One-glance verdict
Undervalued
$0.43 our estimate vs market $0.20
Wall Street consensus: $3.00 (597.4% higher than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
The OLB Group, Inc.
OLB · NCM · Technology · Software - Infrastructure
Current price
$0.20
52-week range
$0.18 - $1.80
Market cap
$4.76M
Balance sheet
Healthy
-13.05x Concerning
Net cash $934.18K. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -26.9% to -98.5% over 3 years.
- Risk Return on equity was -70.8% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 55.9% over 3 years.
What this company does
The OLB Group, Inc.
The OLB Group provides software and services that help small and medium-sized U.S. businesses manage their finances, from accepting credit card payments to raising money from the public. A separate part of their business focuses on bitcoin mining (using powerful computers to create new digital currency), giving the company a stake in both traditional payment processing and the cryptocurrency market. This means its success is tied to both the health of small businesses and the value of bitcoin.
How the company got here
The OLB Group started in 1993, originally creating marketing materials for large companies like AT&T and Merrill Lynch. [1] It later shifted into the world of online shopping by building and running e-commerce websites for catalog companies. [1] This experience in online sales and payments led the company to focus on providing financial technology, or 'fintech,' services to small and medium-sized businesses across the United States. [2] More recently, the company expanded into the world of cryptocurrency by starting a Bitcoin mining operation. [5]
What it actually does
The OLB Group provides the tools that small and mid-sized businesses use to sell products and accept payments, both online and in physical stores. [6] Think of it as a one-stop-shop for a local store or website to manage its sales operations. [1] This includes everything from creating an online store and processing credit card payments to managing inventory and tracking sales. [13] The company also operates a separate business that generates Bitcoin. [5]
Fintech Services
This is the company's main business, where it provides a variety of digital tools to over 10,000 small and medium-sized merchants. [16] Businesses pay OLB for services like payment processing (the technology that lets them accept credit and debit cards), cloud-based software to manage their operations, and tools to build and run online stores. [13] This segment also includes a service called Moola Cloud, which offers financial products through a network of over 31,000 convenience stores and bodegas to communities that may not have easy access to traditional banks. [15, 17]
Bitcoin Mining Business
This smaller part of the company, which operates under the name DMint, focuses on creating new Bitcoin. [5, 7] It runs a facility in Tennessee with specialized computers that solve complex math problems to earn newly minted Bitcoin, a process called 'mining'. [12] The company earns revenue from the value of the Bitcoin it successfully mines. [3] OLB Group has announced plans to separate this Bitcoin mining business into its own independent company. [9]
What management is betting on now
The company's main focus is to separate its Bitcoin mining operation, DMint, into a standalone company. [9, 13] This move would allow the mining business to raise its own funds and let OLB concentrate on its core financial technology services. [13] Management is also working to expand its services for small stores like bodegas and convenience stores, aiming to provide more financial products to customers who have limited access to banks. [15, 18] They are also investing in technology, such as artificial intelligence (AI), to improve their software development and have focused on strengthening their financial health by reducing debt. [9, 15]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$1.28M
Net income
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Diluted EPS
-0.08
Operating cash flow
$-1.06M
Free cash flow
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Sources
Revenue
$1.66M
Net income
—
Diluted EPS
-0.08
Operating cash flow
$-1.34M
Free cash flow
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Sources
Revenue
$1.77M
Net income
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Diluted EPS
-0.48
Operating cash flow
$-39.26K
Free cash flow
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Sources
Revenue
$2.31M
Net income
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Diluted EPS
-0.13
Operating cash flow
$-115.50K
Free cash flow
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Sources
Revenue
$2.27M
Net income
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Diluted EPS
-0.66
Operating cash flow
$-1.02M
Free cash flow
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Sources
Revenue
$2.32M
Net income
$-1.09M
Diluted EPS
-0.47
Operating cash flow
$-155.84K
Free cash flow
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Sources
Revenue
$9.34M
Net income
$-4.58M
Diluted EPS
-3.55
Operating cash flow
$-1.01M
Free cash flow
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Sources
Revenue
$3.08M
Net income
$-1.63M
Diluted EPS
-0.92
Operating cash flow
$-376.66K
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $0.43 vs current price $0.20
Wall Street consensus is the average analyst price target: $3.00 (597.4% higher than our fair-value estimate).
Our most-likely fair value is $0.43 a share — about 117.0% above today's price of $0.20, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $934,184 - more cash than debt. Interest coverage -13.0x.
Net debt
$-934.18K
Interest coverage
-13.05x
The OLB Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OLB
BASELINE
The OLB Group, Inc.
Total debt $346.04K Interest coverage -13.05x This is the baseline the peer rows are being compared against.
Total debt $4.61M Interest coverage -45.30x Neither company has much profit cushion over interest right now.
Total debt $3.67M Interest coverage -265.33x Neither company has much profit cushion over interest right now.
Total debt $5.03M Interest coverage -33.68x Neither company has much profit cushion over interest right now.
Total debt $55.78K Interest coverage -14.00x Neither company has much profit cushion over interest right now.
What you should know
The case for and against OLB
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -26.9% to -98.5% over 3 years.
-
Return on equity was -70.8% last year — the company lost money on shareholders' equity.
-
Net debt grew 55.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
0.11x
Forward P/E
-3.96x
P/B
0.44x
P/S
0.68x
EV/EBITDA
-0.85x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-30.9%
Operating margin
-98.5%
Net margin
-68.2%
ROE
-70.8%
ROA
-24.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
0.40x
Quick ratio
0.32x
Total debt
$346.04K
Total cash
$1.28M
Growth
How the business has been compounding
Revenue TTM
$7.02M
Revenue 5Y CAGR
-15.1%
EPS TTM
1.77
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-2.55M
Free CF TTM
$-3.83M
FCF margin
-54.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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