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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Olympia Financial Group (OLY-T) has received positive reviews from experts, who are optimistic about its future growth potential. The company has reported a significant increase in net income and supports a strong ROE. Its prudent use of cash reserves to retire debt, good dividend payout ratio, and upside potential of 22% make it an attractive investment option. Additionally, OLY is considered a high-quality, capital light business that consistently raises dividends over time. Despite being ill-liquid, the stock has shown strong growth and good valuation, making it a promising choice for investors.

Consensus
Positive
Valuation
Undervalued
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

OLY’s earnings are quite sensitive to the movement of interest rates, with rates coming down, earnings could be under pressure in the near term. This sensitivity to interest rates is inherent and quite common among financial companies. In the near term, OLY’s earnings could face a headwind due to a decrease in rate and, therefore, limited prospect of significant dividend growth. That being said, OLY has done really well over the last interest rate cycle. Also, the company’s service revenue is more predictable. This is an inherent risk of investing in financial companies. OLY is a small cap and quite under the radar to most investors, but its management track record is really impressive, we like the name here and would be comfortable to hold over the long term.
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management / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Mar 21/24, Up 6.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with OLY is progressing well.  To remain disciplined, we recommend trailing up the stop (from $83) to $98 at this time. 

management / diversified
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

After recently reporting a 69% increase in net income, we select OLY as a TOP PICK.  The Canadian based financial company trades at 11x earnings and supports a 79% ROE.  It has been prudently using some cash reserves to retire debt.  It pays a good dividend, backed by a payout ratio under 60% of cash flow.  We recommend setting a stop-loss at $83, looking to achieve $126 — upside potential of 22%.  Yield 5.7%

(Analysts’ price target is $126.64)
management / diversified
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Higher interest income would definitely be a tailwind for OLY’s business as interest income flows straight to the bottom line. For example, in FY2023 interest income grew 100%, and now accounts for around 50% of the company’s total revenue. In a low interest rates environment, the business may not do sensational, but would likely still be just fine. In the past 10 years, interest rates were quite low, but OLY’s operating results were still quite healthy and consistent. We may not consider OLY as a compounder as the company did not reinvest much of its earnings to grow, but we would certainly consider OLY as a high-quality, capital light business that would consistently raise dividends over time. We would be comfortable owning OLY over the long term.
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management / diversified
BUY

It is very ill-liquid so he hasn't bought it. However for a small retail investor it has great growth and good valuation along with a management team that has done well. Canadians have a wide array of larger cap financial stocks to choose from and tend to forget the small cap financials so it is good to find these specialty lenders. It is up 36% in a year.

management / diversified
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

Business is certainly good. 
OLY has strong insider ownership, good growth in earnings, solid cash flow and a good balance sheet. 
Revenue rose 47% last year, with interest and trust income up more than 100%. 
Its small size adds risk, and no analysts cover it. 
But the dividend has doubled since 2017, it is cheap, and shares are up 53% in a year. 
It is hard to argue against it right now.  
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management / diversified
COMMENT

Very well run, kind of niche financial company. Very sharp management that knows how to make money. They paid a dividend, which may explain the drop in the share price. Not a huge growth business, but pays a regular dividend of around 7%. If you are looking for income, you are well served.

management / diversified
COMMENT

A small trust company operation. Have done quite well in Calgary. Just declared a special dividend. If you buy this stock now, you are not going to get special dividends all the time and you are back into a relatively illiquid stock. The stock will probably go right back to where it was trading before, once the dividend is paid. If you buy you better be ready to hold it for a long time.

management / diversified
COMMENT
All you are going to get in the near term is the 6.9% yield. If you are comfortable with 6.9% and low prospects of it being raised, you are fine. There are better choices in the sector. His favourite is Carfinco Financial (CFN-T). (See Top Picks.)
management / diversified
WEAK BUY
Dividend is sustainable. The rest of the business is not growing that fast so he doesn’t see the dividend growing.
management / diversified
COMMENT
Provincially regulated trust Company. Just reported Q2 earnings and the results were fantastic. 6% dividend is very safe. Very well managed company. Very illiquid in that it can go weeks without trading any shares.
management / diversified
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Olympia Financial Group(OLY-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for Olympia Financial Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Olympia Financial Group(OLY-T) Frequently Asked Questions

What is Olympia Financial Group stock symbol?

Olympia Financial Group is a Canadian stock, trading under the symbol OLY-T on the Toronto Stock Exchange (OLY-CT). It is usually referred to as TSX:OLY or OLY-T

Is Olympia Financial Group a buy or a sell?

In the last year, 4 stock analysts published opinions about OLY-T. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Olympia Financial Group.

Is Olympia Financial Group a good investment or a top pick?

Olympia Financial Group was recommended as a Top Pick by on . Read the latest stock experts ratings for Olympia Financial Group.

Why is Olympia Financial Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Olympia Financial Group worth watching?

4 stock analysts on Stockchase covered Olympia Financial Group In the last year. It is a trending stock that is worth watching.

What is Olympia Financial Group stock price?

On 2024-07-23, Olympia Financial Group (OLY-T) stock closed at a price of $94.8.