Olympic Steel Reports 19.7% Decrease in Revenue for Q2 FY2023
August 12, 2023
🌥️Earnings Overview
For the second quarter of fiscal year 2023, OLYMPIC STEEL ($NASDAQ:ZEUS) reported total revenue of USD 569.3 million, a 19.7% decrease from the same quarter of the preceding year. Net income was USD 15.0 million, a 60.1% decrease from the same period a year prior.
Analysis
GoodWhale has conducted an analysis of OLYMPIC STEEL‘s wellbeing. Based on their Risk Rating, OLYMPIC STEEL is a low risk investment in terms of financial and business aspects. GoodWhale has detected one risk warning in their balance sheet. By registering with GoodWhale, you can check out the details of this risk warning and decide if OLYMPIC STEEL is a good investment option for you. GoodWhale also offers other in-depth analysis for investors and potential investors, helping you make informed decisions when it comes to investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Olympic Steel. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | 40.9 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Olympic Steel. More…
| Operations | Investing | Financing |
| 223.41 | -16.56 | -166.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Olympic Steel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 475.52 | 48.37 |
Key Ratios Snapshot
Some of the financial key ratios for Olympic Steel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.7% | 656.9% | 3.1% |
| FCF Margin | ROE | ROA |
| 8.6% | 8.3% | 4.3% |
Peers
The steel industry is highly competitive, with Olympic Steel Inc facing off against Reliance Steel & Aluminum Co, Commercial Metals Co, and Lohakit Metal PCL. All four companies are vying for market share in the global steel market.
– Reliance Steel & Aluminum Co ($NYSE:RS)
Reliance Steel & Aluminum Co is a metals service center company. The Company provides value-added metals processing services and distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel and specialty metals. The Company operates through metals service centers segment. As of December 31, 2016, the Company operated through a network of approximately 300 metals service centers located in 39 states in the United States and in 13 other countries, including Australia, Belgium, Canada, China, France, Mexico, Singapore, South Korea, Spain, the Netherlands, the United Kingdom and Vietnam.
– Commercial Metals Co ($NYSE:CMC)
Commercial Metals Company is an American recycling company headquartered in Irving, Texas. The company manufactures, recycles and markets steel and metal products, related materials and services through a network including steel minimills, steel recycling facilities, downstream metals recyclers and metal fabrication plants.
As of 2022, Commercial Metals Company had a market capitalization of 5.59 billion dollars and a return on equity of 30.45%. The company’s strong financial position and commitment to shareholder value creation through disciplined reinvestment has resulted in consistent returns for investors over time. Commercial Metals Company is a well-positioned player in the global steel and metals industry, with a diversified product offering, a robust recycling platform and a growing presence in high-growth markets.
– Lohakit Metal PCL ($SET:LHK)
Lohakit Metal Public Company Limited is a Thailand-based company engaged in the manufacture and distribution of aluminum products and other metal products. The Company’s products include aluminum sheets, coils and strips, aluminum pipes and tubes, aluminum bars and rods, aluminum wire rods, aluminum plates, and others. It also provides services in aluminum product processing, such as cutting, punching, bending and welding. The Company operates its business through two business segments: aluminum products and others. The Company has its manufacturing plants located in Rayong Province and Samut Sakhon Province, Thailand.
Summary
Investors in OLYMPIC STEEL have experienced a difficult Q2 in FY 2023. The company reported total revenue of USD 569.3 million, a 19.7% decrease compared to the same period last year. Net income suffered a 60.1% decline year-over-year, coming in at USD 15.0 million.
While these figures are discouraging, investors may want to take a closer look at the company’s outlook and whether long-term strategies are in place to improve operations. Without more information, investors may decide to hold off on investing in the company or look for other opportunities.
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