Fundamental Analysis
We are a highly differentiated and fast-growing, extreme value retailer of brand name merchandise at drastically reduced prices. Known for our assortment of “Good Stuff Cheap,” we offer customers a broad selection of brand name products, including housewares, food, books and stationery, bed and bath, floor coverings, toys and hardware. Our differentiated go-to market strategy is characterized by a unique, fun and engaging treasure hunt shopping experience, compelling customer value proposition and witty, humorous in-store signage and advertising campaigns. These attributes have driven our rapid growth and strong and consistent store performance.
Reasons to buy – Ollie’s Bargain Outlet Holdings
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see Ollie’s Bargain Outlet Holdings makes a margin of 39% on Gross Level and about 20% on Net level This means that out of $1 that it makes $0.2 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 26% in the revenue and the net profit figures grew by 186%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see Ollie’s Bargain Outlet Holdings makes a Return on Assets of 27% and Return of Equity of 560% which is pretty good.
Note that since this is a stock from the Retail space, they would carry a lot of inventory on their books and hence the Current Liabilities would be high. This means that the Debt/Equity would be high mostly due to the Current Liabilities rather than Long term debt.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Ollie’s Bargain Outlet Holdings to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
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