Blue Owl Capital Inc (OWL, Financial) has experienced a notable uptick in its stock performance over the recent months. With a current market capitalization of $9.11 billion, the company's stock price stands at $19.57. Despite a slight dip of 0.64% over the past week, the stock has surged by an impressive 27.79% over the past three months. This growth trajectory has caught the attention of investors, especially when considering the stock's GF Value of $22.84, which suggests that the stock is modestly undervalued. Notably, the GF Value three months ago was not applicable, indicating a recent development in the company's valuation metrics.
Introducing Blue Owl Capital Inc
Blue Owl Capital Inc operates within the asset management industry, specializing as an alternative asset management firm. The company's business model is centered around deploying private capital across various platforms including Credit, GP Strategic Capital, and Real Estate. Blue Owl Capital Inc serves a diverse investor base, ranging from institutional clients to private wealth individuals. The company's operations are primarily conducted through Blue Owl Capital Holdings LP and Blue Owl Capital Carry LP, with a significant portion of its revenue generated within the United States. 
Assessing Profitability
When it comes to profitability, Blue Owl Capital Inc has a Profitability Rank of 2 out of 10, which indicates challenges in this area relative to other companies. However, the company's operating margin stands at a healthy 18.35%, outperforming 54.66% of 633 companies in the industry. The return on equity (ROE) is 3.47%, surpassing 46.62% of 1701 companies, while the return on assets (ROA) at 0.62% is better than 36.32% of 1718 companies. The return on invested capital (ROIC) is 3.29%, which is higher than 58.36% of 682 companies. Despite these figures, Blue Owl Capital Inc has only achieved profitability in 2 of the past 10 years, which is a concern for long-term investors. 
Growth Prospects
Blue Owl Capital Inc's growth metrics are particularly strong. The company boasts a 3-year revenue growth rate per share of 66.80%, which is higher than 89.31% of 1076 companies in the same industry. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 20.78%, outperforming 90.24% of 82 companies. Furthermore, the EPS without NRI growth rate for the same future period is projected at 23.46%, which is better than 87.1% of 62 companies. These growth rates are indicative of Blue Owl Capital Inc's potential for continued expansion and profitability. 
Notable Shareholders
Blue Owl Capital Inc has attracted the attention of several prominent investors. Jim Simons (Trades, Portfolio) holds 1,049,800 shares, representing 0.23% of the company's shares. Paul Tudor Jones (Trades, Portfolio) owns 390,751 shares, accounting for 0.09%, and Chuck Royce (Trades, Portfolio) has a stake of 111,180 shares, making up 0.02% of the shares. These holdings reflect the confidence that these seasoned investors have in the company's future prospects.
Competitive Landscape
In comparison to its competitors, Blue Owl Capital Inc stands strong with a market cap of $9.11 billion. Invesco Ltd (IVZ, Financial) has a market cap of $7.5 billion, FS KKR Capital Corp (FSK, Financial) is valued at $5.34 billion, and Blackstone Secured Lending Fund (BXSL, Financial) has a market cap of $5.87 billion. Blue Owl Capital Inc's market position is solid when compared to these peers, and its recent stock performance further highlights its competitive edge in the asset management industry.
Conclusion
In summary, Blue Owl Capital Inc's recent stock price rally can be attributed to its strong growth prospects and modest undervaluation as indicated by its GF Value. While the company's profitability rank suggests room for improvement, its operating margin and other profitability metrics are competitive within the industry. The company's growth rates in revenue and EPS are particularly promising, signaling potential for future success. Notable investors have taken positions in the company, underscoring their belief in its value proposition. Compared to its competitors, Blue Owl Capital Inc is well-positioned in the market, making it a stock to watch for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
