OVB Holding (O4B) AI Stock Analysis

• Market Cap: €275.05M
• Dividend Yield: 5.18%
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.15
• Revenue Growth: 11.99%
• EPS Growth: -38.09%
• Country: DE
• Employees: 793
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.18
• Shares Outstanding: 14,251,314
• 10 Day Avg. Volume: 53
• 30 Day Avg. Volume: 51
• PEG Ratio: 0.42
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 9.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): €459.73M

• Rating: 70 Outperform
• Price Target: €21.00 ▲(11.11% Upside)

OVB Holding's overall stock score reflects a solid financial foundation with low leverage and consistent revenue growth. However, declining profit margins and cash conversion challenges are areas of concern. The technical analysis suggests a balanced momentum with potential bearish trends, while the valuation is moderate with an attractive dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market presence and effective sales strategy, supporting long-term business sustainability.

Low Leverage

Low leverage enhances financial stability, providing flexibility for future investments and reducing risk during economic downturns.

Free Cash Flow Growth

Strong free cash flow growth enhances the company's ability to reinvest in business operations, pay dividends, and reduce debt.

Negative Factors

Declining Profit Margins

Decreasing profit margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability and competitiveness.

Cash Conversion Challenges

Challenges in converting income into cash can strain liquidity, limiting the company's ability to finance operations and growth initiatives.

Decreasing Return on Equity

A declining ROE may suggest inefficiencies in using shareholder capital, potentially affecting investor confidence and future equity financing.

OVB Holding Business Overview & Revenue Model

Company Description

OVB Holding AG is a leading financial services provider based in Europe, specializing in the distribution of financial products and services. The company operates primarily in the financial advisory sector, offering a wide range of products including insurance, investment, and retirement solutions. OVB serves clients through a network of independent financial advisors, ensuring personalized and comprehensive financial planning tailored to individual needs. With a strong presence in multiple European markets, OVB focuses on empowering clients to achieve their financial goals through expert guidance and a diverse portfolio of offerings.

How the Company Makes Money

OVB Holding generates revenue primarily through commissions and fees earned from the sale of financial products, including insurance policies, investment funds, and retirement plans. The company operates on a commission-based model where financial advisors earn a percentage of the sales they generate. Additionally, OVB may receive ongoing management fees for maintaining client accounts or servicing existing financial products. Key revenue streams include partnerships with various financial institutions, allowing OVB to offer a broad range of products to its clients. The company's success is bolstered by its extensive network of independent advisors, which enhances its market reach and client acquisition capabilities.

OVB Holding Financial Statement Overview

Summary

OVB Holding shows a stable financial position with consistent revenue growth and strong balance sheet metrics. However, declining profit margins and negative free cash flow growth in TTM suggest potential challenges in maintaining profitability. The company should focus on improving operational efficiency to enhance margins and cash flow.

Income Statement

OVB Holding has demonstrated consistent revenue growth, with a 2.52% increase in TTM. However, margins have slightly declined, with the TTM gross profit margin at 19.34% and net profit margin at 3.86%, indicating some pressure on profitability. The EBIT and EBITDA margins have also decreased compared to previous periods, suggesting operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.11, indicating prudent financial management. The return on equity is robust at 16.73%, reflecting effective use of shareholder funds. The equity ratio stands at 30.88%, showcasing a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 21.75% in TTM, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.19, and the free cash flow to net income ratio is strong at 0.77, indicating good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.24M	408.64M	354.35M	331.95M	320.70M	270.56M
Gross Profit	78.61M	89.99M	78.07M	76.67M	70.54M	57.06M
EBITDA	29.59M	37.22M	29.55M	30.22M	30.27M	21.99M
Net Income	11.45M	19.22M	14.31M	14.67M	15.71M	10.48M
Balance Sheet
Total Assets	304.81M	295.88M	272.96M	261.11M	257.82M	233.48M
Cash, Cash Equivalents and Short-Term Investments	130.13M	132.87M	120.79M	122.49M	128.91M	117.87M
Total Debt	9.92M	2.45M	2.44M	2.01M	2.13M	2.31M
Total Liabilities	211.57M	194.16M	177.26M	167.60M	166.45M	143.48M
Stockholders Equity	92.81M	101.17M	95.04M	93.00M	91.09M	89.46M
Cash Flow
Free Cash Flow	19.67M	22.16M	9.94M	9.13M	26.80M	23.76M
Operating Cash Flow	27.46M	32.60M	18.36M	15.80M	33.74M	30.06M
Investing Cash Flow	-13.14M	-15.79M	-11.14M	6.39M	-14.39M	297.00K
Financing Cash Flow	-17.67M	-16.06M	-15.86M	-15.74M	-17.31M	-13.47M

OVB Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:O4B, the sentiment is Positive. The current price of 18.9 is below the 20-day moving average (MA) of 19.24, below the 50-day MA of 19.17, and below the 200-day MA of 20.75, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:O4B.

OVB Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O4B	70 Outperform	€275.05M	24.02	12.16%	5.18%	11.99%	-38.09%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JDC	59 Neutral	€320.64M	58.91	9.90%	―	17.04%	79.96%

OVB Holding Corporate Events

OVB Holding AG Announces CFO Departure

OVB Holding AG announced the immediate departure of its Chief Financial Officer, Frank Burow, from the Executive Board. In the interim, CEO Mario Freis and COO Heinrich Fritzlar will assume Burow’s responsibilities until a successor is appointed. This leadership change may have implications for the company’s strategic direction and operational management.