Olaplex Stock Discussion

Olaplex's Q4 results met expectations despite YoY revenue drop, and the company is working to stabilize demand. However, full-year revenue, EBITDA guidance, and operating margin didn't meet analysts' expectations, causing a 1.3% stock drop.

Despite a mixed Q3, personal care stocks have held their ground better than other sectors, with share prices up 18.5% on average since the previous earnings results. Coty's stock is up 20.9%, Olaplex's stock is up 74.6%, Nu Skin's stock is down 0.1%, Herbalife's stock is down 9.8%, and BellRing Brands' stock is up 22.3%.

Despite challenges, personal care stocks sector showed resilience with average share prices up 20.3%. Nature's Sunshine and Olaplex outperformed, while Nu Skin, USANA, and BeautyHealth underperformed.

The returns on capital for Olaplex Holdings aren't expected to rise given current trends. Rising capital employed without increased returns suggests investments may not yield high return on capital. Hence, Olaplex Holdings lacks typical signs of future multi-bagger potential.

The statutory profit of Olaplex Holdings may be understating its potential earnings, given its strong accrual ratio. Their EPS has seen significant growth over the past three years, indicating great profit prospects. However, detailed analysis is necessary before investing.