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 $470.45 million, the company operates in three segments: Carbon Flat Products, Specialty Metals Flat Products, and Tubular and Pipe Products. As a dominant player in the steel industry, Olympic Steel has established a strong presence in the market, making it an attractive investment opportunity. This report provides an in-depth analysis of the company's financial performance, growth prospects, and recent news, helping investors make informed decisions.

Core Metrics

• Current price: $42.26 USD
• 52-week high: $73.49 USD
• 52-week low: $40.39 USD
• Market Cap: $470.459424 billion USD
• P/E Ratio: 13.632258
• Earnings per Share: $3.1
• 50-day average: $47.2908
• 200-day average: $58.32675
• Analyst Recommendations: Buy (1 analyst)

Financial Performance

Olympic Steel has demonstrated a stable financial performance over the years. The company's revenue growth rate has been consistent, with a slight decline in the recent period due to market conditions. The gross margin and EBITDA margin have also remained steady, indicating the company's ability to maintain its profitability. The cash flow from operations is strong, with a total cash balance of $9.44 million and a free cash flow of $63.57 million.

Growth Prospects

The steel industry is expected to experience growth in the coming years, driven by increasing demand from the automotive, construction, and infrastructure sectors. Olympic Steel is well-positioned to benefit from this growth, with its diversified product portfolio and extensive distribution network. The company's focus on value-added services, such as cutting-to-length, slitting, and finishing, is also expected to drive growth.

News and Updates

Recent news articles have highlighted the company's presence in the steel industry, with no significant impact on the stock price. However, the passing of the K-9 officer Zeus, a valued member of the Apex Police Department, was reported in the news.

Upgrades and Downgrades

In 2017, Macquarie upgraded Olympic Steel to Outperform from Neutral, citing the company's strong financial performance and growth prospects. In the same year, Keybanc downgraded the stock to Sector Weight from Overweight, citing concerns over the industry's outlook.

Summary

Olympic Steel, Inc. is a solid investment opportunity in the steel industry, with a strong financial performance, diversified product portfolio, and growth prospects. The company's ability to maintain its profitability and cash flow from operations is a testament to its resilience in a competitive market. With a Buy recommendation from one analyst and a stable financial performance, Olympic Steel is an attractive investment option for investors seeking exposure to the steel industry.

Disclosures

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