Olympic Steel Stock Analysis, Valuation (NASDAQ:ZEUS)
View the Olympic Steel stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for ZEUS stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Olympic Steel, Inc. Stock Rating 2.9/5
Amigobulls ZEUS stock analysis takes into account various financial ratios like relative valuation, Olympic Steel revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Olympic Steel dividend performance. Olympic Steel valuation forms a crucial part of our stock analysis. Olympic Steel stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy ZEUS stock?
- The Year Over Year (YoY) revenue growth for Olympic Steel was 27.2% in 2018-06.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 2.4.
- The Olympic Steel stock currently trades at a price to earnings ratio of 8.9, compared to the sector average of 17.4. We rate this as a positive.
- When compared with the Basic Materials sector average PS ratio of 1.3, the price-to-sales ratio of 0.2 for ZEUS stock is attractive.
- Olympic Steel's return on invested capital of 7.4 is good.
Should you sell ZEUS stock?
- Olympic Steel's TTM operating margin of 2.72 was rather poor.
- Olympic Steel posted a TTM Net margin of 2%.
- With a debt/equity ratio of 1, Olympic Steel is highly leveraged in comparison to Basic Materials peers.
- The company's operations consume more cash than it generates. This is not a healthy sign.
- The company has a negative free cash flow margin of -5.4.
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Amigobulls Olympic Steel stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ZEUS stock. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, Olympic Steel revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Olympic Steel stock.