Olympic Steel processes and distributes metal products in the United States, Canada, Puerto Rico, Mexico, and internationally. It operates in two segments, Flat Products, and Tubular and Pipe Products. The company was founded in 1954 and is based in Bedford Heights, Ohio.
ZEUS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Olympic Steel Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Olympic Steel Inc ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 282.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Olympic Steel Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 0.01; that's higher than just 23.55% of US stocks in the Basic Materials sector that have positive free cash flow.
38% of the company's capital comes from equity, which is greater than merely 18.22% of stocks in our cash flow based forecasting set.
Olympic Steel Inc's effective tax rate, as measured by taxes paid relative to net income, is at 105 -- greater than 97.4% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LEU, MDU, VMC, WOR, and TG can be thought of as valuation peers to ZEUS, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Olympic Steel, Inc. (ZEUS) Q2 2020 Earnings Conference Call August 06, 2020 10:00 AM ET Company Participants Rich Manson - Chief Financial Officer Rick Marabito - Chief Executive Officer Andrew Greiff - President and Chief Operating Officer Conference Call Participants Chris Sakai - Singular Research Presentation Operator Good morning, and...
CLEVELAND--(BUSINESS WIRE)--Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced the opening of its newest 120,000-square-foot metal processing facility, located in Buford, Georgia. The location expands the Company’s southeastern region footprint, which also includes facilities in Locust, North Carolina; Winder, Georgia; and Hanceville, Alabama. The Buford facility will act as the region’s primary flat rolled fabrication hub, with first-stage metal proces
CLEVELAND--(BUSINESS WIRE)--Olympic Steel, Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced financial results for the three months ended March 31, 2020. Net income for the first quarter totaled $0.6 million, or $0.05 per diluted share, compared to $2.1 million, or $0.18 per diluted share, in the first quarter of 2019. Sales for the first quarter of 2020 totaled $354 million, compared with $446 million in the first quarter of 2019. The results include $0.5 million o