Olaplex Holdings, Inc.

Consumer Discretionary
Package Goods/Cosmetics
www.olaplex.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.42B
PE 33
Debt $658.54M
Cash $538.83M
EV $1.54B
FCF $141.62M

Earnings

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Sales & Net Margins

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Earnings	$42.42M
EBIT	$81.05M
ROE	5%
ROA	5%
FCF	$141.62M
Equity	$879.73M
Growth Stability	37%
PE	33.37
PEG	-0.95
PB	1.61
P/FCF	10
P/S	3.26
Price/Cash	0.38
Debt/Equity	0.75
Debt/FCF	4.65
Net Margins	9%
Gross Margins	70%
Op. Margins	19%
Earnings CAGR	-35%
Sales Growth YoY	-4%
Sales Growth QoQ	15%
Sales CAGR	-5%
FCF CAGR	-9%
Equity CAGR	7%
Earnings Stability	-0.26
Earnings Growth YoY	-27%
Earnings Growth QoQ	156%

Earnings CAGR 5Y	-35%
Sales CAGR 5Y	-5%
FCF CAGR 5Y	-9%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	-18%
Sales CAGR 3Y	-18%
FCF CAGR 3Y	-16%
Equity CAGR 3Y	18%
Market Cap	$1.42B
Revenue	$433.65M
Assets	$1.76B
Total Debt	$658.54M
Cash	$538.83M
Shares Outstanding	661.59M
EV	1.54B
Earnings Score	6%
Moat Score	66%
Safety Score	58%
Final Score	43%
Working Capital	613.15M
Current Ratio	11.84
Gross Profit	$302.29M
Shares Growth 3y	1%
Equity Growth QoQ	2%
Equity Growth YoY	5%

Assets & ROA

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Stockholders Equity & ROE

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Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.

SEC Filings

Direct access to Olaplex Holdings, Inc. (OLPX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Olaplex Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Olaplex Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -35%

Stability -26%

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Olaplex Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Olaplex Holdings, Inc..

Years

Calculation mode

= $775M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$142M	$128M	$117M	$106M	$96M	$87M	$79M	$72M	$65M	$59M	$53M	$534M
DCF		$117M	$96M	$79M	$65M	$54M	$45M	$37M	$30M	$25M	$21M	$206M
Value	$775M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	14%	37%	35%	13%	9%
ROA	-	21%	21%	6%	5%
ROE	-	42%	31%	7%	5%

Net Margins (8.8%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.96	2.64	3.74	4.65
Debt over Equity	1.53	1.51	0.86	0.78	0.75
Growth Stability	-	-	-	37%	37%

Bad Debt/FCF ratio (4.65)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.75)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (37%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	112%	18%	-35%	-5%
Earnings YoY growth	-	462%	11%	-75%	-35%
Equity YoY growth	-	-1%	49%	8%	7%
FCF YoY growth	-	54%	28%	-30%	-9%