This is a step-by-step stock review to answer the question, is Ollie’s Bargain Outlet (OLLI) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Ollie’s Bargain Outlet (OLLI) stock a good buy?
- Ollie’s Bargain Outlet Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Ollie’s Bargain Outlet (OLLI) stock a good buy?
1.Ollie’s Bargain Outlet (OLLI) Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- 1982: Ollie’s Bargain Outlet was founded by Morton Bernstein, Mark Butler, Harry Coverman, and Oliver “Ollie” Rosenberg in Mechanicsburg, Pennsylvania.
- Early Growth: Gained popularity for its “Good Stuff Cheap” slogan and diverse product offerings, ranging from housewares to books.
- 1990s: Expanded throughout Pennsylvania and neighboring states, establishing a strong regional presence.
- 2000s: Continued growth through opening new stores and acquiring other discount retailers.
- 2015: Completed an initial public offering (IPO), raising capital to fuel further expansion across the United States.
- 2019: Mark Butler, co-founder and CEO, passed away; John Swygert took over as CEO, continuing the company’s growth trajectory.
- National Expansion: Rapidly grew to over 400 stores in 29 states, becoming one of America’s largest closeout retailers.
- Product Sourcing: Maintained a competitive edge by sourcing excess inventory, closeouts, and salvage merchandise at deep discounts, passing the savings on to customers.
- Customer Loyalty: Built a strong customer base with its rewards program, Ollie’s Army, offering exclusive deals and discounts to members.
- Community Involvement: Engaged in philanthropic efforts, supporting local communities through charitable donations and partnerships.
Ollie’s Bargain Outlet’s consistent growth, effective sourcing strategy, and customer loyalty programs have made it a leading player in the discount retail sector.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 78/100
- MOS: 42%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Ollie’s Bargain Outlet (OLLI) makes money:
- Retail Sales: Generates revenue from selling a wide range of discounted and closeout merchandise, including home goods, electronics, apparel, and food.
- Product Sourcing: Earns from purchasing excess inventory, overstocks, and discontinued items from manufacturers and retailers at reduced prices.
- Private Label Products: Profits from selling private label or exclusive brand products at bargain prices.
- Seasonal and Promotional Items: Gains from offering seasonal and promotional items, which drive higher sales volume during peak times.
- Clearance Items: Makes money from selling clearance and liquidation items at discounted prices to move inventory quickly.
Here are a few of the other companies that Ollie’s Bargain Outlet has acquired over the years.
- Big Lots
- The Home Depot
- CarMax
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Ollie’s Bargain Outlet stacks up against other companies.
- Ollie’s Bargain Outlet Holdings, Inc.(OLLI) – 78
- PriceSmart, Inc.(PSMT) – 78
- Costco Wholesale Corporation.(COS) – 67
- Dollar Tree, Inc.(DLTR) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Leadership Transition:John Swygert Successfully led the company after the passing of founder Mark Butler, ensuring stability and continuity.
- Revenue Growth: Achieved significant revenue growth, consistently increasing sales and profitability during his tenure.
- Store Expansion: Oversaw the expansion of the store network, opening new locations across the United States and increasing the company’s market presence.
- Operational Efficiency: Improved operational efficiencies and cost management, enhancing overall company performance.
- Customer Loyalty: Strengthened customer loyalty through effective marketing strategies and a focus on delivering value to shoppers.
- Adaptation to Market Changes: Adapted the business model to changing retail landscapes, including e-commerce challenges and competition.
- Employee Engagement: Fostered a positive company culture and improved employee engagement, contributing to better customer service and operational success.
- Strategic Acquisitions: Led strategic acquisitions to diversify the product offering and strengthen the company’s market position.
John Swygert’s achievements at Ollie’s Bargain Outlet include strong revenue growth, store expansion, improved operational efficiency, and maintaining a loyal customer base.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Ollie’s Bargain Outlet (OLLI) is 62/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Ollie’s Bargain Outlet (OLLI) stock a good buy?
Some of the top questions investors can have is Ollie’s Bargain Outlet (OLLI) stock a good buy or should I buy Ollie’s Bargain Outlet (OLLI) stock?
Ollie’s Bargain Outlet presents a strong investment opportunity due to its impressive revenue growth and expanding profitability. The company’s unique discount retail model attracts cost-conscious shoppers with a wide range of bargain merchandise, driving consistent performance. Ollie’s has effectively executed a strategy of expanding its store network across the U.S., increasing its market presence and customer base. Its operational efficiency is enhanced by effective inventory management and cost control measures, contributing to solid profitability. Additionally, Ollie’s has demonstrated resilience in varying economic conditions, maintaining strong performance even during economic downturns. However, potential investors should be aware of the competitive nature of the discount retail sector and possible economic challenges affecting consumer spending. Overall, Ollie’s Bargain Outlet offers strong growth potential, a distinctive retail approach, and operational effectiveness, making it an appealing investment in the discount retail space
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To truly know if Ollie’s Bargain Outlet is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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