NasdaqGS:ZEUS

Stock Analysis Report

Executive Summary

Olympic Steel, Inc. processes and distributes metal products in the United States and internationally.

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (0.2%) are lower than last year (2.5%)



Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Olympic Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZEUS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

ZEUS

2.5%

US Metals and Mining

0.7%

US Market


1 Year Return

-1.0%

ZEUS

13.8%

US Metals and Mining

18.2%

US Market

Return vs Industry: ZEUS underperformed the US Metals and Mining industry which returned 13.8% over the past year.

Return vs Market: ZEUS underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

ZEUSIndustryMarket
7 Day5.2%2.5%0.7%
30 Day22.3%4.2%1.5%
90 Day19.3%8.4%5.0%
1 Year-0.4%-1.0%17.3%13.8%20.8%18.2%
3 Year-32.8%-33.7%3.4%-2.1%45.2%35.8%
5 Year12.5%9.9%34.5%23.7%71.6%52.7%

Price Volatility Vs. Market

How volatile is Olympic Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Olympic Steel undervalued compared to its fair value and its price relative to the market?

58.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZEUS ($17.46) is trading above our estimate of fair value ($8.31)

Significantly Below Fair Value: ZEUS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZEUS is poor value based on its PE Ratio (58.6x) compared to the Metals and Mining industry average (12.3x).

PE vs Market: ZEUS is poor value based on its PE Ratio (58.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZEUS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZEUS is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Olympic Steel forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ZEUS's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if ZEUS's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZEUS's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: ZEUS's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ZEUS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Olympic Steel performed over the past 5 years?

60.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZEUS has high quality earnings.

Growing Profit Margin: ZEUS's current net profit margins (0.2%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: ZEUS's earnings have grown significantly by 60.6% per year over the past 5 years.

Accelerating Growth: ZEUS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZEUS had negative earnings growth (-91.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (0.7%).


Return on Equity

High ROE: ZEUS's Return on Equity (1.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Olympic Steel's financial position?


Financial Position Analysis

Short Term Liabilities: ZEUS's short term assets ($465.9M) exceed its short term liabilities ($117.6M).

Long Term Liabilities: ZEUS's short term assets ($465.9M) exceed its long term liabilities ($272.5M).


Debt to Equity History and Analysis

Debt Level: ZEUS's debt to equity ratio (73.5%) is considered high.

Reducing Debt: ZEUS's debt to equity ratio has reduced from 88.1% to 73.5% over the past 5 years.

Debt Coverage: ZEUS's debt is well covered by operating cash flow (49.4%).

Interest Coverage: ZEUS's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: ZEUS has a high level of physical assets or inventory.

Debt Coverage by Assets: ZEUS's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Olympic Steel's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: ZEUS's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ZEUS's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: ZEUS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ZEUS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ZEUS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZEUS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Olympic Steel's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Rick Marabito (55yo)

0.9yrs

Tenure

US$1,489,865

Compensation

Mr. Richard T. Marabito, also known as Rick, is the Director & CEO of Olympic Steel Inc since January 1, 2019.He was the Chief Financial Officer of Olympic Steel Inc. from March 2000 to January 1 2019. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD1.49M) is above average for companies of similar size in the US market ($USD1.12M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: ZEUS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

65yo

Average Age

Experienced Board: ZEUS's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,70407 Jun 19
Ralph Della Ratta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,925
Max PriceUS$12.83
BuyUS$100,80107 Mar 19
Richard Marabito
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,320
Max PriceUS$18.95

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Siegal (67yo)

    Executive Chairman

    • Tenure: 25.9yrs
    • Compensation: US$2.09m
  • Rick Marabito (55yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$1.49m
  • David Wolfort (67yo)

    President & Director

    • Tenure: 32.9yrs
    • Compensation: US$1.92m
  • Ken Sloan

    Vice President of Human Resources

    • Tenure: 3.8yrs
  • Richard Manson (50yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: US$763.17k
  • Donald McNeeley (65yo)

    President of Chicago Tube & Iron

    • Tenure: 8.4yrs
    • Compensation: US$1.80m
  • Christopher Kelly

    Secretary

    • Tenure: 0yrs
  • Andrew Greiff (58yo)

    Executive VP & COO

    • Tenure: 3.3yrs
    • Compensation: US$1.40m
  • Lisa Christen

    Treasurer & Corporate Controller

    • Tenure: 9.8yrs
  • John Mooney

    President & COO of Flat Rolled

    • Tenure: 2.9yrs

Board Members

  • Ralph Della Ratta (65yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$144.36k
  • Michael Siegal (67yo)

    Executive Chairman

    • Tenure: 25.9yrs
    • Compensation: US$2.09m
  • Rick Marabito (55yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$1.49m
  • David Wolfort (67yo)

    President & Director

    • Tenure: 32.9yrs
    • Compensation: US$1.92m
  • Art Anton (62yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$151.24k
  • Mike Rippey (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$143.74k
  • Idie Kesner (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$57.50k
  • Howard Goldstein (67yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$146.86k
  • Dirk Kempthorne (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$144.36k
  • Vanessa Whiting

    Independent Director

    • Tenure: 0.08yrs

Company Information

Olympic Steel, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Olympic Steel, Inc.
  • Ticker: ZEUS
  • Exchange: NasdaqGS
  • Founded: 1954
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$191.986m
  • Shares outstanding: 11.00m
  • Website: https://www.olysteel.com

Number of Employees


Location

  • Olympic Steel, Inc.
  • 5096 Richmond Road
  • Bedford Heights
  • Ohio
  • 44146
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZEUSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1994
OYSDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994

Biography

Olympic Steel, Inc. processes and distributes metal products in the United States and internationally. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:47
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.