
This 10% Yield Can Be One Of Your Biggest Winners In Retirement: Blue Owl
Summary We've been calling Blue Owl Capital Corporation top-notch before it was cool to do so. In that time, we've collected mounds of income. You can, too. I find wonderful income in the market and share my research with you almost every day. Read the full article on Seeking AlphaSeeking Alpha • Feb 24
Blue Owl Capital: This Hefty Yield Gets No Respect
Summary Blue Owl Capital Corp. offers a compelling investment opportunity with a well-covered 9.6% regular yield and a 10.9% total dividend yield. OBDC's portfolio is conservatively managed, heavily weighted towards first-lien senior secured loans, and has a high return on equity. The company benefits from extensive financial sponsor relationships, cost synergies from a recent merger, and a solid credit profile. Trading at just a 1% premium to book value, OBDC is attractively valued, making it a solid choice for income and value investors. Read the full article on Seeking AlphaSeeking Alpha • Jan 24
Blue Owl Capital: You Can Trust This Top BDC's Double Digit Yield
Summary Blue Owl Capital Corporation is a well-run BDC with a strong portfolio. The firm's recent merger with Blue Owl's other entity, OBDE, should improve the combined company's size, portfolio quality, and deal flow. We believe OBDC's dividend is well covered by strong NII, and noise around the company's portfolio 'Fair Value' can be ignored. Trading at a reasonable price, we think OBDC is a great choice for income investors seeking double digit yields and principal protection. We rate OBDC a 'Buy'. Read the full article on Seeking AlphaSeeking Alpha • Jan 16
Blue Owl Capital: Overhyped BDC With Mediocre Performance
Summary Blue Owl Capital Corp and Blue Owl Capital Corporation III are new entrants in the BDC market, which is favorable for fixed-income investments. Despite being newcomers, only six out of around 50 publicly traded BDCs have been operating since before the 2007 recession. The investment thesis highlights the potential of Blue Owl Capital in a market with few long-standing players. The article suggests Blue Owl Capital's entry into the BDC market could offer new opportunities for retail investors seeking fixed-income investments. Read the full article on Seeking AlphaSeeking Alpha • Dec 31
Why I'm Buying Blue Owl Capital Corp. III Over Blue Owl Capital In This Merger Arbitrage Opportunity
Summary Blue Owl Capital Corporation and Blue Owl Capital Corporation III may be losing deal share as the numbers and narratives show subdued new investment activity; which is unusual given ARCC's positive developments in this regard. A dovish rates environment can put pressure on investment yields and net investment income for the OBDC + OBDE portfolio. OBDC is trading at near cyclical peak valuations vs peers, making buys in that less attractive. But my merger arbitrage math says there may be a small edge in buying OBDE over OBDC. OBDE vs SPX 500 also shows a bullish breakout after a descending triangle squeeze. Hence, I am bullish on OBDE. Relative valuations of OBDE vs OBDC is a key risk monitorable for my view. Read the full article on Seeking AlphaSeeking Alpha • Dec 19
Blue Owl Capital: The Ultimate Value With A Rare 11%+ Yield
Summary Blue Owl Capital offers an attractive 11%+ safe dividend yield, supported by a robust business model and efficient management. The company excels in Credit, GP Strategic Capital, and Real Estate, benefiting from the growing alternative investment space and strategic acquisitions. Blue Owl’s focus on permanent capital vehicles ensures stable fee-earning assets, with 90%+ of management fees from these sources, reducing market volatility impact. Despite potential economic and regulatory risks, Blue Owl's diverse business mix and strategic growth initiatives position it well for future profitability and shareholder value. Read the full article on Seeking AlphaSeeking Alpha • Nov 30
Blue Owl Capital: 9.7% Yield And 127% Dividend Coverage Make It A Buy
Summary Blue Owl Capital offers a well-diversified, conservatively managed portfolio with a high level of senior secured investments, making it attractive for income-focused investors. Recent Q3 results show solid performance with strong portfolio growth, robust dividend coverage, and a healthy balance sheet supported by manageable leverage and liquidity. The upcoming merger with OBDE is expected to drive cost synergies, NAV accretion, and NII growth, positioning OBDC for continued strength. OBDC trades at a reasonable Price-to-NAV ratio of 1.0x, offering a compelling high yield with a 9.7% regular dividend and potential 11% total yield. Read the full article on Seeking AlphaSeeking Alpha • Nov 20
10% Yields, Blue Chip BDC: Blue Owl Capital
Summary Stop selling your assets to retire, let your assets pay you instead! Flip the script on the classic retirement formula and find more success than before. BDCs provide essential liquidity to the U.S. economy while rewarding shareholders. Read the full article on Seeking AlphaSeeking Alpha • Nov 10
Blue Owl Capital: Attractive 12% Yield
Summary Blue Owl Capital Corporation offers a compelling 12% dividend yield with strong coverage and trades below net asset value, making it an attractive income pick. The company primarily invests in low-risk, floating-rate, senior-secured debt, with a well-diversified portfolio across over 200 companies and 30 industries. Internal risk ratings have improved, with over 90% of investments in top performance categories, indicating a positive trend in portfolio quality. Trading at a slight discount to net asset value and focusing on safer first-lien debt investments, OBDC presents a relatively attractive investment opportunity. Read the full article on Seeking AlphaSeeking Alpha • Oct 09
Blue Owl Capital Looks More Interesting After Earnings And The Merger Proposal
Summary Blue Owl Capital is undervalued, trading below NAV, and has strong NII, making it an attractive income play with a nearly 10% dividend yield. The proposed merger with OBDE is bullish, potentially making OBDC the 2nd largest BDC, enhancing diversification, and reducing costs. OBDC's portfolio is robust, with a high percentage of senior secured debt and a strong asset yield, ensuring stability and growth. In a lower-rate environment, OBDC's borrowing costs will decline, boosting margins and increasing origination opportunities, making it a promising investment. Read the full article on Seeking AlphaSeeking Alpha • Sep 30
Blue Owl Capital: Taking A Pause On This High Yielder
Summary Blue Owl Capital Corporation offers an attractive dividend yield of over 11% with strong dividend coverage, but caution is advised due to high PIK income and declining NIM. The portfolio quality remains robust, with over 81% of investments in Grade 2 and a reduction in higher-risk investments, signaling stable credit quality. OBDC's dividend is well-covered by net investment income, boasting a coverage ratio of nearly 130%, providing reassurance despite a slight decline in NIM. Read the full article on Seeking AlphaSeeking Alpha • Sep 08
Blue Owl Capital: Sound BDC With Adverse Strategic Setting
