Despite its growth, NASDAQ:OLLI remains within the realm of affordability.

Last update: Feb 16, 2024

OLLIE'S BARGAIN OUTLET HOLDI (NASDAQ:OLLI) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:OLLI is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Deciphering NASDAQ:OLLI's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:OLLI was assigned a score of 7 for growth:

OLLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.59%, which is quite impressive.
Looking at the last year, OLLI shows a quite strong growth in Revenue. The Revenue has grown by 12.66% in the last year.
Measured over the past years, OLLI shows a quite strong growth in Revenue. The Revenue has been growing by 11.15% on average per year.
The Earnings Per Share is expected to grow by 30.47% on average over the next years. This is a very strong growth
OLLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.44% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:OLLI boasts a 5 out of 10:

Based on the Price/Earnings ratio, OLLI is valued a bit cheaper than 68.75% of the companies in the same industry.
OLLI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OLLI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as OLLI's earnings are expected to grow with 30.47% in the coming years.

Health Examination for NASDAQ:OLLI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:OLLI has received a 7 out of 10:

An Altman-Z score of 5.94 indicates that OLLI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.94, OLLI belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
The Debt to FCF ratio of OLLI is 0.01, which is an excellent value as it means it would take OLLI, only 0.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OLLI (0.01) is better than 96.88% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that OLLI is not too dependend on debt financing.
OLLI has a better Debt to Equity ratio (0.00) than 84.38% of its industry peers.
OLLI has a Current Ratio of 2.79. This indicates that OLLI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.79, OLLI belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.

Profitability Insights: NASDAQ:OLLI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:OLLI, the assigned 6 is noteworthy for profitability:

The Return On Assets of OLLI (7.20%) is better than 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.98%, OLLI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Profit Margin, with a value of 7.89%, OLLI belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Operating Margin of OLLI (9.87%) is better than 75.00% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of OLLI

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.