Olympic Steel Reaches Historic $2.2 Billion in Annual Revenues
January 15, 2023
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Olympic Steel Stock Fair Value – This is the first time I’m covering Olympic Steel ($NASDAQ:ZEUS) on this platform, and with the company announcing a historic deal, now seems to be the perfect opportunity to do so. A Brief IntroductionOlympic Steel is a North American metal service center that has been in business since the 1950s. Throughout its nearly 70 year history, the company has grown to become a reliable source for quality metal products and services, and has now reached an impressive milestone: $2.2 billion in annual revenues. It consistently offers customers top-notch service and a wide variety of products, including carbon, stainless and aluminum flat-rolled coils, sheets and blanks, as well as structural steel products such as beams, channels, angles and pipe. The company also provides specialized processing services such as tempering, slitting and cut-to-length capabilities.
In addition, it maintains a wide network of service centers throughout North America, allowing it to provide quick, reliable deliveries to its customers. Olympic Steel’s success is also attributed to its commitment to innovation and technology. The company has invested in state-of-the-art systems, including digital inventory management software and advanced production equipment, to streamline its processes and ensure customer satisfaction. It also has a robust safety program in place to ensure the safety of its team members and customers at all times. The $2.2 billion annual revenue milestone is a major achievement for Olympic Steel and a testament to the hard work of its team members. With its commitment to quality products and services, innovative technologies, employee safety and customer satisfaction, Olympic Steel is well-positioned to continue its success in the years to come.
Market Price
On Monday, Olympic Steel Inc. achieved an historic milestone, reaching $2.2 billion in annual revenues. The news sent Olympic Steel stock up in pre-market trading before it opened at $34.6 on Monday morning. Olympic Steel is a leading U.S. metals service center, providing metal products and services to customers across North America and around the world. Olympic Steel is known for its broad range of carbon, aluminum, stainless steel and alloy products as well as its value-added processing capabilities.
The company’s success is largely driven by its commitment to customer service, a dedication to quality and its ability to provide customers with timely and cost-effective solutions. Despite the news of this historic milestone, Olympic Steel stock closed at $33.6 on Monday, down 1.3% from its previous closing price of $34.1. Despite this slight dip, Olympic Steel appears to have a bright future ahead, as evidenced by its strong quarterly performance and continued commitment to customer service and quality. Live Quote…
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 |
| 2.66k | 111.83 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Olympic Steel. More…
| Operations | Investing | Financing |
| -2.94 | -13.46 | 164.12 |
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 |
| 1.04k | 524.33 | 41.6 |
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 |
| 16.4% | 110.7% | 6.1% |
| FCF Margin | ROE | ROA |
| -0.7% | 20.0% | 9.8% |
VI Analysis – Olympic Steel Stock Fair Value Calculator
According to the VI App, the company’s fundamentals reflect its long-term potential and its fair value per share is around $30.0. Currently, the stock is trading at $33.6, which is a 12% premium over its fair value. This suggests that the stock may be overvalued at the moment. Investors should consider their risk appetite before making a decision as to whether or not to invest in the company. The company has been performing well financially, with consistently increasing revenue, gross profit and operating income over the past few years. The balance sheet is also in good shape, with a large amount of cash and short-term investments compared to total liabilities. The return on equity is also quite healthy and has been steadily increasing over the past five years. Olympic Steel has also been expanding its operations, with investments in new plant and equipment and acquisitions of related businesses. This should help drive long-term growth and shareholder value. In addition, management has been investing in technology and automation to improve efficiency and reduce costs, which should also have a positive effect on the company’s bottom line. Overall, Olympic Steel appears to be a strong company with good fundamentals and potential for long-term growth. However, investors should still consider the risks involved before making any investment decisions. More…
VI Peers
The steel industry is highly competitive, with Olympic Steel Inc facing off against Reliance Steel & Aluminum Co, Commercial Metals Co, and Lohakit Metal PCL. All four companies are vying for market share in the global steel market.
– Reliance Steel & Aluminum Co ($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
Olympic Steel, a leading metal service center and steel processor, recently announced that they have achieved a historic $2.2 billion in annual revenues. This is a major milestone for the company, and a sign of their success in the industry. Investors should consider this performance as a positive sign of future potential growth.
With their expansive network of steel processing facilities, Olympic Steel is well-positioned to benefit from both domestic and international markets. Their strong financials and operational capabilities make them an attractive option for investors looking for long-term returns.
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