Q: HI Peter,
I want to get your thoughts on Olympia Financial (OLY) and its big run up. What do you think of its current valuation - is it expensive and what do you think of it in a TFSA. Also can you comment on its growth and ROE. Would you add it or wait for a pull back.
I want to get your thoughts on Olympia Financial (OLY) and its big run up. What do you think of its current valuation - is it expensive and what do you think of it in a TFSA. Also can you comment on its growth and ROE. Would you add it or wait for a pull back.
5i Research Answer:
OLY is up 70% in the past year, in addition to its 6.7% dividend (which has shown good growth). It can be considered very cheap at 11X earnings. The balance sheet is solid and growth has been quite solid. That being said, EPS is expected to flat line this year. Insiders own 9.7% directly and 25.4% through a holding company so trading can be thin. It has one analyst. Overall, we like a lot here. It has been well-managed and is shareholder friendly. We think it would be fine in a TFSA. ROE last year (full year 2022) was a very impressive 46%. We would be comfortable buying.