OLYMPIC STEEL INC (ZEUS) Stock Fundamental Analysis
NASDAQ:ZEUS - Nasdaq - US68162K1060 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ZEUS. ZEUS was compared to 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of ZEUS get a neutral evaluation. Nothing too spectacular is happening here. 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.
ZEUS had positive earnings in 4 of the past 5 years.
ZEUS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ZEUS has a Return On Assets of 1.58%. This is in the better half of the industry: ZEUS outperforms 64.29% of its industry peers.
ZEUS has a better Return On Equity (2.92%) than 65.58% of its industry peers.
With a decent Return On Invested Capital value of 3.76%, ZEUS is doing good in the industry, outperforming 61.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZEUS is below the industry average of 11.67%.
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
With a decent Profit Margin value of 0.88%, ZEUS is doing good in the industry, outperforming 61.69% of the companies in the same industry.
ZEUS's Profit Margin has improved in the last couple of years.
ZEUS's Operating Margin of 2.37% is in line compared to the rest of the industry. ZEUS outperforms 50.65% of its industry peers.
ZEUS's Operating Margin has improved in the last couple of years.
The Gross Margin of ZEUS (17.05%) is comparable to the rest of the industry.
ZEUS's Gross Margin has improved in the last couple of years.
| 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
ZEUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ZEUS has about the same amount of shares outstanding.
The number of shares outstanding for ZEUS has been increased compared to 5 years ago.
Compared to 1 year ago, ZEUS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.44 indicates that ZEUS is not in any danger for bankruptcy at the moment.
ZEUS has a Altman-Z score of 3.44. This is in the better half of the industry: ZEUS outperforms 62.99% of its industry peers.
The Debt to FCF ratio of ZEUS is 4.55, which is a neutral value as it means it would take ZEUS, 4.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZEUS (4.55) is better than 70.78% 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's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. ZEUS is outperformed by 70.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.4
WACC9.45%
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.
ZEUS has a better Current ratio (3.16) than 67.53% of its industry peers.
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.
ZEUS has a Quick ratio (1.25) which is in line with its industry peers.
| 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
The Revenue has decreased by -9.65% in the past 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 quite strong growth in Earnings Per Share. The EPS will grow by 15.50% on average per year.
Based on estimates for the next years, ZEUS will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-32.69%
EPS Next 2Y15.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.94%
Revenue Next 2Y2.26%
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.
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
A Price/Earnings ratio of 24.00 indicates a rather expensive valuation of ZEUS.
Based on the Price/Earnings ratio, ZEUS is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. ZEUS is around the same levels.
With a Price/Forward Earnings ratio of 13.06, ZEUS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZEUS indicates a somewhat cheap valuation: ZEUS is cheaper than 66.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ZEUS to the average of the S&P500 Index (35.19), we can say ZEUS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
80.52% of the companies in the same industry are more expensive than ZEUS, based on the Enterprise Value to EBITDA ratio.
ZEUS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZEUS is cheaper than 94.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The decent profitability rating of ZEUS may justify a higher PE ratio.
ZEUS's earnings are expected to grow with 15.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y15.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, ZEUS has a reasonable but not impressive dividend return.
ZEUS's Dividend Yield is a higher than the industry average which is at 2.90.
ZEUS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 40.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
ZEUS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.47%
EPS Next 2Y15.5%
EPS Next 3YN/A
NASDAQ:ZEUS (7/14/2025, 2:57:03 PM)
34.325
-0.33 (-0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.52%
Inst Owner Change0%
Ins Owners12.01%
Ins Owner Change1.8%
Market Cap383.07M
Analysts85
Price Target42.08 (22.59%)
Short Float %3.2%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)0%
PT rev (3m)-8.84%
EPS NQ rev (1m)-23.08%
EPS NQ rev (3m)-50.62%
EPS NY rev (1m)-14.1%
EPS NY rev (3m)-39.35%
Revenue NQ rev (1m)-2.27%
Revenue NQ rev (3m)-7.44%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 13.06 | ||
| P/S | 0.2 | ||
| P/FCF | 7.34 | ||
| P/OCF | 4.47 | ||
| P/B | 0.67 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)1.43
EY4.17%
EPS(NY)2.63
Fwd EY7.66%
FCF(TTM)4.68
FCFY13.63%
OCF(TTM)7.68
OCFY22.37%
SpS170.97
BVpS51.45
TBVpS33.5
PEG (NY)N/A
PEG (5Y)0.56
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 | 3.44 |
F-Score4
WACC9.45%
ROIC/WACC0.4
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 Y-32.69%
EPS Next 2Y15.5%
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-1.94%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-46.54%
EBIT growth 3Y-35.23%
EBIT growth 5Y26.49%
EBIT Next Year69.69%
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%