Summary In my previous article on OBDC I outlined a conservative thesis, identifying several bottlenecks for continued earnings growth. So far OBDC has performed below the market, where even its merger with OBDE have not caused material / positive reaction by the market. Meanwhile, the core fundamentals have remained stable and the dividend coverage is still one of the best in the BDC sector. In this article I dissect the recent news of the merger and Q2, 2024 earnings deck, explaining in detail why I have kept a neutral view on OBDC. Read the full article on Seeking AlphaSeeking Alpha • Aug 29
Blue Owl Capital: Ignore The Pessimism And Focus On Its High Yields
Summary Blue Owl Capital investors endured a difficult summer as the stock underperformed the S&P 500. OBDC faces interest rate headwinds as the Fed is expected to reduce rates from September 2024. Its merger with OBDE is expected to increase scale and efficiencies, bolstering its competitive advantage. OBDC is valued attractively and supported by a highly attractive dividend yield. I explain why investors focusing on the NII growth headwinds have turned too pessimistic, affording long-term investors a solid buying opportunity. Read the full article on Seeking AlphaSeeking Alpha • Aug 21
Unlock 10% Yields Before The Merger: Blue Owl Capital
Summary BDCs are expected to struggle in recessions, but they grow via mergers and acquisitions. OBDC is one of the largest publicly traded BDCs, and it's about to get even bigger. Reduce retirement worries with the sweet balm of income pouring in. Read the full article on Seeking AlphaSeeking Alpha • Aug 14
Blue Owl Capital's 10% Yield: Finally A Buy (Rating Upgrade)
Summary Blue Owl Capital Corporation is a well-managed BDC with a First Lien-focus and excess dividend coverage, raising dividends and paying special dividends. Stock offers a high-quality 10% dividend yield and is selling at a 7% discount to net asset value. Consider OBDC for passive income portfolio due to First Lien-focus, strong originations, and excess dividend coverage. Read the full article on Seeking AlphaSeeking Alpha • Jul 28
Blue Owl Capital: There Are 2 Fundamental Showstoppers
Summary Blue Owl Capital is the third largest BDC with an investment policy that exhibits the right defensive characteristics to deliver solid returns. Since 2022, OBDC has outperformed the overall BDC market as well as the two other Top 3 BDC peers. Given this, the conservative investment policy a slight discount to NAV, my initial thought was that OBDC should be a clear buy. However, assessing the fundamentals more thoroughly, I came to a different conclusion. In this article, I explain why, in my humble opinion, investors should view OBDC with an extra caution. Read the full article on Seeking AlphaSeeking Alpha • Jun 23
Blue Owl Capital: Misunderstood Pessimism With A Highly Attractive Yield
Summary Blue Owl BDC investors suffered near-term downside as the market possibly priced in a potentially more dovish Fed. A more challenging lending environment could also hamper OBDC's earnings growth trajectory. OBDC remains well-poised to navigate a higher-for-longer Fed. OBDC's market leadership positions it well to compete even as spreads could narrow further. I explain why OBDC's uptrend bias has remained intact, defended by a highly attractive dividend yield. Read on. Read the full article on Seeking AlphaSeeking Alpha • May 23
Smart Retirement: 8.9% Income From Blue Owl Capital
Summary Earning a premium status comes with many benefits. Investors are starting to wake up to Blue Owl's quality. We keep on collecting outstanding income. Read the full article on Seeking AlphaSeeking Alpha • May 06
Blue Owl Capital: Adding More Before Earnings Due To High Growth
Summary Blue Owl Capital Corporation has a high-quality portfolio construction and strong net investment income growth. OBDC's current dividend yield of 8.6% is well-covered and has room to grow. OBDC recently raised its dividend by over 5% and has the potential for additional supplemental distributions in this high-interest rate environment. Non-accruals remain low at 1.1%, making this one of the most well put together BDCs out there. Read the full article on Seeking AlphaSeeking Alpha • Apr 15
Blue Owl Capital: Improved Special Dividend Potential After CPI Report (Rating Upgrade)
Summary Blue Owl Capital has a considerable amount of floating-rate loans in its debt portfolio and a low payout ratio. The central bank may delay rate cuts or forgo them altogether in 2024 due to worse-than-anticipated inflation figures. OBDC could benefit from a higher-for-longer rate environment and has the potential for stronger net investment income growth. Read the full article on Seeking AlphaSeeking Alpha • Mar 31
Blue Owl Capital: Dirt Cheap BDC Leader Offering High Yields (Upgrade)
Summary Blue Owl Capital Corporation underperformed the S&P 500 year-to-date. OBDC management increased its base dividend, underscoring confidence in its sustained portfolio performance. OBDC's attractive dividend yields should attract income investors as interest rates peak. I argue why the leading BDC is still dirt cheap, supporting its ongoing rally. Read the full article on Seeking AlphaSeeking Alpha • Mar 06
Blue Owl Capital: 10% Yield For Income Investors
Summary Blue Owl Capital reported strong fourth-quarter results, beating net investment income expectations. The BDC's portfolio performed well, with only a slight change in non-accrual percentage. OBDC raised its dividend to $0.37 per share. The dividend is very well-supported with cash flow from a first-lien-heavy investment portfolio. Shares of the BDC can be scooped up below net asset value. Read the full article on Seeking AlphaSeeking Alpha • Feb 18
Blue Owl Capital Stock: 5 Reasons Why It's Retiree-Friendly With A 9.5% Yield
Summary Retirees benefit from sustainable high dividend yields as they reduce the sequence of returns risk and also can enhance a retiree's lifestyle. Blue Owl Capital Corporation offers a retiree-friendly dividend yield of 9.5%. We examine five reasons why. We also look at two big headwinds facing the BDC sector this year and why OBDC is better positioned than most of its peers to face these risks. Read the full article on Seeking AlphaSeeking Alpha • Feb 02
Blue Owl I Vs. III: Why You Should Give A Hoot
Summary Blue Owl Capital Corporation is as established BDC managed by Blue Owl Inc. A new BDC, Blue Owl Capital Corporation III, has been listed by the same manager. We examine the remarkable similarities and tell you why they should be on your radar. Read the full article on Seeking AlphaSeeking Alpha • Jan 16
Blue Owl BDC: No Bubble But Better Don't Chase (Downgrade)
Summary Blue Owl BDC is a leading business development company. Bullish investors who ignored the pessimism have outperformed the S&P 500 over the past year. The most anticipated recession in 2023 didn't play out, allowing OBDC to close its valuation bifurcation against its net asset value per share. With a forward dividend yield of 11%, it remains attractively priced for income investors. However, I explain why it's worthwhile to allow OBDC to take a breather after a significant surge if you are careful about its performance from a total return perspective. Read the full article on Seeking AlphaSeeking Alpha • Jan 09
Blue Owl Capital: New Year's Resolution To Buy More Income
