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ZEUS

Olympic Steel NasdaqGS:ZEUS Stock Report

Last Price

US$26.03

Market Cap

US$289.7m

7D

-3.2%

1Y

-12.4%

Updated

04 Jul, 2022

Data

Company Financials +
ZEUS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends3/6

ZEUS Stock Overview

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

Olympic Steel Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Olympic Steel
Historical stock prices
Current Share PriceUS$26.03
52 Week HighUS$43.18
52 Week LowUS$19.92
Beta1.62
1 Month Change-24.96%
3 Month Change-25.63%
1 Year Change-12.42%
3 Year Change104.00%
5 Year Change41.47%
Change since IPO67.94%

Recent News & Updates

May 28
These 4 Measures Indicate That Olympic Steel (NASDAQ:ZEUS) Is Using Debt Reasonably Well

These 4 Measures Indicate That Olympic Steel (NASDAQ:ZEUS) Is Using Debt Reasonably Well

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ZEUSUS Metals and MiningUS Market
7D-3.2%-4.6%-2.2%
1Y-12.4%-13.5%-21.2%

Return vs Industry: ZEUS exceeded the US Metals and Mining industry which returned -13.5% over the past year.

Return vs Market: ZEUS exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is ZEUS's price volatile compared to industry and market?
ZEUS volatility
ZEUS Average Weekly Movement9.2%
Metals and Mining Industry Average Movement10.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: ZEUS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ZEUS's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19541,648Rick Marabitohttps://www.olysteel.com

Olympic Steel, Inc. processes, distributes, and storage metal products in the United States and internationally. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products. The Carbon Flat Products segment sells and distributes processed carbon and coated flat-rolled sheets, coil and plate products, and fabricated parts.

Olympic Steel Fundamentals Summary

How do Olympic Steel's earnings and revenue compare to its market cap?
ZEUS fundamental statistics
Market CapUS$289.65m
Earnings (TTM)US$136.35m
Revenue (TTM)US$2.55b

2.1x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZEUS income statement (TTM)
RevenueUS$2.55b
Cost of RevenueUS$2.00b
Gross ProfitUS$542.97m
Other ExpensesUS$406.62m
EarningsUS$136.35m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.25
Gross Margin21.33%
Net Profit Margin5.36%
Debt/Equity Ratio67.3%

How did ZEUS perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

1%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ZEUS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZEUS?

Other financial metrics that can be useful for relative valuation.

ZEUS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA2.9x
PEG Ratio-0.08x

Price to Earnings Ratio vs Peers

How does ZEUS's PE Ratio compare to its peers?

ZEUS PE Ratio vs Peers
The above table shows the PE ratio for ZEUS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.3x
HUDI Huadi International Group
110.1xn/aUS$278.8m
MSB Mesabi Trust
4.4xn/aUS$328.1m
METC Ramaco Resources
7.4x-25.5%US$567.1m
WEBC Webco Industries
3.2xn/aUS$172.8m
ZEUS Olympic Steel
2.1x-25.0%US$289.7m

Price-To-Earnings vs Peers: ZEUS is good value based on its Price-To-Earnings Ratio (2.1x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does ZEUS's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: ZEUS is good value based on its Price-To-Earnings Ratio (2.1x) compared to the US Metals and Mining industry average (8.2x)


Price to Earnings Ratio vs Fair Ratio

What is ZEUS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZEUS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.1x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: ZEUS is good value based on its Price-To-Earnings Ratio (2.1x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).


Share Price vs Fair Value

What is the Fair Price of ZEUS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZEUS ($26.03) is trading above our estimate of fair value ($6.89)

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


Price to Earnings Growth Ratio

PEG Ratio: ZEUS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-25.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEUS's earnings are forecast to decline over the next 3 years (-25% per year).

Earnings vs Market: ZEUS's earnings are forecast to decline over the next 3 years (-25% per year).

High Growth Earnings: ZEUS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ZEUS's revenue is expected to decline over the next 3 years (-10.9% per year).

High Growth Revenue: ZEUS's revenue is forecast to decline over the next 3 years (-10.9% 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


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Past Performance

How has Olympic Steel performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


43.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZEUS has a high level of non-cash earnings.

Growing Profit Margin: ZEUS's current net profit margins (5.4%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: ZEUS's earnings have grown significantly by 43.4% per year over the past 5 years.

Accelerating Growth: ZEUS's earnings growth over the past year (761.9%) exceeds its 5-year average (43.4% per year).

Earnings vs Industry: ZEUS earnings growth over the past year (761.9%) exceeded the Metals and Mining industry 61.3%.


Return on Equity

High ROE: ZEUS's Return on Equity (29.5%) is considered high.


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Financial Health

How is Olympic Steel's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZEUS's short term assets ($814.6M) exceed its short term liabilities ($220.0M).

Long Term Liabilities: ZEUS's short term assets ($814.6M) exceed its long term liabilities ($360.9M).


Debt to Equity History and Analysis

Debt Level: ZEUS's net debt to equity ratio (65.6%) is considered high.

Reducing Debt: ZEUS's debt to equity ratio has reduced from 74.5% to 67.3% over the past 5 years.

Debt Coverage: ZEUS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ZEUS's interest payments on its debt are well covered by EBIT (24.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ZEUS's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: ZEUS's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: ZEUS's dividends per share have been stable in the past 10 years.

Growing Dividend: ZEUS's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (1.3%), ZEUS's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ZEUS is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Rick Marabito (58 yo)

3.5yrs

Tenure

US$3,620,093

Compensation

Mr. Richard T. Marabito, also known as Rick, has been an Independent Director at CBIZ, Inc. since August 12, 2021. He is the Director and Chief Executive Officer of Olympic Steel, Inc. since January 1, 201...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD3.62M) is above average for companies of similar size in the US market ($USD1.83M).

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


Leadership Team

Experienced Management: ZEUS's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: ZEUS's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ZEUS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Olympic Steel, Inc.
  • Ticker: ZEUS
  • Exchange: NasdaqGS
  • Founded: 1954
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: US$289.653m
  • Shares outstanding: 11.13m
  • Website: https://www.olysteel.com

Number of Employees


Location

  • Olympic Steel, Inc.
  • 22901 Millcreek Boulevard
  • Suite 650, Highland Hills
  • Bedford Heights
  • Ohio
  • 44122
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.