OLYMPIC STEEL INC (ZEUS) May 2024 Earnings Report

Olympic Steel, Inc.: Investment Report

Overview

Olympic Steel, Inc. is a leading metal processing and distribution company operating in the United States, Canada, and Mexico. With a market capitalization of approximately $580 million, the company is a significant player in the basic materials sector. In this report, we will delve into the company's financial performance, growth prospects, and recent news to provide a comprehensive overview of the investment opportunity.

Core Metrics

  • Current Price: $52.14 USD
  • 52-week High: $73.49
  • 52-week Low: $42.8
  • Market Cap: $580.45 million USD
  • P/E Ratio: 13.904
  • Earnings per Share (EPS): $3.75
  • 50-day average: $62.45
  • 200-day average: $59.41
  • Analyst Recommendations: Buy (1 analyst)

Financial Performance

Olympic Steel, Inc. has reported a revenue growth rate of -0.081, indicating a slight decline in revenue. However, the company's gross margins remain strong at 0.22358999, and EBITDA margins are at 0.05065. The company's free cash flow stands at $84.92 million, and total cash on hand is $10.34 million. Operating cash flow is $120.11 million, and EBITDA is $106.96 million.

Growth Prospects

The company's growth prospects are tied to the demand for metal products in the automotive, construction, and manufacturing industries. As the global economy continues to recover from the pandemic, Olympic Steel, Inc. is well-positioned to benefit from increased demand for its products.

News and Updates

Recent news articles have highlighted the company's products in various contexts, including a humorous article about Zeus-themed Father's Day cards and a story about a dog named Zeus chasing a bear away from its owner. While these articles may not be directly related to the company's operations, they demonstrate the ubiquity of the Zeus brand name.

Upgrades and Downgrades

In 2017, Keybanc downgraded Olympic Steel, Inc. from Overweight to Sector Weight, and Macquarie upgraded the company from Neutral to Outperform in the same year. In 2016, Keybanc upgraded the company from Underweight to Sector Weight, and Jefferies maintained a Hold rating.

Summary

Olympic Steel, Inc. presents a compelling investment opportunity in the basic materials sector. With a strong balance sheet, solid financial performance, and growth prospects tied to the recovering global economy, the company is well-positioned for long-term growth. Analysts have a Buy rating on the stock, indicating a positive outlook for the company's future performance.

Disclosures

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