Summary Blue Owl Capital is a large BDC with a well-diversified portfolio and a track record of preserving and growing its NAV per share. OBDC benefits from an elevated interest rate environment and has raised its regular dividend by 13% over the past 12 months. At present, it offers a high dividend yield, a discount to NAV, and continued opportunities to grow, making it an attractive investment. Read the full article on Seeking AlphaSeeking Alpha • Jan 03
Blue Owl Capital: A Prudent Way To Ride The BDC Exposure And Access 9.5% Yield
Summary Private credit and BDCs are expected to benefit from recent dynamics in the capital markets and conventional banking sector. Blue Owl Capital Corporation is a top BDC with a stable dividend yield of 9.5% and a strong layer of non-cyclicality. In this article, I highlight three reasons why OBDC is set to deliver stable streams of dividend income and why the growth prospects seem very solid here. Read the full article on Seeking AlphaSeeking Alpha • Dec 27
Blue Owl Capital: Time To Sell This BDC (Downgrade)
Summary Blue Owl Capital's stock price has caught up to its net asset value, prompting a downgrade from Hold to Sell. Headwinds such as limited re-rating potential and slower net investment income growth in a low-rate environment pose risks. The company's aggressive floating-rate investment posture and potential interest rate cuts in 2024 further diminish its appeal. Read the full article on Seeking AlphaSeeking Alpha • Dec 19
Blue Owl Capital: A Rising Star In The Private Credit And Direct Lending Arena
Summary Blue Owl Capital Corporation is the largest publicly traded business development company focused on senior secured loans for U.S. middle market companies. The company's investment strategy emphasizes capital preservation, consistent income generation, and low correlation to traditional markets. Blue Owl Capital has demonstrated strong financial performance, with consistent growth in assets under management and a high return on investments. The company offers an attractive 10.7% dividend yield, which will increase by 6% quarter-over-quarter in Q4 2023. Read the full article on Seeking AlphaSeeking Alpha • Dec 14
Blue Owl Capital: This 11% Yielding Cash Cow Deserves A NAV Premium
Summary Blue Owl Capital is the second-largest BDC in the industry, with a market cap of $5.8B. The company focuses on middle-market loans and employs a successful first lien strategy. Blue Owl returns a ton of cash to shareholders and the regular distribution may grow going forward. Just like Ares Capital, Blue Owl could trade at a premium to NAV. Read the full article on Seeking AlphaSeeking Alpha • Nov 21
Blue Owl Capital: Another Dividend Hike For This 11.7% Yielding BDC
Summary Blue Owl Capital Corp. has delivered a +3.6% total NAV return in Q3, extending its strong performance. OBDC targets borrowers in the upper middle-market space, with top sectors including software, insurance, and healthcare. The company outperformed the median BDC in its coverage by 7% over the past year, with a +15% total NAV return. OBDC continues to trade at a discount valuation to the sector. Read the full article on Seeking AlphaSeeking Alpha • Nov 07
Blue Owl Capital On The Cusp Of Technical Pivot Ahead Of Earnings Release
Summary Blue Owl Capital Corporation is expected to release Q3 2023 earnings post-market on November 8, 2023. The company's performance in Q2 2023 was strong, with record Net Investment Income and increased dividends, showcasing its financial health. Technical analysis suggests a potential upward breakout in the stock price, supported by historical price movements and bullish patterns. Read the full article on Seeking AlphaSeeking Alpha • Oct 08
Better 10%+ Yield: Blue Owl Capital Corp Or Oaktree Specialty Lending?
Summary BDCs have proven to be valuable portfolio diversifiers in a rising rate environment for income investors. We compare two of the cheaper and more defensively positioned BDCs. We offer our take on each one's strengths and weaknesses relative to each other. Read the full article on Seeking AlphaSeeking Alpha • Sep 18
Blue Owl Capital: Solid 9.8% Yield, But Risks Are Up (Downgrade)
Summary Blue Owl Capital Corporation has the potential to raise its dividend due to improved dividend coverage. The company saw a decline in portfolio quality in the second quarter, leading to a downgrade to hold. Despite the decline in credit quality, OBDC reported an increase in net asset value and is trading at a discount to NAV. Read the full article on Seeking AlphaSeeking Alpha • Aug 30
Blue Owl BDC: High Yield Opportunity Doesn't Lie, Grab More While It's Cheap
Summary Blue Owl Capital Corporation investors who ignored the doom and gloom calls in late 2022 have seen their investment perform admirably. OBDC focuses on middle-market companies and has benefited from the rapid increase in interest rates. But investors should consider potential peaking in rates. Despite that, OBDC's "A" valuation grade suggests earnings growth headwinds are likely priced in, indicating further room for upside. I provide the argument on why OBDC investors who sat out its recovery should wait no longer as it moves toward its early 2022 highs. Maintain Buy on OBDC's high yield opportunity. Read the full article on Seeking AlphaSeeking Alpha • Jul 30
Blue Owl BDC: 9-11% Yield, Insider Buying, 7% Discount, Record Earnings
Summary OBDC's regular dividend yields 9.36%, and its latest special distribution yields 1.7%. It had record NII/Share in Q1 '23. It's now priced at a 7% discount to NAV/share, with continued insider buying. Read the full article on Seeking AlphaSeeking Alpha • Jul 03
Owl Rock Capital: Cash Flow Is King
Summary ORCC has seen a growth in its book value per share since the dip in 2020 and is benefitting from the higher interest rate environment. The company is well-positioned to take advantage of middle-market lending opportunities, with $1.7 billion in liquidity and a sound debt-to-equity ratio. Given its attractive 9.8% dividend yield and discount to NAV, ORCC is potentially a great choice for high-income investors. Read the full article on Seeking AlphaSeeking Alpha • Jun 26
Owl Rock: Dip Buyers Shouldn't Miss This Bargain
Summary Owl Rock Capital suffered volatility last week, which some investors could link to its impending name change. Despite negative reporting by the financial media, I don't expect material risks to arise from the change. ORCC buyers who braved the pessimism since its lows in October 2022 have been duly rewarded. The recent banking crisis has also provided the impetus to the direct lending space, benefiting leading players like Owl Rock. With ORCC still priced at a wide discount against its historical valuation, dip buyers shouldn't miss the recent pullback. Read the full article on Seeking AlphaSeeking Alpha • Jun 13
Owl Rock Capital: Third Straight Quarter Of Outperformance For This 11.5% - Yielding BDC
Summary We discuss quarterly results from BDC Owl Rock Capital Corp and highlight key income dynamics of the portfolio. The company delivered a strong 3.6% total NAV return for the quarter, marking its third straight quarter of outperformance. Both net income and NAV increased while non-accruals remain low. We allocated to the company earlier in the year and its relative and absolute valuation has increased since then, making it a Hold at current levels. Read the full article on Seeking AlphaSeeking Alpha • Jun 01
My 2 High Yield Buys For June
