OLB Group (OLB) AI Stock Analysis

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OLB Group

(NASDAQ:OLB)

46Neutral

OLB's stock score is significantly impacted by its precarious financial condition, characterized by sustained losses and cash flow challenges. Although there is some short-term positive technical momentum, the long-term trend remains bearish. The stock's valuation metrics are unattractive due to negative earnings and the absence of a dividend. Overall, the stock is a high-risk investment requiring careful consideration of its financial restructuring efforts.

OLB Group (OLB) vs. S&P 500 (SPY)

Market Cap

$3.04M

Dividend YieldN/A

Average Volume (3M)1.31M

Price to Earnings (P/E)―

Beta (1Y)1.67

Revenue Growth-58.00%

EPS Growth60.27%

CountryUS

Employees15

SectorTechnology

Sector Strength67

IndustrySoftware - Application

Share Statistics

EPS (TTM)-2.30

Shares Outstanding2,368,075

10 Day Avg. Volume3,903,995

30 Day Avg. Volume1,309,331

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.47

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit0.80

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

OLB Group Business Overview & Revenue Model

Company DescriptionOLB Group (OLB) is a diversified business services company primarily operating in the financial technology sector. It offers a range of solutions including payment processing, eCommerce, and business management services. The company's core products include cloud-based point-of-sale systems, merchant services, and digital commerce solutions designed to support small to medium-sized businesses in enhancing their operational efficiency and customer engagement.

How the Company Makes MoneyOLB Group generates revenue primarily through its payment processing services, where it charges fees for facilitating transactions between merchants and their customers. This includes both fixed fees and a percentage of each transaction processed. Additionally, the company earns income from its subscription-based business management software, which provides tools for inventory management, sales tracking, and customer relationship management. OLB Group also partners with banks and financial institutions to expand its reach and enhance its service offerings, which contributes to its revenue through collaborative projects and service agreements.

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.

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.

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.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
30.57M	30.37M	16.71M	9.77M	10.29M
	Gross Profit
5.57M	7.22M	3.23M	3.76M	3.57M
	EBIT
-23.48M	-8.17M	-4.76M	-732.79K	-266.65K
	EBITDA
-16.40M	-918.53K	-2.97M	128.47K	747.90K
	Net Income Common Stockholders
-23.18M	15.75M	-5.10M	-2.82M	-2.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
452.67K	434.03K	3.47M	3.82M	507.62K
	Total Assets
19.73M	38.65M	45.53M	14.38M	11.87M
	Total Debt
407.86K	830.19K	406.35K	8.16M	12.89M
	Net Debt
228.85K	396.16K	-3.06M	4.34M	12.38M
	Total Liabilities
7.38M	4.02M	3.32M	8.63M	14.67M
	Stockholders Equity
12.23M	34.64M	42.21M	5.75M	-2.80M
Cash Flow		Free Cash Flow
816.81K	-3.48M	-29.17M	-476.66K	244.87K
	Operating Cash Flow
2.05M	-1.92M	-3.51M	-326.66K	244.87K
	Investing Cash Flow
-2.08M	-1.56M	-25.66M	-150.00K	0.00
	Financing Cash Flow
-221.83K	447.43K	28.82M	3.79M	151.16K

OLB Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.28

Price Trends

50DMA

1.24

Positive

100DMA

1.45

Negative

200DMA

1.83

Negative

Market Momentum

MACD

0.06

Negative

RSI

47.73

Neutral

STOCH

27.36

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 1.28 is above the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.24, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.36 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 0 New Risks

OLB Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.78B	10.47	-6.71%	2.99%	7.58%	-12.08%
PRSO	51 Neutral	$3.83M	―	-284.22%	―	5.99%	83.47%
OLB	46 Neutral	$3.04M	―	-145.26%	―	-58.00%	60.27%
LYTHF	42 Neutral	$626.89K	―		―	―	―
BOXL	38 Underperform	$3.43M	―	-93.10%	―	-23.10%	28.58%
CETX	37 Underperform	$2.93M	―	-1329.57%	―	-0.86%	63.99%

* Technology Sector Average

Performance Comparison

OLB

OLB Group

1.28

-2.81

-68.70%

PRSO

Peraso

0.89

-0.51

-36.43%

BOXL

Boxlight

1.54

-1.26

-45.00%

CETX

Cemtrex

1.64

-597.70

-99.73%

LYTHF

Lytus Technologies

0.02

-3.37

-99.41%

OLB Group Earnings Call Summary

Earnings Call Date:Mar 26, 2025

(Q4-2023)

% Change Since: 7.56%|

Next Earnings Date:May 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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.