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OLB Group (OLB)
NASDAQ:OLB
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OLB Group
(NASDAQ:OLB)
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Rating:38Underperform
Price Target:
$1.00
▲(3.09% Upside)
OLB Group's overall stock score is primarily impacted by its poor financial performance and negative valuation metrics. The company's financial health is precarious, with sustained losses and liquidity concerns. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The absence of earnings call data and corporate events means these factors do not influence the score.
OLB Group (OLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.12M
Dividend YieldN/A
Average Volume (3M)77.80K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth-39.80%
EPS Growth77.33%
CountryUS
Employees15
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.66
Shares Outstanding8,768,132
10 Day Avg. Volume96,235
30 Day Avg. Volume77,795
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.21
Price to Sales (P/S)0.30
P/FCF Ratio-1.48
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit-5.52
Enterprise Value/Ebitda-1.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
OLB Group Business Overview & Revenue Model
Company DescriptionThe OLB Group, Inc. provides integrated financial and transaction processing services for small- and mid-sized merchants in the United States. The company operates a Crowdfunding platform used to facilitate a capital raise anywhere of various types of securities under Regulation D, Regulation Crowdfunding, Regulation A, and the Securities Act of 1933; a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and manage their retail businesses; payment processing solutions to merchants, which enable merchants to process credit and debit card-based internet payments for sales of their products; and payment gateway and virtual terminal with proprietary business management tools. It is also involved in the cryptocurrency mining activities; cryptocurrency-related lending and transactional services; and provision of ecommerce development and consulting services. The company was founded in 1993 and is headquartered in New York, New York.
How the Company Makes MoneyOLB generates revenue primarily through transaction fees charged to merchants for payment processing services. Each time a consumer makes a purchase through a merchant using OLB's services, the company earns a percentage of the transaction value. Additionally, OLB offers subscription-based services for its e-commerce technology solutions, providing businesses with tools for online sales, website management, and customer engagement. Key revenue streams include merchant fees, subscription fees, and value-added services such as fraud protection and analytics. The company also benefits from partnerships with payment networks and financial institutions, enhancing its service offerings and expanding its market reach, contributing significantly to its overall earnings.
OLB Group Earnings Call Summary
Earnings Call Date:Apr 15, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year with significant financial losses and increased expenses, primarily due to impairments and legal issues. Despite these setbacks, the company maintains a positive outlook with revenue growth, no debt, asset strength, and expansion in distribution services. The spin-off of DMINT and potential new services in Bodega locations are also highlighted as future growth opportunities.Q4-2023 Updates
Positive Updates
Revenue Growth
Revenue for 2023 was $30.6 million, a slight increase from $30.4 million in 2022, reflecting a 0.7% growth.
No Debt and Significant Assets
The company maintained zero debt and reported $19 million in assets.
Bodega Expansion
The company expanded its services to 1,800 distribution locations and plans to add more services, indicating potential revenue growth.
Positive Outlook on Spin-off
The spin-off of DMINT is active, with plans for a dividend distribution by the second quarter of 2024.
Negative Updates
Increased Operating Expenses
Operating expenses increased significantly to $54 million from $39 million in 2022, including a $13 million impairment.
Significant Net Loss
The net loss for 2023 was $23.3 million compared to $8.2 million in 2022, with a net loss per share of $0.65.
Impairment and Legal Issues
A $13 million impairment was recorded due to shutting down the FFS portfolio, accompanied by ongoing legal issues with FFS and Clear Fork Bank.
Reverse Stock Split
A reverse stock split is planned to meet NASDAQ requirements, which may indicate challenges in maintaining stock value.