Summary Owl Rock Capital Corporation and VICI Properties Inc. are recognized as solid investments with yields over 5% and positive prospects. VICI has diversified its business, with 50 properties and 11 tenants across 15 states and a Canadian province, while ORCC has a wide range of diversification among its portfolio. Both stocks are rated as buys, with ORCC trading below net asset value and VICI trading well below its 52-week high. Read the full article on Seeking AlphaSeeking Alpha • May 23
Owl Rock: This 10% Yielder Is More Than Just Meets The Eye
Summary Due to higher net investment income in 1Q-23, YoY, Owl Rock’s dividend pay-out ratio fell to 73%. Owl Rock's portfolio is growing even though originations have declined amid higher capital costs. Net asset value discount implies a high margin of safety. Read the full article on Seeking AlphaSeeking Alpha • Feb 22
Owl Rock Capital NII of $0.41 beats by $0.01, total investment income of $350.5M beats by $11.11M
Owl Rock Capital press release (NYSE:ORCC): Q4 NII of $0.41 beats by $0.01. Total investment income of $350.5M (+24.5% Y/Y) beats by $11.11M. Net asset value per share increased to $14.99 compared to $14.85 as of September 30, 2022Seeking Alpha • Jan 16
Owl Rock Capital: Expensive Lesson For The Bears
Summary ORCC has recovered remarkably from its recent December lows, outperforming the S&P 500. Investors need to ask whether they expect a deeper recession to unfold, which could batter business development companies like Owl Rock Capital. However, the market's positioning suggests that ORCC and its portfolio companies could avoid a deep recession, which augurs well for its relative valuation discount. Another deep pullback could offer another opportunity for buyers to strike. Investors of leading middle-market business development company ((BDC)) Owl Rock Capital Corporation (ORCC) had an opportunity to pick its recent December lows, as ORCC pulled back sharply. In an early November article, we also cautioned investors that ORCC seems due for a steep pullback after a massive recovery from its capitulation lows in October. Accordingly, ORCC fell nearly 16% from its November highs to its December bottom, allowing astute investors a fantastic opportunity to add exposure. ORCC surged last week as it outperformed the S&P 500 (SPX) (SPY) and closed nearly 8% above its week's lows. As such, we assessed that ORCC's valuation has normalized from its December bottom, even though it remains priced at a discount against its peers' median. Despite that, we don't expect ORCC to revisit its October lows, with the Fed is likely closer to the end of its historic rate hikes that have inflicted massive damage. Keen investors should recall that 98% of Owl Rock Capital's investment portfolio is predicated on floating rates, allowing the company to capitalize on the Fed's hikes. However, with the Fed likely moving to temper the cadence of its hikes from the next FOMC meeting, it should moderate the NII per share tailwind that has benefited ORCC moving ahead. As such, we believe investors' focus could turn to its portfolio companies' net asset value ((NAV)) performance as investors parse which sectors/industries could emerge with more resilience against a potential downturn/recession. Accordingly, ORCC has a well-diversified portfolio, with 23% of its Q3 portfolio fair value ((FV)) attributed to its top ten holdings. The company also has a diversified industry exposure, even though Internet software and services companies accounted for 12.7% of its portfolio FV. Hence, the company's positioning and selection could help shield it against a steeper-than-expected economic downturn by avoiding more exposure to cyclical companies. Bloomberg reported recently that "software firms are by far receiving a disproportionate amount of attention from private credit lenders." Hence, we believe the market for private credit is functioning well, more so in the current environment where banks have pulled back their financing. Accordingly, leading Wall Street banks have been laden "with more than $40 billion of debt they were unable to offload," reducing their appetite to take on more leveraged lending activities. Hence, the BDC market remains well-placed to serve its portfolio companies, which should benefit a major lender like Owl Rock, given its relatively low leverage and prudent underwriting. Golub Capital accentuated: Lenders can be choosy now as there is a lot of demand for our capital. We are focused on providing good loans to companies that are likely to do well even if market conditions, [and] macroeconomic conditions, get more challenging. - Bloomberg With Owl Rock due to report its FQ4 and FY22 earnings release on February 23, investors are urged to assess whether there is a deterioration in its key lending and underwriting metrics. Also, investors should assess management's commentary on the expected moderation in its NII per share uplift, given the Fed's likely pause or even earlier than expected pivot in its rate hikes. While investing in ORCC benefits from an attractive NTM dividend yield of 11.5%, newer BDC investors should acquaint themselves with the regulatory gap and valuation metrics of their portfolio companies. Bloomberg ran a primer on private credit recently, given the surge in interest, highlighting some of the critical pitfalls: Yet the inherently risky industry receives little oversight. Most private credit funds and business development corporations, which are companies that hold the assets in a loan portfolio, are only required to make basic quarterly disclosures to the US Securities and Exchange Commission. They aren't overseen by banking regulators. And most private credit funds haven't lived through a prolonged recession, which typically brings a spike in defaults. At times, the parties, which often use outside services to measure loan values, can arrive at a different number, says Eugene Grinberg, co-founder of financial research firm Solve. "Lenders can shop valuation companies like issuers shop ratings agencies," he says. - BloombergSeeking Alpha • Dec 09
11%-Yielding Owl Rock: Another Day, Another Dollar
Summary Owl Rock Capital's share price has dipped recently, giving value investors an opportunity to lock in a high yield. It has sound portfolio fundamentals and maintains plenty of liquidity. I also highlight the dividend, balance sheet, valuation, and other important points. I don't know about you, but I like to break out my annual dividend amount into a weekday amount, to simulate the idea of my capital working for me. It's rather simple, actually, as it's just the total annual dividend amount divided by 260 (52 weeks times 5 work days per week). As you can imagine, this is a good self-motivational tool and it's also a good budgeting tool to employ, as breaking out the annual dividend enables the investor to better match daily, weekly, or monthly cash outflows with a recurring income stream. This brings me to Owl Rock Capital Corp. (ORCC), which recently bumped up its dividend while announcing a supplemental one to boot. In this article, I highlight why 11% yielding ORCC is a high income stock that should rank high on an income investor's list. Why ORCC? Owl Rock Capital is one of the top 3 largest BDCs by asset size and is externally managed by Owl Rock Capital Advisors. It was founded in 2015 and due to its larger size, focuses on direct lending solutions for upper middle market companies in the U.S. At present, its investment portfolio