OLYMPIC STEEL INC (ZEUS) Aug 2024 Earnings Report
Olympic Steel, Inc. (ZEUS): Investment Report
Overview
Olympic Steel, Inc. is a leading processor, distributor, and storage provider of metal products in the United States, Canada, and Mexico. With a market capitalization of approximately $499 million, the company operates in three segments: Carbon Flat Products, Specialty Metals Flat Products, and Tubular and Pipe Products. As a key player in the steel industry, Olympic Steel's performance is closely tied to the overall health of the economy and the demand for steel products. This report provides an in-depth analysis of the company's financial performance, growth prospects, and industry trends, as well as a summary of recent news and analyst recommendations.
Core Metrics
- Current Price: $44.84 USD
- 52-week High: $73.49 USD
- 52-week Low: $40.39 USD
- Market Cap: $499 million USD
- P/E Ratio: 14.46
- Earnings per Share (EPS): $3.1
- 50-day Average: $47.53
- 200-day Average: $58.38
- Analyst Recommendations: Buy (1 analyst)
Financial Performance
Olympic Steel, Inc. has reported mixed financial performance in recent years. In its latest quarterly earnings report, the company reported a revenue growth rate of -0.076, indicating a slight decline in sales. However, the company's gross margins and EBITDA margins have remained relatively stable, with gross margins at 22.45% and EBITDA margins at 4.69%. The company's operating cash flow has also improved, with an operating cash flow of $90.45 million and a free cash flow of $63.57 million.
Growth Prospects
Despite the challenges facing the steel industry, Olympic Steel, Inc. has several growth prospects. The company's diversification into specialty metals and tubular products has helped to offset the decline in demand for carbon flat products. Additionally, the company's focus on value-added services, such as cutting-to-length and slitting, has helped to increase its revenue and profit margins. However, the company's growth prospects are closely tied to the overall health of the economy and the demand for steel products.
News and Updates
Recent news articles have highlighted the passing of a police K-9 officer named Zeus, the discovery of an ancient marble head of Zeus in Türkiye, and the announcement of the final season of the Netflix series "Blood of Zeus." While these articles are unrelated to Olympic Steel, Inc., they demonstrate the widespread use of the Zeus brand name and the cultural significance of the Greek god.
Upgrades and Downgrades
In recent years, Olympic Steel, Inc. has received several upgrades and downgrades from analysts. In 2017, Keybanc downgraded the company from Overweight to Sector Weight, while Macquarie upgraded the company from Neutral to Outperform. In 2016, Jefferies initiated coverage of the company with a Hold rating, while Keybanc upgraded the company from Sector Weight to Overweight. These upgrades and downgrades reflect the changing sentiment of analysts towards the company's financial performance and growth prospects.
Summary
In summary, Olympic Steel, Inc. is a leading processor, distributor, and storage provider of metal products in the United States, Canada, and Mexico. While the company has reported mixed financial performance in recent years, it has several growth prospects, including its diversification into specialty metals and tubular products and its focus on value-added services. With a market capitalization of approximately $499 million, the company is well-positioned to benefit from an improving economy and increasing demand for steel products. Based on its financial performance, growth prospects, and analyst recommendations, we maintain a Buy rating on Olympic Steel, Inc.
Disclosures
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