Company Guidance
During the OLB Q4 2023 earnings call, the executives provided detailed guidance on the company's financial state and strategic initiatives. The company reported revenues of $30.6 million, marking a slight increase from $30.4 million in 2022, while operating expenses surged to $54 million from $39 million, including a significant $13 million impairment. The net loss widened to $23.3 million compared to $8.2 million the previous year, resulting in a net loss per share of $0.65. Legal expenses rose by $1.3 million due to ongoing litigation with FFS and Clear Fork Bank, and SG&A expenses increased, primarily due to bank fees and the acquisition of Black011. The company maintained zero debt and $19 million in assets. A spin-off of DMINT is underway, expected to bring dividend distribution by the second quarter of 2024. The executives expressed optimism about expanding their sales team and adding services, despite recent challenges with the FFS portfolio and ongoing legal disputes, aiming to stabilize the company in Q1 2024.OLB Group Financial Statement Overview
Summary
OLB Group is facing significant financial challenges. The income statement reveals sustained losses and declining revenues, while the balance sheet highlights a weak equity position and potential liquidity issues. Cash flow analyses show operational cash constraints. Despite some improvements in debt management, the overall financial health appears precarious, with urgent need for operational improvements and financial restructuring.Income Statement
The gross profit margin has been inconsistent, with a complete drop to zero in the latest year due to matching revenue and cost of goods sold. The net profit margin has been negative for all periods, with significant losses, especially in the most recent year. Revenue growth has been volatile, with a sharp decline from 2023 to 2024. EBIT and EBITDA margins are negative and have worsened over time, indicating operational inefficiencies.30
Negative
Balance Sheet
The debt-to-equity ratio has improved as liabilities decreased, but remains concerning due to negative equity in earlier periods. Return on equity is negative due to consistent net losses. The equity ratio is low, reflecting a weak capital structure. The balance sheet shows a decreasing asset base, indicating potential liquidity concerns.40
Negative
Cash Flow
Operating cash flow has been negative in recent periods, reflecting poor cash generation from operations. Free cash flow has also been negative, indicating insufficient cash to cover investments. The ratio of operating cash flow to net income is unfavorable, showing inefficiencies in converting income to cash.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.64M | 12.84M | 30.57M | 30.37M | 16.71M | 9.77M |
| Gross Profit | -1.51M | -763.20K | 5.57M | 4.14M | 1.10M | 3.76M |
| EBITDA | -7.56M | -8.03M | -16.39M | -929.10K | -2.97M | 128.47K |
| Net Income | -8.93M | -11.22M | -23.18M | -7.79M | -4.98M | -1.78M |
Balance Sheet | ||||||
| Total Assets | 12.25M | 12.68M | 19.73M | 38.65M | 45.53M | 14.38M |
| Cash, Cash Equivalents and Short-Term Investments | 3.54K | 27.44K | 452.67K | 684.03K | 3.47M | 3.82M |
| Total Debt | 108.00K | 375.05K | 407.86K | 830.19K | 406.35K | 8.16M |
| Total Liabilities | 6.99M | 9.49M | 7.38M | 4.02M | 4.15M | 8.63M |
| Stockholders Equity | 5.26M | 3.19M | 12.23M | 34.64M | 41.38M | 5.75M |
Cash Flow | ||||||
| Free Cash Flow | -2.30M | -2.60M | 816.81K | -3.48M | -29.17M | -476.66K |
| Operating Cash Flow | -2.30M | -2.60M | 2.05M | -1.92M | -3.51M | -326.66K |
| Investing Cash Flow | 0.00 | 332.89K | -2.08M | -1.56M | -25.66M | -150.00K |
| Financing Cash Flow | 2.27M | 2.12M | -221.83K | 447.43K | 28.82M | 3.79M |
OLB Group Technical Analysis
Negative
0.97
Price Trends
1.21
Negative
1.32
Negative
1.39
Negative
Market Momentum
-0.09
Positive
41.81
Neutral
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLB, the sentiment is Negative. The current price of 0.97 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.21, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLB.
OLB Group Risk Analysis
OLB Group disclosed 90 risk factors in its most recent earnings report. OLB Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our failure to meet the continued listing requirements of Nasdaq could result in a delisting of our securities. Q4, 2023
OLB Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $5.67M | 0.07 | 95.31% | ― | -19.32% | ― | |
44 Neutral | $3.92M | -0.50 | -60.58% | ― | -22.01% | 93.14% | |
41 Neutral | $11.06M | -0.04 | -269.14% | ― | -73.83% | 98.11% | |
40 Underperform | $2.28M | ― | ― | ― | -19.53% | 92.37% | |
38 Underperform | $9.12M | -0.24 | -149.68% | ― | -39.80% | 77.33% |
* Technology Sector Average
OLB
OLB Group
0.97
-0.88
-47.57%
MYSZ
My Size
0.79
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-47.68%
FRGT
Freight Technologies
0.83
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-85.79%
AGMH
AGM Group Holdings
2.81
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-96.90%
AUUD
Auddia
0.89
-8.51
-90.53%
TGL
Treasure Global, Inc.
0.63
-15.57
-96.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.