carries a fair value of $12.8 billion across 180 portfolio companies, an increase of 12 companies since the end of June. ORCC's larger size means that it has the capacity to do larger deals, providing anchor debt financings in the $200 to $600 million range. It also has wide reaching relationships with over 640 private equity sponsors, giving it access to valuable insights and deal pipeline. Management is also selective about deals, with average l2.5x EBITDA to interest coverage ratio and loan to value of 45% across the portfolio, implying significant skin in the game by equity sponsors and company insiders. It also means that an underlying company with a loan in default would have to lose significant value before ORCC begins to incur losses. Moreover, the portfolio is comprised primarily of senior secured loans, representing 87% of the portfolio (72% first lien), and is well-diversified by industry. Much of the remainder is comprised of preferred equity (3%) and common equity (7%) for more upside potential on the net asset value. As shown below, software, finance/insurance, food, and manufacturing make up ORCC's top 5 sectors representing 45% of portfolio fair value. ORCC Portfolio Mix (Investor Presentation) Meanwhile, ORCC's portfolio demonstrates strong underlying fundamentals, with NAV per share rising by 2.5% on a sequential basis to $14.85 in the third quarter. Importantly, it generated NII per share of $0.37, well in excess of the third quarter dividend rate of $0.31, and prompting management to raise the dividend rate by $0.02 to $0.33 during fourth quarter. Furthermore 89% of the portfolio is performing at or above expectations, 10% below expectations, and less than 1% performing materially below expectations or are anticipated to default on debt obligations. It's worth noting that the non-accrual rate is low, comprised of just 2 portfolio companies (out of 180), comprising just 0.6% of the fair value of the debt portfolio. Looking forward, ORCC is well-positioned to continue to benefit from higher interest rates, especially considering that the market anticipates more rate hikes from the Federal Reserve, albeit at a slower pace. This is reflected by the fact that 98% of ORCC's debt investment portfolio is floating rate, while just 53% of its own debt is floating rate (47% are fixed rate).Seeking Alpha • Nov 15
Owl Rock's 9.9% Yield Is Still A Buy
Summary Owl Rock covered its dividend with net investment income in Q3’22. The BDC raised its regular quarterly dividend payout by $0.02 per share. For the fourth quarter, there will also be a $0.03 per share supplemental dividend. Owl Rock Capital Corporation (ORCC) announced an increase in dividend rate to $0.33 per share per quarter after easily covering its dividend pay-out in the third quarter with net investment income. The business development firm also announced that it will distribute excess portfolio income in the form of a supplementary dividend of $0.03 per share in the fourth quarter. I am confident in Owl Rock's net asset value because of the BDC's strong portfolio performance and low non-accruals. Because the stock is still trading at a discount to NAV, I continue to recommend ORCC to passive income investors. Portfolio And Credit Quality Owl Rock's credit quality remained strong in the third quarter. It added one new investment to its non-accruals, but the overall exposure to troubled loans is small in comparison to the total portfolio value of the company. Owl Rock had two non-accrual investments at the end of the September quarter, accounting for 0.6% of the business development company's investments based on fair value. The total investment value of Owl Rock's investment portfolio was $12.84 billion, a $188 million increase QoQ. In the third quarter, high quality first and second liens accounted for 86% of the BDC's investments. Other investments included unsecured debt, funds/investment vehicles, and equity, accounting for 14% of Owl Rock's total investments. Portfolio Highlights (Owl Rock Capital Corp) Owl Rock's new investment fundings totaled $304 million in the third quarter, roughly the same as in the first and second quarters. Demand for new investment funding is not as strong as it was in 2021, but Owl Rock's portfolio continues to grow, and the BDC appears to have no trouble finding new investment opportunities. New Investment Fundings (Owl Rock Capital Corp) Dividend Is Covered, Owl Rock Increased Distribution In the third quarter, Owl Rock earned $0.37 per share in net investment income, outperforming the business development company's running quarterly dividend pay-out by 6 cents. Owl Rock's pay-out ratio in Q3'22 was 84%, indicating that the regular dividend pay-out was easily covered by net investment income. In the previous twelve months, Owl Rock's dividend pay-out ratio was 92%. Financial Highlights (Owl Rock Capital Corp) Owl Rock announced an increase in its quarterly dividend due to its strong portfolio performance, high credit quality, and confidence in its net investment income. The new quarterly (regular) dividend will be $0.33 per share, with the first payment made in the fourth quarter. Owl Rock also announced the payment of a $0.03 per share supplemental dividend for the third quarter, bringing the total payout in the fourth quarter to $0.36 per share. Owl Rock now provides a covered 9.9% dividend yield to passive income investors as a result of the increase in the regular dividend rate. Owl Rock Is Still Available In The Market At A Discount Despite a strong recovery in its stock price in October, Owl Rock is still valued below its net asset value of $14.85 in the third quarter of 2012. With a current stock price of $13.36, the valuation represents a 10% discount to net asset value. Owl Rock, in my opinion, is undervalued and should trade at or near book value, if not at a premium, due to the high quality of the BDC's investment portfolio. Price To Book Value (YCharts) Why Owl Rock Might See A Lower/Higher Valuation Owl Rock's distinct selling point is the safety of its portfolio, which is focused on First Liens and has a low number of non-accruals. Increased non-accruals would almost certainly result in a lower net asset value and possibly a higher discount to net asset value.Seeking Alpha • Nov 08
Owl Rock Capital: Bears Got Thrashed
