Olo logged a -2.9% change during Friday's afternoon session, and is now trading at a price of $6.13 per share. The S&P 500 index moved 0.6% and the Nasdaq posted a 0.2% change. OLO's trading volume is 790,024 compared to the stock's average volume of 1,439,200.
Over the last 52 weeks, the stock moved -71.7%, with a high of $22.96 and a low of $6.09. During this time, the stock lagged the S&P 500 index by -51.9%. Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. The small-cap Technology company has 639 full time employees and is based in New York, NY. Olo has not offered any dividends in the last year.
Snapshot of the Company's Unconvincing Cash Flows and Profitability:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $32 | $51 | $98 | $149 |
| Revenue Growth | n/a | 59.4% | 94.2% | 51.8% |
| Gross Margins | 65.98% | 69.25% | 81.03% | 79.36% |
| Gross Margins Growth | n/a | 4.96% | 17.01% | -2.06% |
| Operating Margins | -27.61% | -10.04% | 16.35% | -18.73% |
| Operating Margins Growth | n/a | 63.64% | 262.85% | -214.56% |
| Earnings Per Share | n/a | $-0.48 | $0.0 | $-0.34 |
| EPS Growth | n/a | n/a | 100.0% | n/a |
| Free Cash Flow (MM) | $-4 | $1 | $19 | $14 |
| FCF Growth | n/a | 124.47% | 1721.96% | -26.09% |
| Net Debt / EBITDA | n/a | 1.59 | -4.51 | 19.57 |
Basic Valuation Metrics Show Olo Is Overvalued:
Compared to the Technology sector's average of 26.5, Olo has a trailing twelve month price to earnings (P/E) ratio of 29.2 and, based on its Eps guidance of 0.08, an expected P/E ratio of 76.6. Olo's price to book (P/B) ratio is 1.4 compared to its sector average of 5.57.
As of the date of publication, the company is trading 35.2% above its fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 0.21 * 4.349) = $4.53
There is Mixed Market Sentiment About Olo:
6 analysts are following Olo and have set target prices ranging from $8.5 to $12 per share. On average, they have given the company a rating of buy. At today's prices, OLO is trading -38.21% away from its average analyst target price of $9.92 per share, implying an analyst consensus of strong upside potential for the stock. The company has an above average percentage of its shares sold short since 11.5% of the company's shares are tied to short positions. Institutions own 96.3% of Olo's shares, while the insider ownership rate stands at 3.09%. The biggest shareholder is Raine Capital Llc with a 30.81% stake in the company worth approximately $200,118,837.00.
