Posts Record Revenue & EPS / Poised for Another Strong Year

Published: 3/5/2024

Author: Sid Rajeev, B.Tech, CFA, MBA

Posts Record Revenue & EPS / Poised for Another Strong Year - Main Image

*See important disclosures at the bottom of this report

Sector: Financial Services | Industry: Asset Management

Ticker Symbols:

OLY.TO - TSX 🔹

Rating and Key Data

Metrics	Value
Current Price	US $102.6
Fair Value	US $125.67
Risk	N/A
Week Range	US $65-122
Shares O/S (M)	2.41
Market Cap. (M)	US $247
Current Yield (%)	7.0
P/E (forward)	9.9
P/B	7.0

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Highlights

OLY is up 13% since our previous report in November 2023. OLY, through its wholly-owned subsidiary Olympia Trust Company, is Canada's premier trustee/custodian/administrator of self-directed registered investment accounts (such as RRSP/TFSA) for alternative assets.

In 2023, revenue was up 38% YoY amid higher interest rates, beating our estimate by 0.2%. EPS was up 69%, beating our estimate by 4.8%. Dividends increased 84% to $5.80/share, exactly in line with our estimate.

In 2023, 64% of revenue came from interest on unallocated client capital in cash accounts at major Canadian banks, up from 40% in 2022.

Despite the recent uptick in inflation, and downt

Rating and Key Data

Metrics	Value
Current Price	US $102.6
Fair Value	US $125.67
Risk	N/A
Week Range	US $65-122
Shares O/S (M)	2.41
Market Cap. (M)	US $247
Current Yield (%)	7.0
P/E (forward)	9.9
P/B	7.0