Blue Owl Capital: The 21% NAV Discount Is Hard To Ignore

DCF Value Investor 113 Followers Follow Summary Blue Owl Capital Corporation trades at a 21% discount to NAV, offering a compelling risk-reward profile with a Buy rating. OBDC's adjusted NII of $0.34 per share covers its $0.31 base dividend, supporting an 11% yield, with supplemental dividends potentially raising yield to 11.7%. The portfolio is 78.8% senior secured loans; non-accruals rose to 2.8% at cost but only 0.8% at fair value, suggesting write-downs are largely reflected. Share buybacks below NAV are accretive, leverage is declining, and management's conservative capital allocation enhances margin of safety. Nico De Pasquale Photography/DigitalVision via Getty Images Introduction Blue Owl Capital Corporation (NYSE: OBDC ) today provides a rare opportunity with high returns as well as the substantial discount with regard to net asset value. The OBDC shares are traded at $11.30 just This article was written by DCF Value Investor 113 Followers Follow I'm DCF Value Investor a passionate individual analyst with unique ideas that cover all types of stocks and commodities. I focus on companies fundamentals and valuation, to deliver a proper investment analysis. My ideas explore a different point of view for undervalued opportunities. Although I cover all types of stocks, the sectors I prefer are materials, technology and real estate. My research process begins with screening for companies that appear undervalued based on their balance sheet, income statement and cash flow statement. From there I conduct a fundamental analysis, including valuation ratios and industry trends. Through my analysis, I aim to help my readers to make better investment decisions. As an independent writer, I write with a particular perspective, bringing fresh ideas to the platform. My ideas keen all types of readers with her intense research in the stock I'm covering, the investment thesis on my articles is solid as it is back on fundamentals and the whole concept on my pieces are based on value investing. My motivation for writing on Seeking Alpha is to offer a different perspective from Wall Street, writing about hidden opportunities in the market. Investigating over hyped stocks in the market, digging into financials and valuation with my own analysis are my passion. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.