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Here's Why Investors Should Hold Blue Owl Capital Stock for Now
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Key Takeaways
OBDC focuses on upper middle-market firms, with most assets in senior secured loans for stability.
Blue Owl Capital grew investment income 15.9% in 2025, backed by higher interest income and expansion.
OBDC faces risks from $9.3B debt load and rising expenses, up 23.1% year over year in 2025.
Blue Owl Capital Corporation (OBDC - Free Report) is a business development company focused on upper middle-market businesses, investing both directly and through funds. Most of its investments are in senior secured loans, which are generally considered lower risk and help support portfolio stability. OBDC’s shares have lost 12.9% year to date compared with the industry’s 19.4% decline.
Image Source: Zacks Investment Research
From a valuation perspective, Blue Owl looks reasonably attractive. With a market capitalization of approximately $5.4 billion, the stock trades at a forward P/E ratio of 8.03X, which is below the industry average of 8.88X, indicating potential undervaluation relative to its peers. The company has a Value Score of B.
Image Source: Zacks Investment Research
Blue Owl Capital currently carries a Zacks Rank #3 (Hold).
Where Do Estimates for OBDC Stand?
The Zacks Consensus Estimate for Blue Owl Capital’s 2026 earnings is pegged at $1.36 per share, which has remained unchanged over the past 30 days. The consensus estimate for 2026 revenues is pegged at $1.7 billion. OBDC beat on earnings in two of the trailing four quarters and missed in the other two.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Blue Owl Capital has rapidly scaled its platform through high-profile strategic transactions, most notably the landmark combination with Dyal Capital Partners and Owl Rock Capital. The firm has recently focused on optimizing its balance sheet through sophisticated secondary market transactions. In early 2026, it successfully executed a $1.4 billion secondary sale of assets from its Business Development Company (BDC) portfolios. This move was designed to provide immediate liquidity and support enhanced distribution profiles for its investors.
The company has demonstrated steady growth in investment income, which rose 15.9% year over year in 2025, driven by higher interest income and portfolio expansion. As of Dec. 31, 2025, OBDC had 234 portfolio companies. While potential interest rate cuts may put some pressure on income, market volatility could create additional direct lending opportunities, supporting future growth.
OBDC offers an attractive dividend yield of around 13.7%, significantly higher than the industry average of 1.9%. It continues to return value to shareholders through regular and supplemental dividends, along with share buybacks. The company declared first-quarter 2026 dividend of 37 cents per share. The company also authorized a share repurchase program of up to $300 million, with an 18-month duration.
Blue Owl Capital focuses on stable, cash-generating upper middle-market firms across various industries. A significant portion of its investments is in senior secured loans, which helps reduce risk and maintain portfolio strength even during uncertain market conditions.
Risks to Consider
OBDC carries a relatively high debt load, with $9.3 billion in long-term debt compared to a cash balance of $558.7 million at the end of 2025. Its debt-to-capital ratio of 55.7% exceeds the industry average of 50.9%, indicating elevated financial risk.
The company’s expenses increased 23.1% year over year in 2025. Higher interest costs and management fees are expected to keep expenses elevated, potentially continuing to pressure profit margins.
Conclusion
Despite concerns over rising expenses and leverage, Blue Owl Capital remains a standout for income seekers. Its high dividend yield and consistent buyback program, paired with an attractive valuation, support a compelling return profile.
The Zacks Consensus Estimate for Gold.com’s 2026 earnings is pegged at $4.34 per share, calling for 100% year-over-year growth. GOLD’s bottom line has remained stable over the past 30 days. The consensus estimate for 2026 revenues is pinned at $19.9 billion, implying 81.5% year-over-year growth.
The Zacks Consensus Estimate for Piper Sandler’s 2026 earnings is pegged at $4.63 per share, which has remained stable over the past 30 days. PIPR beat on earnings in each of the trailing four quarters, with the average surprise being 48%. The consensus estimate for 2026 revenues is pinned at $2 billion, implying 5.1% year-over-year growth.
The Zacks Consensus Estimate for StoneX Group’s 2026 earnings is pegged at $5.27 per share, indicating 34.1% year-over-year growth. SNEX beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 3.83%. The consensus estimate for 2026 revenues is pinned at $5.3 billion, implying 28.1% year-over-year growth.
