Olympic Steel, Inc. (ZEUS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mueller Industries, Inc.

Insteel Industries, Inc.

Valmont Industries, Inc.

RBC Bearings, Inc.

CompX International, Inc.

Gibraltar Industries, Inc.

Xometry, Inc.

Olympic Steel, Inc.

Park-Ohio Holdings Corp.

NL Industries, Inc.

Fathom Digital Manufacturing Corp.

Why is Olympic Steel, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.31

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 7.61 MM has Grown at -53.35%
ROCE(HY) Lowest at 2.5%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.87 times

With ROCE of 4.94%, it has a expensive valuation with a 0.72 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.62%, its profits have fallen by -60.9%

High Institutional Holdings at 98.32%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.62% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Olympic Steel, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Olympic Steel, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Olympic Steel, Inc.

-2.75%

-0.44

47.27%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.53%

EBIT Growth (5y)

105.69%

EBIT to Interest (avg)

10.31

Debt to EBITDA (avg)

2.50

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

2.67

Tax Ratio

26.95%

Dividend Payout Ratio

30.49%

Pledged Shares

Institutional Holding

98.32%

ROCE (avg)

11.60%

ROE (avg)

11.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.61

EV to EBIT

14.66

EV to EBITDA

8.22

EV to Capital Employed

0.72

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

4.94%

ROE (Latest)

2.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 35.94%

DIVIDEND PER SHARE(HY)

Highest at USD 8.94

RAW MATERIAL COST(Y)

Fallen by -7.41% (YoY

-11What is not working for the Company

NET PROFIT(HY)

At USD 7.61 MM has Grown at -53.35%

ROCE(HY)

Lowest at 2.5%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.87 times

Here's what is working for Olympic Steel, Inc.

Dividend per share

Highest at USD 8.94 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 35.94% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Olympic Steel, Inc.

Net Profit

At USD 7.61 MM has Grown at -53.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 3.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio