OLYMPIC STEEL INC (ZEUS) Stock Fundamental Analysis
NASDAQ:ZEUS - US68162K1060 - Common Stock
33.56 USD
+1.77 (+5.57%)
33.56 USD
0 (0%)
Taking everything into account, ZEUS scores 5 out of 10 in our fundamental rating. ZEUS was compared to 156 industry peers in the Metals & Mining industry. ZEUS has only an average score on both its financial health and profitability. ZEUS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ZEUS was profitable.
In the past year ZEUS had a positive cash flow from operations.
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
ZEUS has a Return On Assets of 1.34%. This is in the better half of the industry: ZEUS outperforms 60.90% of its industry peers.
ZEUS has a Return On Equity of 2.49%. This is in the better half of the industry: ZEUS outperforms 62.82% of its industry peers.
The Return On Invested Capital of ZEUS (4.18%) is better than 60.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZEUS is below the industry average of 12.76%.
The 3 year average ROIC (8.59%) for ZEUS is well above the current ROIC(4.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 2.49% | ||
| ROIC | 4.18% |
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 (0.77%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ZEUS has grown nicely.
ZEUS has a Operating Margin (2.69%) which is in line with its industry peers.
ZEUS's Operating Margin has improved in the last couple of years.
The Gross Margin of ZEUS (17.75%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ZEUS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.69% | ||
| PM (TTM) | 0.77% | ||
| GM | 17.75% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZEUS is destroying value.
The number of shares outstanding for ZEUS remains at a similar level compared to 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 3.38 indicates that ZEUS is not in any danger for bankruptcy at the moment.
ZEUS has a Altman-Z score of 3.38. This is in the better half of the industry: ZEUS outperforms 60.26% of its industry peers.
The Debt to FCF ratio of ZEUS is 3.35, which is a good value as it means it would take ZEUS, 3.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.35, ZEUS is doing good in the industry, outperforming 74.36% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that ZEUS is not too dependend on debt financing.
ZEUS's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. ZEUS is outperformed by 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.43
WACC9.7%
2.3 Liquidity
ZEUS has a Current Ratio of 3.07. This indicates that ZEUS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.07, ZEUS is doing good in the industry, outperforming 62.18% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that ZEUS should not have too much problems paying its short term obligations.
ZEUS has a worse Quick ratio (1.18) than 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for ZEUS have decreased strongly by -57.34% in the last year.
Measured over the past years, ZEUS shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.95% on average per year.
Looking at the last year, ZEUS shows a decrease in Revenue. The Revenue has decreased by -9.21% 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)-57.34%
EPS 3Y-42.37%
EPS 5Y42.95%
EPS Q2Q%-31.82%
Revenue 1Y (TTM)-9.21%
Revenue growth 3Y-5.66%
Revenue growth 5Y4.22%
Sales Q2Q%-5.66%
3.2 Future
ZEUS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.84% yearly.
Based on estimates for the next years, ZEUS will show a decrease in Revenue. The Revenue will decrease by -0.17% on average per year.
EPS Next Y-49.26%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.03%
Revenue Next 2Y-0.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ZEUS is valuated quite expensively with a Price/Earnings ratio of 27.51.
Based on the Price/Earnings ratio, ZEUS is valued a bit cheaper than 67.95% of the companies in the same industry.
ZEUS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 14.12 indicates a correct valuation of ZEUS.
ZEUS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZEUS is cheaper than 66.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. ZEUS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than ZEUS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ZEUS is valued cheaper than 97.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.34 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
ZEUS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y9.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ZEUS has a Yearly Dividend Yield of 1.96%.
ZEUS's Dividend Yield is rather good when compared to the industry average which is at 2.57. ZEUS pays more dividend than 82.69% of the companies in the same industry.
ZEUS's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of ZEUS is nicely growing with an annual growth rate of 48.96%!
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 48.13% 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.
DP48.13%
EPS Next 2Y9.84%
EPS Next 3YN/A
33.56
+1.77 (+5.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.74%
Inst Owner Change3.17%
Ins Owners12.01%
Ins Owner Change0.74%
Market Cap375.87M
Analysts85
Price Target39.78 (18.53%)
Short Float %2.99%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.6
Dividend Growth(5Y)48.96%
DP48.13%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.85%
Min EPS beat(2)10.29%
Max EPS beat(2)31.41%
EPS beat(4)3
Avg EPS beat(4)62.48%
Min EPS beat(4)-26.47%
Max EPS beat(4)234.67%
EPS beat(8)6
Avg EPS beat(8)46.92%
EPS beat(12)10
Avg EPS beat(12)38.59%
EPS beat(16)14
Avg EPS beat(16)35.63%
Revenue beat(2)1
Avg Revenue beat(2)1.13%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)3.15%
Revenue beat(4)1
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-8.68%
Max Revenue beat(4)3.15%
Revenue beat(8)1
Avg Revenue beat(8)-4.58%
Revenue beat(12)1
Avg Revenue beat(12)-5.79%
Revenue beat(16)5
Avg Revenue beat(16)-2.04%
PT rev (1m)-2.5%
PT rev (3m)-11.86%
EPS NQ rev (1m)-54.44%
EPS NQ rev (3m)-72.3%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-35.24%
Revenue NQ rev (1m)-3.1%
Revenue NQ rev (3m)-6.7%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 14.12 | ||
| P/S | 0.2 | ||
| P/FCF | 5.34 | ||
| P/OCF | 3.61 | ||
| P/B | 0.65 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)1.22
EY3.64%
EPS(NY)2.38
Fwd EY7.08%
FCF(TTM)6.28
FCFY18.72%
OCF(TTM)9.3
OCFY27.7%
SpS167.7
BVpS51.63
TBVpS33.87
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 2.49% | ||
| ROCE | 5.73% | ||
| ROIC | 4.18% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 5.51% | ||
| OM | 2.69% | ||
| PM (TTM) | 0.77% | ||
| GM | 17.75% | ||
| FCFM | 3.75% |
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 Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 102.74% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 124.93% | ||
| Profit Quality | 489.62% | ||
| Current Ratio | 3.07 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.38 |
F-Score4
WACC9.7%
ROIC/WACC0.43
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)-57.34%
EPS 3Y-42.37%
EPS 5Y42.95%
EPS Q2Q%-31.82%
EPS Next Y-49.26%
EPS Next 2Y9.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.21%
Revenue growth 3Y-5.66%
Revenue growth 5Y4.22%
Sales Q2Q%-5.66%
Revenue Next Year-3.03%
Revenue Next 2Y-0.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.79%
EBIT growth 3Y-35.23%
EBIT growth 5Y26.49%
EBIT Next Year57.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-63.43%
FCF growth 3YN/A
FCF growth 5Y-48.82%
OCF growth 1Y-52.11%
OCF growth 3YN/A
OCF growth 5Y-23.63%