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Here's Why Investors Should Hold Blue Owl Capital Stock for Now
Key Takeaways
Blue Owl Capital Corporation (OBDC - Free Report) is a business development company focused on upper middle-market businesses, investing both directly and through funds. Most of its investments are in senior secured loans, which are generally considered lower risk and help support portfolio stability. OBDC’s shares have lost 12.9% year to date compared with the industry’s 19.4% decline.
Image Source: Zacks Investment Research
From a valuation perspective, Blue Owl looks reasonably attractive. With a market capitalization of approximately $5.4 billion, the stock trades at a forward P/E ratio of 8.03X, which is below the industry average of 8.88X, indicating potential undervaluation relative to its peers. The company has a Value Score of B.
Image Source: Zacks Investment Research
Blue Owl Capital currently carries a Zacks Rank #3 (Hold).
Where Do Estimates for OBDC Stand?
The Zacks Consensus Estimate for Blue Owl Capital’s 2026 earnings is pegged at $1.36 per share, which has remained unchanged over the past 30 days. The consensus estimate for 2026 revenues is pegged at $1.7 billion. OBDC beat on earnings in two of the trailing four quarters and missed in the other two.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Blue Owl Capital Corporation price-consensus-eps-surprise-chart | Blue Owl Capital Corporation Quote
OBDC’s Business Tailwinds
Blue Owl Capital has rapidly scaled its platform through high-profile strategic transactions, most notably the landmark combination with Dyal Capital Partners and Owl Rock Capital. The firm has recently focused on optimizing its balance sheet through sophisticated secondary market transactions. In early 2026, it successfully executed a $1.4 billion secondary sale of assets from its Business Development Company (BDC) portfolios. This move was designed to provide immediate liquidity and support enhanced distribution profiles for its investors.
The company has demonstrated steady growth in investment income, which rose 15.9% year over year in 2025, driven by higher interest income and portfolio expansion. As of Dec. 31, 2025, OBDC had 234 portfolio companies. While potential interest rate cuts may put some pressure on income, market volatility could create additional direct lending opportunities, supporting future growth.
OBDC offers an attractive dividend yield of around 13.7%, significantly higher than the industry average of 1.9%. It continues to return value to shareholders through regular and supplemental dividends, along with share buybacks. The company declared first-quarter 2026 dividend of 37 cents per share. The company also authorized a share repurchase program of up to $300 million, with an 18-month duration.
Blue Owl Capital focuses on stable, cash-generating upper middle-market firms across various industries. A significant portion of its investments is in senior secured loans, which helps reduce risk and maintain portfolio strength even during uncertain market conditions.
Risks to Consider
OBDC carries a relatively high debt load, with $9.3 billion in long-term debt compared to a cash balance of $558.7 million at the end of 2025. Its debt-to-capital ratio of 55.7% exceeds the industry average of 50.9%, indicating elevated financial risk.
The company’s expenses increased 23.1% year over year in 2025. Higher interest costs and management fees are expected to keep expenses elevated, potentially continuing to pressure profit margins.
Conclusion
Despite concerns over rising expenses and leverage, Blue Owl Capital remains a standout for income seekers. Its high dividend yield and consistent buyback program, paired with an attractive valuation, support a compelling return profile.
Key Picks
Some better-ranked stocks in the broader Finance space are Gold.com, Inc. (GOLD - Free Report) and Piper Sandler Companies (PIPR - Free Report) ,) both sporting a Zacks Rank #1 (Strong Buy) at present, and StoneX Group Inc. (SNEX - Free Report) , carrying a Zacks rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gold.com’s 2026 earnings is pegged at $4.34 per share, calling for 100% year-over-year growth. GOLD’s bottom line has remained stable over the past 30 days. The consensus estimate for 2026 revenues is pinned at $19.9 billion, implying 81.5% year-over-year growth.
The Zacks Consensus Estimate for Piper Sandler’s 2026 earnings is pegged at $4.63 per share, which has remained stable over the past 30 days. PIPR beat on earnings in each of the trailing four quarters, with the average surprise being 48%. The consensus estimate for 2026 revenues is pinned at $2 billion, implying 5.1% year-over-year growth.
The Zacks Consensus Estimate for StoneX Group’s 2026 earnings is pegged at $5.27 per share, indicating 34.1% year-over-year growth. SNEX beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 3.83%. The consensus estimate for 2026 revenues is pinned at $5.3 billion, implying 28.1% year-over-year growth.