Summary The market forced weak holders into a panic, selling toward its October lows. However, the market has astutely reversed the selling, with ORCC back at its September highs. We urged investors to capitalize on ORCC's panic in our previous article. Accordingly, ORCC has outperformed the broad market significantly. We discuss why investors looking to participate in ORCC's opportunity should be patient now. We're moving to the sidelines, as we revise our rating from Buy to Hold. Thesis We updated investors in our previous update on leading middle-market business development company ((BDC)) Owl Rock Capital Corporation (ORCC) that the market sent fearful investors into a selling frenzy, forcing ORCC into lows last seen in April 2020. However, that also presented a tremendous opportunity for astute investors to capitalize on the bond market-driven fear then, given the discount to net asset value ((NAV)) at its October lows. Accordingly, ORCC's October lows were robustly supported, as further selling downside was rejected decisively. As such, ORCC has significantly outperformed the broad market since our previous article, posting a price gain of more than 22%. Owl Rock Capital's Q3 earnings release also calmed investors' nerves, as it outperformed the previously slashed analysts' estimates on both lines. In addition, ORCC's credit performance was better than expected and helped lift its NAV per share above its Q2 metric. Coupled with spreads that stayed relatively flat QoQ, it's possible that ORCC's Q2 could have marked a bottom in its NAV deterioration (unless a severe recession occurs). Given the momentum spike leading into its Q2 earnings, we postulate that the market had correctly anticipated a better-than-expected report card. However, we glean that ORCC's valuation is more well-balanced now, even though management raised its base dividend distribution (with the additional supplemental distribution). Revising from Buy to Hold, we urge investors to wait for a pullback before adding further. ORCC: Strong Net Investment Income Visibility Through H1'23 Given the Fed's rapid rate hikes, it has benefited Owl Rock Capital in Q3, as its net interest margin ((NIM)) increased to 10.2% from 8.9% in Q2. However, its spread was relatively constant, as it increased to 6.7% (from Q2's 6.6%), given the increase in its cost of debt. Notwithstanding, the company still outperformed the consensus estimates (bullish) on its net interest income ((NII)) per share metrics. Furthermore, the company continues to see clear visibility into Q4, as management guided to at least $0.39 in NII per share. ORCC NII per share change % consensus estimates (S&P Cap IQ) Accordingly, Wall Street raised its previously slashed estimates on its NII per share projections for Q4 to $0.4, slightly above the company's guidance. The revised projections suggest that the NII tailwinds could continue lifting Owl Rock Capital's operating performance through H1'23 before normalizing in H2. We believe the estimates are credible, as Fed Chair Jerome Powell also hinted at a possibility of a pause after two more hikes. Still, interest rates are expected to remain higher for an extended period, boosting the company's ability to sustain its NII. However, we postulate that Owl Rock Capital's NII per share growth rates are still expected to normalize as the Fed pauses its hiking regime. As such, we believe it could impinge on ORCC's upward momentum. ORCC NAV per share change % consensus estimates (S&P Cap IQ) Moreover, Owl Rock Capital's NAV unexpected dislocation in Q2 has likely normalized in Q3 (up 2.6% QoQ), given robust credit performances from its portfolio companies. Moving forward, we postulate the possibility of a further re-rating in its NAV could face significant challenges as ORCC remains fully invested. Moreover, its investment cadence has also slowed, and we believe it could remain subdued as we near a global recession. Notwithstanding, the potential for upside surprises remains in the cards, as management highlighted that it had assumed modest repayments in its guidance. With that in mind, we believe the consensus estimates are credible, as the risks of more valuation pressure in its portfolio companies could increase, depending on the extent of the recessionary impact.Seeking Alpha • Nov 02
Owl Rock Capital NII of $0.37 beats by $0.02, TII of $314.05M beats by $21.96M
Owl Rock Capital press release (NYSE:ORCC): Q3 Net Investment Income of $0.37 beats by $0.02 per share. GAAP EPS of $0.67 Total Investment Income of $314.05M (+16.7% Y/Y) beats by $21.96M.Seeking Alpha • Oct 09
Owl Rock Capital: Back Near April 2020 Lows, It's Time To Buy Aggressively
Summary ORCC has suffered tremendously over the past four weeks, as the market sent it tumbling nearly 30% from its August highs to its recent lows. Accordingly, investors all the way back to April 2020 are now in the red. Therefore, we postulate that the capitulation move caused many bullish investors to sell in a panic. We discuss why the steep selldown has improved the reward-to-risk profile significantly for investors at the current levels. Furthermore, the company's ability to ride the Fed's hawkish posture could help lift its net investment income through H1'23. Despite the risks of near-term downside volatility, we encourage long-term investors who have been waiting patiently to start adding exposure.Seeking Alpha • Sep 28
Owl Rock Capital goes ex-dividend tomorrow
Owl Rock Capital (NYSE:ORCC) had declared $0.31/share quarterly dividend, in line with previous. Payable Nov. 15; for shareholders of record Sept. 30; ex-div Sept. 29. See ORCC Dividend Scorecard, Yield Chart, & Dividend Growth.Seeking Alpha • Sep 07
Owl Rock Capital: Crowded Marriage - Management's Conflict Of Interest
Summary Dividend and revenue growth are almost entirely attributed to capital-raising and asset-deployment initiatives and don't consist of a measure of performance quality. ORCC has a dual (and conflicting) responsibility, one to ORCC and the other to OWL shareholders. Although asset valuations are a key metric for investors evaluating BDCs, the actual valuation process in many BDCs is opaque and subject to manipulation. Investment Thesis Owl Rock Capital Corporation (ORCC) posted solid Q2 results last month, highlighted by strong Net Investment Income "NII" figures. Management's bullish outlook for the remainder of the year assuaged fears over macroeconomic challenges' impact on its portfolio, mainly consisting of leveraged small and medium enterprises "SMEs." Management's message was consistent with its peers, reporting portfolio resilience in the face of macroeconomic disruptions during Q2. However, despite the strong quarter, the company suffers from systematic flaws, exacerbated by conflicts of interest inherent in its management structure, leverage, and excessive risk-taking, making it difficult to lean on ORCC to preserve capital. Revenue Trends ORCC's NII is a function of its fixed-income portfolio size and coupon rates (interest paid) on these investments. The company has been gradually and consistently increasing the size of its fixed-income portfolio over the last few years to meet demand from its borrowers. This is why it enjoys one of the highest revenue growth rates in the Business Development Company "BDC" sector. ORCC Revenue, LT Debt and Equity (Graph created by the author based on SA data) With the debt-to-equity ratio approaching the upper limit of management's target range of 0.9x-1.25x, revenue, and dividend growth will likely normalize in the coming quarters. Beyond asset expansion, ORCC revenue is inherently stable, derived from a fixed-income portfolio constituting 93% of its revenue. This figure increases when including ORCC's equity investment in Wingspire, the company's Private Credit lending subsidy, whose income is recorded as a dividend. The market was quick to brush off the company's net income loss, its first since Q1 2020, mainly attributed to widening credit spreads instead of a change in the credit quality of its portfolio. When it comes to Q2 earnings, no news is good news, and what stood out was the encouraging outlook of the company's performance despite challenging macroeconomic conditions. There were no defaults, and only one company is on non-accrual status, representing 0.5% of the total NAV. Systematic Risk Beyond ORCC's solid performance lies systematic risk stemming from its legal framework as a BDC, exacerbated