Ollie's Bargain Outlet Holdings, Inc. Fundamental Analysis (NASDAQ: OLLI)
Ollie's Bargain Outlet Holdings, Inc. Fundamental Analysis (NASDAQ: OLLI)
Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) shows moderate financial fundamentals with a PE ratio of 16.41, profit margin of 9.79%, and ROE of 14.58%. The company generates $2.8B in annual revenue with strong year-over-year growth of 16.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OLLI's fundamental strength across five key dimensions:
Efficiency Score
WeakOLLI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOLLI trades at attractive valuation levels.
Growth Score
ExcellentOLLI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOLLI maintains a strong and stable balance sheet.
Profitability Score
WeakOLLI struggles to sustain strong margins.
Key Financial Metrics
Is OLLI Expensive or Cheap?
P/E Ratio
OLLI trades at 16.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OLLI's PEG of 0.57 indicates potential undervaluation.
Price to Book
The market values Ollie's Bargain Outlet Holdings, Inc. at 2.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.13 times EBITDA. This is generally considered low.
How Well Does OLLI Make Money?
Net Profit Margin
For every $100 in sales, Ollie's Bargain Outlet Holdings, Inc. keeps $9.79 as profit after all expenses.
Operating Margin
Core operations generate 13.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.58 in profit for every $100 of shareholder equity.
ROA
Ollie's Bargain Outlet Holdings, Inc. generates $9.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ollie's Bargain Outlet Holdings, Inc. produces operating cash flow of $342.77M, showing steady but balanced cash generation.
Free Cash Flow
Ollie's Bargain Outlet Holdings, Inc. produces free cash flow of $224.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.71 in free cash annually.
FCF Yield
OLLI converts 5.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How OLLI Stacks Against Its Sector Peers
| Metric | OLLI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.41 | 21.00 | Better (Cheaper) |
| ROE | 14.58% | 628.00% | Weak |
| Net Margin | 9.79% | -2493.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 2.23 | 2.25 | Strong Liquidity |
| ROA | 9.04% | 299.00% | Weak |
OLLI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ollie's Bargain Outlet Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.64%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
4.67%
Industry Style: Defensive, Dividend, Low Volatility
GrowingFCF CAGR
-13.33%
Industry Style: Defensive, Dividend, Low Volatility
Declining