OTF Stock Analysis: Blue Owl Technology Finance | NYSE
Asset Management | NYSE, USA | Market Cap: 4.325m USD | 12M Return: -24.2% | US0959241060 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 20.6M
Qual. Beats: 0
Rev. Trend: 80.0%
Warnings
Tailwinds
Seasonality 1.3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Blue Owl Technology Finance Corp. (NYSE: OTF) is a business development company (BDC) that provides debt and equity capital to upper middle-market companies, with a sector focus on technology and software businesses based primarily in the United States. Its investment offerings span senior secured and unsecured loans, subordinated or mezzanine debt, and equity-related instruments such as common equity, warrants, and preferred stock. The firm was founded in 2018 and is headquartered in New York.
As a BDC, the company operates under the regulatory framework of the Investment Company Act of 1940, which typically requires such entities to distribute the majority of their taxable income to shareholders, making them a common income-oriented investment vehicle. Its specialization in lending to upper middle-market technology issuers places it within the broader private credit segment, which has grown as traditional banks have reduced exposure to middle-market direct lending.
- Software sector loan demand drives portfolio growth
- Rising interest rates boost investment income margins
- BDC regulatory leverage limits cap on portfolio expansion
| Net Income: 375.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -3.08 > 1.0 |
| NWC/Revenue: 8.57% < 20% (prev 12.62%; Δ -4.04% < -1%) |
| CFO/TA 0.03 > 3% & CFO 376.4m > Net Income 375.1m |
| Net Debt (7.15b) to EBITDA (610.1m): 11.73 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (460.9m) vs 12m ago 95.83% < -2% |
| Gross Margin: 77.47% > 18% (prev 71.46%; Δ 6.01% > 0.5%) |
| Asset Turnover: 9.82% > 50% (prev 5.84%; Δ 3.98% > 0%) |
| Interest Coverage Ratio: 1.64 > 6 (EBIT TTM 665.5m / Interest Expense TTM 407.0m) |
| A: 0.01 (Total Current Assets 118.2m - Total Current Liabilities 0.0) / Total Assets 15.1b |
| B: 0.00 (Retained Earnings 57.8m / Total Assets 15.1b) |
| C: 0.05 (EBIT TTM 665.5m / Avg Total Assets 14.0b) |
| D: 1.00 (Book Value of Equity 7.54b / Total Liabilities 7.52b) |
| Altman-Z'' = 1.44 = BB |
As of October 07, 2026, the stock is trading at USD 9.36 with a total of 1,976,337 shares traded. Over the past week, the price has changed by -5.65%, over one month by -11.49%, over three months by -6.11% and over the past year by -24.16%.
Current recommended Stop Loss: 9.00 (which is 3.8% or 1.4 ATR below the current price).
Blue Owl Technology Finance has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy OTF.
- StrongBuy: 4
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.6 | 45.4% |
P/E Trailing = 11.8
P/E Forward = 7.4239
P/S = 3.309
P/B = 0.6314
Revenue TTM = 1.38b USD
EBIT TTM = 665.5m USD
EBITDA TTM = 610.1m USD
Long Term Debt = 6.29b USD (from longTermDebt, last fiscal year)
Short Term Debt = unknown (none)
Debt = 7.16b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.15b USD (calculated: Debt 7.16b - CCE 3.23m)
Enterprise Value = 11.5b USD (4.33b + Debt 7.16b - CCE 3.23m)
Interest Coverage Ratio = 1.64 (Ebit TTM 665.5m / Interest Expense TTM 407.0m)
EV/FCF = -37.94x (Enterprise Value 11.5b / FCF TTM -302.6m)
FCF Yield = -2.64% (FCF TTM -302.6m / Enterprise Value 11.5b)
FCF Margin = -21.94% (FCF TTM -302.6m / Revenue TTM 1.38b)
Net Margin = 27.20% (Net Income TTM 375.1m / Revenue TTM 1.38b)
Gross Margin = 77.47% ((Revenue TTM 1.38b - Cost of Revenue TTM 310.7m) / Revenue TTM)
Gross Margin QoQ = 74.11% (prev 89.87%)
Tobins Q-Ratio = 0.76 (Enterprise Value 11.5b / Total Assets 15.1b)
Interest Expense / Debt = 5.69% (Interest Expense 407.0m / Debt 7.16b)
Taxrate = 1.45% (5.47m / 377.7m)
NOPAT = 655.9m (EBIT 665.5m * (1 - 1.45%))
Current Ratio = unknown (Total Current Assets 118.2m / Total Current Liabilities 0.0)
Debt / Equity = 0.95 (Debt 7.16b / totalStockholderEquity, last quarter 7.54b)
Debt / EBITDA = 11.73 (Net Debt 7.15b / EBITDA 610.1m)
Debt / FCF = -23.64 (negative FCF - burning cash) (Net Debt 7.15b / FCF TTM -302.6m)
Total Stockholder Equity = 7.81b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.67% (Net Income 375.1m / Total Assets 15.1b)
RoE = 4.80% (Net Income TTM 375.1m / Total Stockholder Equity 7.81b)
RoCE = 4.72% (EBIT 665.5m / Capital Employed (Equity 7.81b + L.T.Debt 6.29b))
RoIC = 4.42% (EBIT 665.5m / (Assets 15.1b - Curr.Liab 0.0 - Cash 3.23m))
WACC = 6.47% (E(4.33b)/V(11.5b) * Re(7.90%) + D(7.16b)/V(11.5b) * Rd(5.69%) * (1-Tc(0.01)))
Discount Rate = 7.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.34 | Cagr: 42.40%
[DCF] Fair Price = unknown (Cash Flow -302.6m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.05 | # QB: 0
Revenue Correlation: 80.01 | Revenue CAGR: 35.15% | SUE: N/A | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.32 | Chg30d=+5.06% | Revisions=+57% | Analysts=7
EPS current Year (2026-12-31): EPS=1.27 | Chg30d=+2.81% | Revisions=+38% | GrowthEPS=+0.0% | GrowthRev=+21.1%
EPS next Year (2027-12-31): EPS=1.37 | Chg30d=+4.59% | Revisions=+67% | GrowthEPS=+7.8% | GrowthRev=+14.1%
[Analyst] Revisions Ratio: +72% (up=14, down=1)