by an external management structure underpinning a conflict of interest between management and shareholders, amplified by the recent SPAC deal that brought its advisor, Blue Owl (OWL) to public markets. ORCC management has dual responsibilities, one to ORCC and another for OWL shareholders. OWL shareholders receive a fixed fee over assets under management "AUM" and have an invested interest in seeing AUM expand regardless of performance. ORCC shareholders, on the other hand, have an interest in minimizing fees, maintaining share price, and receiving a stable dividend. This conflict of interest underpins the industry's continuous quest to expand portfolio size, diluting equity and increasing leverage. Since 2019, ORCC has been busy deploying cash raised from the 2019 IPO, and, more recently, leveraging up and enhancing base management fees satisfies its obligation towards Blue Owl shareholders, who also take a cut from base management fees without diluting ORCC shareholders. However, now that ORCC's leverage is reaching regulatory limits, management will need to raise equity to deliver its growth promise for OWL shareholders. This greed and conflict of interest are the main reasons over 80% of publicly-traded BDCs have lost NAV/share value since inception. Another systematic risk lies in BDC tax regulations requiring ORCC to distribute at least 90% of its investment income to shareholders, leaving a narrow window to recover capital losses. This drawback of the BDC structure is exacerbated by ORCC's high leverage, management fees, and conflict of interest that encourages risk-taking. These challenges are promoting slow change in the BDC industry. For example, Apollo Investment (dba MidCap Financial) (MFIC) decreased its management fees earlier last month. Gladstone Investment (GAIN) has long adopted a conservative capital-raising policy to combat the aforementioned systematic risks. Other BDCs adopted an internal management structure and fixed compensation, such as Hercules Capital (HTGC). Still, it remains uncertain whether the Lehman Brothers Alumni in charge of ORCC and OWL will follow this path. Balance Sheet In previous articles, I highlighted shortcomings in how many BDCs calculate asset fair values, undermining the usefulness of NAV. ORCC differentiates itself by hiring a third party to calculate the figure, utilizing "market data and spreads" to derive fair values.Seeking Alpha • Aug 05
Owl Rock Capital: Bag This 9.7% Yield At An 11% Discount To Book
ORCC's second quarter results were encouraging, with net income and NII per share coming in above expectations. ORCC is well-positioned for rising rates, as its NII will get a boost from higher interest rates on its floating rate loan portfolio. The stock is attractively valued at present while offering investors a high yield. Some BDCs, such as Main Street Capital (MAIN), have seen a run-up in their share prices in recent weeks, but there are some that have been left behind, offering investors a high yield. This brings me to Owl Rock Capital Corporation (ORCC), which remains rather inexpensive while throwing off a near 10% dividend yield. In this article, I highlight what makes ORCC a good opportunity at present for income investors, so let's get started. Why ORCC? Owl Rock Capital is one of the top 3 largest BDCs by asset size and is externally managed by Owl Rock Capital Advisors. It was founded in 2015 and due to its larger size, focuses on direct lending solutions for upper middle market companies in the U.S. At present, its investment portfolio carries a fair value of $12.6 billion across 168 portfolio companies, an increase of 11 companies since the first quarter this year. The portfolio is comprised primarily of senior secured loans, representing 88% of the portfolio (73% first lien, 15% second lien), and is well-diversified by industry. As shown below, software, finance/insurance, food, and manufacturing make up ORCC's top 5 sectors representing 43% of portfolio fair value. ORCC Portfolio Mix (Owl Rock Capital) ORCC recently released second-quarter earnings that beat Wall Street expectations. This includes achieving a net investment income of $0.32, exceeding the average analyst estimate of $0.31 and rose from $0.30 in the prior year period. This is on the back of $273 million in total investment income, which rose 9.8% from $249 million in Q2 of last year. Also encouraging, ORCC maintains sound portfolio metrics, with just 1 investment on nonaccrual status, representing just 0.1% of the fair value of the debt portfolio. Moreover, 90% of ORCC's portfolio investments carry the highest ratings of either 1 or 2 for safety. It's worth noting, however, that ORCC's net asset value per share declined by $0.40 on a sequential basis to $14.48. I'm not too concerned, however, as this was primarily driven by unrealized portfolio markdowns due to wider credit spreads across the broader market. This makes sense, since ORCC's loan investments are essentially bonds whose value get marked down during times of economic uncertainty, as the market requires a higher premium for taking risk. Looking forward, ORCC is well-positioned for rising rates, as 98.8% of its debt investments are floating rate. This bodes well for NII per share in Q3 as management outlined the benefits from higher interest rates during the conference call: As I discussed last quarter, we will see a meaningful benefit from rising rates starting in the third quarter. As you will recall, at the beginning of the second quarter, many of our borrowers reset their interest rate election to three months LIBOR, which was approximately 1% at the time and slightly above the average floor in our portfolio. So there was a limited benefit to our interest income in Q2. The second quarter ended with three months LIBOR at 2.3% which meaningfully increase the base rate for those borrowers. Holding all else equal had our base rates as of June 30, has been in effect for the entirety of the second quarter, we estimate NII would have increased $0.02 per share, to a total of $0.34 per share in Q2. Additionally, borrowers will continue to reset their interest rate elections throughout the third quarter which will continue to benefit the yield on our portfolio and be accretive to NII. Meanwhile, ORCC maintains sound leverage with a debt to equity ratio of 1.2x, sitting well below the 2.0x regulatory limit. This gives it plenty of breathing room and funding capacity for its deal pipeline, as ORCC has $1.7 billion in total liquidity, comprised of cash on hand and undrawn debt capacity.Seeking Alpha • Jun 26
Owl Rock: Here's Why I Bought The Dip
Owl Rock is a stable, well-executing BDC. Low non-accruals, a 1st-lien focus, and strong credit performance make Owl Rock recession-proof. Stock has started to trade at a 16% discount to book value.Seeking Alpha • Jun 13
Owl Rock Capital: Big Yield, Big Discount, Big BDC
Owl Rock Capital is a large BDC that has seen share price weakness in recent months. It's set to benefit from a rising rate environment due to its high exposure to floating rate debt investments. Meanwhile, it maintains a healthy balance sheet and pays a high dividend yield that's covered by net investment income.Seeking Alpha • May 28
Owl Rock Capital - Build A Position Before Q3 2022 For Maximum Upside
Investing in the right BDC is a great way to strengthen the dividend yield of your portfolio. 99% of all debt instruments with ORCC are floating-rate, and that means they make more money whenever the 3-month LIBOR rate increases. At the current price of $12.72/share, the stock yields a whopping 9.63%. ORCC has more than half of its portfolio invested in "service-oriented sectors" that are not as heavily impacted by supply chain disruption. ORCC hasn't seen investment income benefit from rising rates yet due to most borrowers having a floor rate of equivalent to 100 basis points.Seeking Alpha • May 13
Owl Rock Capital: 9% Yield, 11% Discount, Rising Rate Hedge, Analyst Upgrade
ORCC yields 9.35%, with trailing coverage of 1.04X. It's selling at a 10.89% discount to NAV/share. ORCC benefits from rising interest rates, and recently received an analyst upgrade to Outperform.Seeking Alpha • Apr 13
Owl Rock Capital: 8.3% Yield, Wake Up And Smell The Cash Flow
Owl Rock Capital has seen a consistently rising NAV/share in recent quarters. It continues its strategy of focusing primarily on first-lien secured debt. It's well-positioned for a rising rate environment, pays a well-covered dividend, and is attractively valued.Seeking Alpha • Mar 13
Owl Rock Capital: We're Buying This 8.6% Yielder Hand Over Fist
Owl Rock Capital’s management team has been known for its focus on high quality assets/loans which have historically resulted in extraordinarily low non-accrual rates. Even after ORCC’s recent pullback, its shares have outperformed the market by a significant percentage during 2022 thus far. ORCC’s 8.55% yield, combined with ongoing multiple expansion prospects, lead us to believe that this stock offers double digit total return potential moving forward.Seeking Alpha • Feb 27
Owl Rock Capital Will Benefit From Rising Rates (Management Interview)
We had a chat with ORCC's CFO today. ORCC will benefit from rising rates. ORCC yields 8.22% and goes ex-dividend on 3/30/22. It's trading at a 0% premium to NAV/Share. Management targeted positive 1X dividend coverage for Q3-4 2022 and delivered 1.13X in Q4 '21.Seeking Alpha • Jan 25
Owl Rock Capital: Big Yield From A Well-Managed BDC
Owl Rock Capital, a business development company or BDC, goes into the spotlight for the first time. The company pays almost a nine percent dividend yield, and financial companies should benefit from rising interest rates in theory. A full investment analysis follows in the paragraphs below.Seeking Alpha • Nov 27
Owl Rock Capital: We're Buying This 8.8% Yielder Hand Over Fist
We have been steadily increasing our BDC analysis, research, and exposure in order to supplement our REIT and Midstream exposure. Our readers enjoy our diversified income-oriented research because it enables them to build powerful portfolios that generate repeatable income. Today I will highlight one of our favorite BDC picks: Owl Rock Capital.Seeking Alpha • Nov 16
Owl Rock Capital: 8.6% Yield, Why Wait When You Can Get Paid Now
Owl Rock Capital has a very large and well-diversified portfolio that's growing. Its primarily floating-rate loans give inflation protection and enables it to benefit from rising rates. The dividend is covered, and the high yield makes ORCC a good option for retirees and income investors alike.Seeking Alpha • Nov 07
Owl Rock Capital: 8.5% Yield, 2% Discount, Record Quarter
ORCC reported earnings this week - it had a record level of originations. ORCC yields 8.49%, and covered its Q3 dividend by 1.06X. It's trading at a -2.34% discount to NAV/share.Seeking Alpha • Oct 07
Owl Rock: I Reach For Higher Yield When It Reaches For Me
Owl Rock Capital is the second-largest BDC and is seeing an improvement to its NAV/share. Yet, its stock price has been rangebound for much of this year, giving income investors opportunities to layer in. I also highlight ORCC's dividend and show what makes it a solid Buy at the moment.Seeking Alpha • Aug 20
Rich 9% Yield: Buy The Drop On Owl Rock Capital
Owl Rock Capital is a large and well-diversified BDC with sequential growth in NAV/share, and YoY growth in portfolio yield. It maintains a strong balance sheet and is seeing favorable demand for its loans. The recent drop in price presents a buying opportunity.Seeking Alpha • Aug 08
Owl Rock Capital: 8% Yield, 3% Discount, Q2 '21 Coverage Much Better
ORCC yields 8.56% - Q2 '21 NII coverage improved to 97%. It's selling at a 2.75% discount to NAV. Valuations, performance, and profitability vs. the BDC industry are covered in this article.Seeking Alpha • Jul 02
Owl Rock Capital: 9% Yield, 4% Discount, Q2 2021 Should Be Big
ORCC yields 8.69%, and is trading at a 3.7% discount to NAV/share. Mgt. sees higher repayments coming in Q2 '21, which will increase NII. Current valuations, sequential earnings, and price targets are detailed in this article.Shareholder Returns
| OBDC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -2.6% | -1.8% | -2.3% |
| 1Y | -24.8% | 7.6% | 21.2% |
Return vs Industry: OBDC underperformed the US Capital Markets industry which returned 11.4% over the past year.
Return vs Market: OBDC underperformed the US Market which returned 23.3% over the past year.
Price Volatility
| OBDC volatility | |
|---|---|
| OBDC Average Weekly Movement | 3.5% |
| Capital Markets Industry Average Movement | 3.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: OBDC has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: OBDC's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2015 | n/a | Craig Packer | www.blueowlcapitalcorporation.com |
Blue Owl Capital Corporation is a business development company. It specializes in direct and fund of fund investments. The fund makes investments in senior secured, direct lending or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments, first lien, unitranche, and second lien term loans and common equity investments.
Blue Owl Capital Corporation Fundamentals Summary
| OBDC fundamental statistics | |
|---|---|
| Market cap | US$5.36b |
| Earnings (TTM) | US$360.39m |
| Revenue (TTM) | US$1.78b |
14.9x
P/E Ratio3.0x
P/S RatioIs OBDC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OBDC income statement (TTM) | |
|---|---|
| Revenue | US$1.78b |
| Cost of Revenue | US$0 |
| Gross Profit | US$1.78b |
| Other Expenses | US$1.42b |
| Earnings | US$360.39m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.73 |
| Gross Margin | 100.00% |
| Net Profit Margin | 20.21% |
| Debt/Equity Ratio | 118.2% |
How did OBDC perform over the long term?
See historical performance and comparisonDividends
11.7%
Current Dividend Yield208%
Payout RatioDoes OBDC pay a reliable dividends?
See OBDC dividend history and benchmarks| Blue Owl Capital dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2026 |
| Dividend Pay Date | Jul 15 2026 |
| Days until Ex dividend | 5 days |
| Days until Dividend pay date | 20 days |
Does OBDC pay a reliable dividends?
See OBDC dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/23 10:34 |
| End of Day Share Price | 2026/06/23 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
|
|
| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
| |
| Key Developments | 10 years |
|
* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Blue Owl Capital Corporation is covered by 15 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Derek Hewett | BofA Global Research |
| Mitchel Penn | Brean Capital Historical (Janney Montgomery) |
| Sean-Paul Adams | B. Riley Securities, Inc. |