Ollie's Bargain Outlet Holdings, Inc. (OLLI) Company Bio
Ollie's Bargain Outlet Holdings is a retailer of closeouts and excess inventory of various categories, including housewares, food, books and stationery, bed and bath, floor coverings, toys and hardware. The company was founded in 1982 and is based in Harrisburg, Pennsylvania.
OLLI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ollie's Bargain Outlet Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ollie's Bargain Outlet Holdings Inc ranked in the 69th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for OLLI, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 94. Notably, its equity weight is greater than 83.56% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than only 17.56% of the free cash flow producing stocks we're observing.
Ollie's Bargain Outlet Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -652.17. This coverage rate is greater than that of just 0.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Ollie's Bargain Outlet Holdings, Inc. (OLLI) Q2 2020 Earnings Conference Call August 27, 2020 4:30 P.M. ET Company Participants Jean Fontana - Investor Relations John Swygert - President and Chief Executive Officer Jay Stasz - Senior Vice President and Chief Financial Officer Conference Call Participants Matthew Boss - JPMorgan Chandni...