Home Sectors Basic Materials Present Valuation: Olympic Steel (NASDAQ: ZEUS)

Present Valuation: Olympic Steel (NASDAQ: ZEUS)


Olympic Steel is part of the basic materials sector and steel industry. The company CEO is Richard T. Marabito. Olympic Steel Inc is a metal services center in U.S. The company is engaged in the processing and distribution of carbon, coated, aluminum and stainless steel, flat-rolled coil, sheet and plate products and tubular and pipe products to various industries.

Previous Intraday Trading Performance:

The ZEUS stock showed a previous change of 2.02% with an open at 12.99 and a close of 13.14. It reached an intraday high of 13.38 and a low of 12.76.

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The stock has a market cap of $144.6m with 11.0m shares outstanding, of which the float is 9.1m shares. Trading volume reached 52,162 shares compared to its average volume of 81,970 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Olympic Steel shares returned 1.23% and in the past 30 trading days it returned -18.46%. Over three months, it changed -23.93%. In one year it has changed -43.20% and within that year its 52-week high was 24.23 and its 52-week low was 12.09. ZEUS stock is 8.68% above its 52 Week Low.

Our calculations show a 200 day moving average of 17.72 and a 50 day moving average of 15.19. Currently ZEUS stock is trading -25.86% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 2.95 that ended on 31st of December 2018, which according to the previous close, that is a PE of 4.45. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.32. The TTM EPS is 3.52, which comes to a TTM PE of 3.73.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/02/2019): 0.18
4thQtr of 2018 (Reported on 02/15/2019): -0.11
3rdQtr of 2018 (Reported on 11/08/2018): 1.01
2ndQtr of 2018 (Reported on 08/02/2018): 1.39
1stQtr of 2018 (Reported on 05/03/2018): 0.67

The dividend per share is currently 0.08, which is a dividend yield of 0.61%. Also, the payout ratio is 2.27%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 13.29, which means it is possibly undervalued and has a margin of safety of 1.14%.

Indicators to Watch:

The current calculated beta is 2.16.

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 9.98%, return on assets is 3.95%, profit margin is 1.58%, price-to-sales is 0.08 and price-to-book is 0.46.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 0  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.