Owl Rock price build-up is difficult to understand
 | By Vlad Skutelnik | Macroaxis Story |
Despite somewhat strong basic indicators, Owl Rock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors. Owl Rock Capital holds recent Real Value of $16.99 per share. The prevailing price of the company is $17.72. At this time the company appears to be overvalued. This module determines value of Owl Rock Capital from analyzing the company fundamentals such as Operating Margin of 88.04 , Shares Outstanding of 389.16 M and Return On Equity of 0.0009 as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
This firm currently holds 2.46 B in liabilities with Debt to Equity (D/E) ratio of 41.5 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. The company has Current Ratio of 1.62 which is within standard range for the sector. Owl Rock dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.1 per share. The company has Profit Margin (PM) of 0.01 % which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 88.04 % which suggests for every 100 dollars of sales it generated a net operating income of 0.88.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Owl Rock income statement, its balance sheet, and the statement of cash flows. Potential Owl Rock investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Owl Rock investors may use each financial statement separately, they are all related. The changes in Owl Rock's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Owl Rock's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Owl Rock fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Owl Rock performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Owl Rock shares is the value that is considered the true value of the share. If the intrinsic value of Owl is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Owl Rock. Please read more on our fundamental analysis page. And What about dividends?
A dividend is the distribution of a portion of Owl Rock earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Owl Rock dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Owl one year expected dividend income is about USD0.57 per share.
Investing in dividend-paying stocks, such as Owl Rock Capital is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Owl Rock must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Owl Rock. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Owl Rock's Liquidity
Owl Rock financial leverage refers to using borrowed capital as a funding source to finance Owl Rock Capital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Owl Rock financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Owl Rock's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Owl Rock's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Owl Rock's total debt and its cash.
Is Owl Rock valued correctly by the market?
Owl Rock Capital has beta of 1.88. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Owl Rock will likely underperform. The modest gains experienced by current holders of Owl Rock may encourage investors to take a closer look at the company as it closed today at a share price of 17.62 on 1.000 in trading volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.9377. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Owl Rock defends 3.2 z score. Owl Rock is selling at 17.72. That is 0.74 percent increase. Started trading at 17.72. Owl Rock Tangible Assets Book Value per Share is increasing over the last 4 years. The previous year value of Owl Rock Tangible Assets Book Value per Share was 44.78. Moreover, Owl Rock Weighted Average Shares Diluted is decreasing over the last 4 years. To conclude, our analysis show that Owl Rock Slowly supersedes market. The company is overvalued and projects probability of financial unrest low for the next 2 years. Our primary buy or sell advice on the company is Cautious Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Owl Rock Capital. Please refer to our Terms of Use for any information regarding our disclosure principles.