OLYMPIC STEEL INC (ZEUS) Stock Fundamental Analysis
NASDAQ:ZEUS - Nasdaq - US68162K1060 - Common Stock - Currency: USD
Taking everything into account, ZEUS scores 5 out of 10 in our fundamental rating. ZEUS was compared to 154 industry peers in the Metals & Mining industry. ZEUS has an average financial health and profitability rating. ZEUS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZEUS was profitable.
ZEUS had a positive operating cash flow in the past year.
Of the past 5 years ZEUS 4 years were profitable.
ZEUS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.58%, ZEUS is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
ZEUS has a Return On Equity of 2.92%. This is in the better half of the industry: ZEUS outperforms 62.99% of its industry peers.
The Return On Invested Capital of ZEUS (3.76%) is better than 60.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZEUS is in line with the industry average of 8.61%.
The 3 year average ROIC (8.59%) for ZEUS is well above the current ROIC(3.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 2.92% | ||
| ROIC | 3.76% |
ROA(3y)5.64%
ROA(5y)5.57%
ROE(3y)9.88%
ROE(5y)11.26%
ROIC(3y)8.59%
ROIC(5y)8.78%
1.3 Margins
ZEUS has a Profit Margin (0.88%) which is comparable to the rest of the industry.
ZEUS's Profit Margin has improved in the last couple of years.
ZEUS has a Operating Margin (2.37%) which is in line with its industry peers.
ZEUS's Operating Margin has improved in the last couple of years.
ZEUS's Gross Margin of 17.05% is in line compared to the rest of the industry. ZEUS outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of ZEUS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.37% | ||
| PM (TTM) | 0.88% | ||
| GM | 17.05% |
OM growth 3Y-31.35%
OM growth 5Y21.37%
PM growth 3Y-39.09%
PM growth 5Y36.8%
GM growth 3Y-3.07%
GM growth 5Y5.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZEUS is destroying value.
ZEUS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ZEUS has been increased compared to 5 years ago.
The debt/assets ratio for ZEUS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.42 indicates that ZEUS is not in any danger for bankruptcy at the moment.
ZEUS's Altman-Z score of 3.42 is fine compared to the rest of the industry. ZEUS outperforms 62.99% of its industry peers.
ZEUS has a debt to FCF ratio of 4.55. This is a neutral value as ZEUS would need 4.55 years to pay back of all of its debts.
The Debt to FCF ratio of ZEUS (4.55) is better than 68.83% of its industry peers.
ZEUS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
ZEUS has a worse Debt to Equity ratio (0.41) than 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.39
WACC9.54%
2.3 Liquidity
ZEUS has a Current Ratio of 3.16. This indicates that ZEUS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.16, ZEUS is doing good in the industry, outperforming 66.88% of the companies in the same industry.
ZEUS has a Quick Ratio of 1.25. This is a normal value and indicates that ZEUS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, ZEUS perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for ZEUS have decreased strongly by -59.14% in the last year.
The Earnings Per Share has been growing by 42.95% on average over the past years. This is a very strong growth
Looking at the last year, ZEUS shows a decrease in Revenue. The Revenue has decreased by -9.65% in the last year.
Measured over the past years, ZEUS shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
EPS 1Y (TTM)-59.14%
EPS 3Y-42.37%
EPS 5Y42.95%
EPS Q2Q%-72%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-5.66%
Revenue growth 5Y4.22%
Sales Q2Q%-6.4%
3.2 Future
Based on estimates for the next years, ZEUS will show a very strong growth in Earnings Per Share. The EPS will grow by 24.22% on average per year.
ZEUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y10.97%
EPS Next 2Y24.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.6%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.55, the valuation of ZEUS can be described as rather expensive.
68.18% of the companies in the same industry are more expensive than ZEUS, based on the Price/Earnings ratio.
ZEUS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.85, which is the current average of the S&P500 Index.
ZEUS is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
Based on the Price/Forward Earnings ratio, ZEUS is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
ZEUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZEUS indicates a somewhat cheap valuation: ZEUS is cheaper than 74.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ZEUS is valued cheaper than 94.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ZEUS may justify a higher PE ratio.
ZEUS's earnings are expected to grow with 24.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)0.53
EPS Next 2Y24.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ZEUS has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, ZEUS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ZEUS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of ZEUS grows each year by 48.96%, which is quite nice.
ZEUS has been paying a dividend for at least 10 years, so it has a reliable track record.
ZEUS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)48.96%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
ZEUS pays out 40.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ZEUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.47%
EPS Next 2Y24.22%
EPS Next 3YN/A
NASDAQ:ZEUS (5/14/2025, 8:10:27 PM)
32.25
-0.87 (-2.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.77%
Inst Owner Change0.7%
Ins Owners11.87%
Ins Owner Change3.11%
Market Cap359.91M
Analysts85
Price Target45.14 (39.97%)
Short Float %2.86%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend0.6
Dividend Growth(5Y)48.96%
DP40.47%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)133.04%
Min EPS beat(2)31.41%
Max EPS beat(2)234.67%
EPS beat(4)3
Avg EPS beat(4)64.49%
Min EPS beat(4)-26.47%
Max EPS beat(4)234.67%
EPS beat(8)6
Avg EPS beat(8)46.19%
EPS beat(12)10
Avg EPS beat(12)39.18%
EPS beat(16)14
Avg EPS beat(16)36.94%
Revenue beat(2)1
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-8.68%
Max Revenue beat(2)3.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.15%
Min Revenue beat(4)-8.68%
Max Revenue beat(4)3.15%
Revenue beat(8)1
Avg Revenue beat(8)-6%
Revenue beat(12)2
Avg Revenue beat(12)-5.19%
Revenue beat(16)6
Avg Revenue beat(16)-1.53%
PT rev (1m)-2.21%
PT rev (3m)-7.33%
EPS NQ rev (1m)-24.69%
EPS NQ rev (3m)-26.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.45%
Revenue NQ rev (1m)-2.68%
Revenue NQ rev (3m)-5.12%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 10.61 | ||
| P/S | 0.19 | ||
| P/FCF | 6.89 | ||
| P/OCF | 4.2 | ||
| P/B | 0.63 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)1.43
EY4.43%
EPS(NY)3.04
Fwd EY9.43%
FCF(TTM)4.68
FCFY14.51%
OCF(TTM)7.68
OCFY23.81%
SpS170.97
BVpS51.45
TBVpS33.5
PEG (NY)2.05
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 2.92% | ||
| ROCE | 5.16% | ||
| ROIC | 3.76% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.97% | ||
| OM | 2.37% | ||
| PM (TTM) | 0.88% | ||
| GM | 17.05% | ||
| FCFM | 2.74% |
ROA(3y)5.64%
ROA(5y)5.57%
ROE(3y)9.88%
ROE(5y)11.26%
ROIC(3y)8.59%
ROIC(5y)8.78%
ROICexc(3y)8.73%
ROICexc(5y)8.91%
ROICexgc(3y)10.05%
ROICexgc(5y)9.92%
ROCE(3y)11.79%
ROCE(5y)12.05%
ROICexcg growth 3Y-33.8%
ROICexcg growth 5Y18.8%
ROICexc growth 3Y-38%
ROICexc growth 5Y14.33%
OM growth 3Y-31.35%
OM growth 5Y21.37%
PM growth 3Y-39.09%
PM growth 5Y36.8%
GM growth 3Y-3.07%
GM growth 5Y5.99%
F-Score4
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 105.01% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 111.14% | ||
| Profit Quality | 310.89% | ||
| Current Ratio | 3.16 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.42 |
F-Score4
WACC9.54%
ROIC/WACC0.39
Cap/Depr(3y)90.79%
Cap/Depr(5y)74.75%
Cap/Sales(3y)1.09%
Cap/Sales(5y)0.91%
Profit Quality(3y)182.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.14%
EPS 3Y-42.37%
EPS 5Y42.95%
EPS Q2Q%-72%
EPS Next Y10.97%
EPS Next 2Y24.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-5.66%
Revenue growth 5Y4.22%
Sales Q2Q%-6.4%
Revenue Next Year-0.6%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-46.54%
EBIT growth 3Y-35.23%
EBIT growth 5Y26.49%
EBIT Next Year97.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-73.66%
FCF growth 3YN/A
FCF growth 5Y-48.82%
OCF growth 1Y-61.64%
OCF growth 3YN/A
OCF growth 5Y-23.63%