Is OBDC a high-quality business?

AlphaMadera's AlphaQuality grade scores Blue Owl Capital Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how OBDC compares to a Buffett-style quality bar.

What is Blue Owl Capital Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to OBDC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes OBDC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

OBDC - Blue Owl Capital Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $13.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C- 45.4 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

D 35.8

5yr Avg ROIC 4.4% 32/100
Operating Margin Trend -0.17 pp/yr 45/100

Capital Efficiency

Weight: 15%

D 33.8

5yr Avg ROE 8.4% 52/100
5yr Share-Count CAGR 6.6% 0/100

Growth Quality

Weight: 25%

C+ 57.6

5yr Revenue CAGR 17.5% 95/100
5yr EPS CAGR -6.0% 8/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

B- 66.3

5yr FCF Margin 14.4% 81/100
5yr FCF/NI Conversion 0.53x 49/100

Balance Sheet

Weight: 10%

F 11.2

Net Debt / EBITDA 7.49x 0/100
Interest Coverage (EBIT/Int) 2.08x 30/100
Altman Z-Score 0.60 9/100

Stability

Weight: 5%

C- 49.1

EPS Volatility (σ/μ) 0.49 31/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 2 new buys; 1 added; 1 full exit.

Holders: 3 +2
Avg Δ position: +164.7%
New buys: 2
Full exits: 1

Soros new
Dalio sold -100%
Wood new

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.