Blue Owl Capital Corp (OBDC)

Price$11.47Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkThe deep asset discount and covered double-digit yield outweigh current credit concerns.

The shares trade about 20% below June net asset value of $14.26 and around 8.4 times annualized second-quarter adjusted net investment income of $0.34 per share. The $0.31 base dividend alone yields about 10.9%, while the recent $0.02 supplemental dividend lifts the annualized payout rate further. The discount partly reflects falling net asset value and a base-dividend reduction from $0.37. Still, current income covers the new payout, providing an unusually large valuation cushion if credit losses remain contained.

Big pictureIncome remains attractive, but lower interest rates and slower reinvestment can reduce future earnings.

About 96% of debt investments carry floating rates, so falling short-term rates can directly reduce borrower interest payments and OBDC's investment income. The portfolio's weighted average yield slipped to 9.9%, while second-quarter repayments and sales of $747 million substantially exceeded $319 million of new commitments. That temporarily reduces earning assets unless attractive loans are found quickly. The offset is disciplined underwriting: 78.8% of debt investments are senior secured, and management says borrower operating trends remain stable.

Business strengthSenior secured lending and lower leverage provide protection, while problem loans still require close watching.

First-lien loans represent 73.2% of the portfolio, net debt-to-equity fell to 1.11 times, and investments on non-accrual were only 0.8% of fair value. However, non-accruals measured at original cost rose to 2.8% from 2.0% during the quarter, showing a small group of troubled borrowers has been marked down substantially. OBDC repurchased about $35 million of stock below asset value in each of the first two quarters, helping shrink shares after the large 2025 merger-related increase.

What could change the storyStable credit could close the discount, while continued asset losses could threaten the dividend.

The bull case is that OBDC reinvests repayments at attractive spreads, keeps adjusted net investment income above the $0.31 base dividend, and stabilizes net asset value. A narrowing of the roughly 20% discount to assets would then add meaningful upside beyond the income yield. The bear case is continued credit markdowns: net asset value has already fallen from $15.03 a year earlier to $14.26, and non-accrual cost has risen. Several quarters of income below the base dividend or faster asset-value erosion would weaken the undervaluation thesis.

AI: News

Second-quarter earnings reboundImproved income, dividend coverage, and lower leverage outweighed another decline in asset value.

On August 5, OBDC reported adjusted net investment income of $0.34 per share, up from $0.31 in the first quarter and above the roughly $0.32 consensus. It declared a $0.02 supplemental dividend alongside the $0.31 base payout, while leverage fell to a two-year low. Net asset value declined to $14.26 because of several markdowns. Shares gained about 2.9% around the earnings call, consistent with investors favoring improved income and coverage despite lingering credit concerns.

First-quarter earnings missLower investment income and another asset-value decline intensified concerns about earnings and credit durability.

On May 6, OBDC reported adjusted net investment income of $0.31 per share, down from $0.36 in the prior quarter and about 11% below the consensus cited by Zacks. Net asset value fell to $14.41 from $14.81, mainly because wider credit spreads reduced portfolio marks. The shares fell about 3.2% on the earnings-call date. That reaction is consistent with concern about weaker income and book value, although broader market factors may also have contributed.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$1.85B	$1.60B	$1.58B	$1.20B	$1.02B	$803.3M	—	—	—	—
Operating expenses	$67.2M	$58.4M	$27.9M	$59.5M	—	—	—	—	—	—
Net income	$627.4M	$595.0M	$793.3M	$466.4M	$624.9M	$387.7M	—	—	—	—
Net profit margin	33.89%	37.26%	50.14%	38.80%	61.18%	48.27%	—	—	—	—
Basic EPSper basic share	$1.24	$1.53	$2.03	$1.18	$1.59	$1.00	—	—	—	—
Diluted EPSper diluted share	$1.24	$1.53	$2.03	$1.18	$1.59	$1.00	—	—	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

3.33%of listed shares

CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM16.45M shares · Jun 30, 2026

View holders

Top 20 reported holders of OBDC
Holder	% owned
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM	3.33%16.45M shares
State of New Jersey Common Pension Fund A	3.10%15.26M shares
OREGON PUBLIC EMPLOYEES RETIREMENT FUND	2.95%14.57M shares
STRS OHIO	2.73%13.47M shares
FMR LLC	2.39%11.77M shares
MORGAN STANLEY	2.01%9.9M shares
VAN ECK ASSOCIATES CORP	2.00%9.84M shares
BANK OF AMERICA CORP /DE/	1.99%9.8M shares
Cresset Asset Management, LLC	1.56%7.7M shares
UBS Group AG	1.49%7.35M shares
AMERIPRISE FINANCIAL INC	1.15%5.69M shares
ROYAL BANK OF CANADA	1.09%5.38M shares
WELLS FARGO & COMPANY/MN	0.97%4.78M shares
CITADEL ADVISORS LLC	0.96%4.75M shares
Generali Asset Management SPA SGR	0.88%4.35M shares
ROBERT WOOD JOHNSON FOUNDATION	0.86%4.22M shares
Sound Income Strategies, LLC	0.85%4.2M shares
PRIVATE MANAGEMENT GROUP INC	0.82%4.06M shares
HAMILTON LANE ADVISORS LLC	0.69%3.41M shares
JPMORGAN CHASE & CO	0.67%3.32M shares

Percentages use 493.14M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys20$2.49M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 2, 2026Form 4	Nicholson LoganPresident	BuyCommon Stock · indirect	400	$11.31	$4.5K	24.8K
Jun 2, 2026Form 4	Nicholson LoganPresident	BuyCommon Stock	2.6K	$11.31	$29.4K	63.2K
May 11, 2026Form 4	Kaye Eric A.Director	BuyCommon Stock	1.0K	$11.21	$11.2K	21.1K
Feb 27, 2026Form 4	Nicholson LoganPresident	BuyCommon Stock · indirect	4.5K	$11.32	$50.7K	24.4K
Feb 27, 2026Form 4	Nicholson LoganPresident	BuyCommon Stock	5.5K	$11.32	$62.5K	60.6K