Olympic Story

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ZEUS -- USA Stock  

USD 28.26  0.26  0.91%

Olympic Steel Inventory Turnover is relatively stable at the moment as compared to the past year. Olympic Steel reported last year Inventory Turnover of 3.81. As of 03/27/2021, Accrued Expenses Turnover is likely to grow to 50.33, while Revenue Per Employee is likely to drop slightly above 718.3 K. The basic reasoning behind this post is to give retail investors our perspective on Olympic for April. We will forecast Olympic Steel value for retail investors.
Published over three weeks ago
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Are Olympic (NASDAQ:ZEUS) retail investors starting to hold back?
Olympic Steel has a beta of 0.88. Let's try to break down what Olympic's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Olympic Steel will likely underperform. The beta indicator helps investors understand whether Olympic Steel moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Olympic deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Olympic Steel. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Olympic Steel

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Olympic Steel's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Olympic Steel in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Olympic Steel. Your research has to be compared to or analyzed against Olympic Steel's peers to derive any actionable benefits. When done correctly, Olympic Steel's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Olympic Steel.

How important is Olympic Steel's Liquidity

Olympic Steel financial leverage refers to using borrowed capital as a funding source to finance Olympic Steel ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Olympic Steel financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Olympic Steel's total debt and its cash.

How Olympic utilizes its cash?

To perform a cash flow analysis of Olympic Steel, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Olympic Steel is receiving and how much cash it distributes out in a given period. The Olympic Steel cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Olympic Steel Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Olympic Steel reported last year Net Cash Flow from Operations of 61.65 Million

Detailed Outlook On Olympic Steel

Olympic Steel shows above-average downside volatility for the selected time horizon. We advise investors to inspect Olympic Steel further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Olympic Steel future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Olympic Steel's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Olympic Steel's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Returns Breakdown

Return on Investment0.12
Return on Assets(0.89)
Return on Equity(1.88)
Return Capital(0.0507)
Return on Sales(0.0283)

Will Olympic Steel latest spike continue?

Sortino ratio is down to 0.23. It may connote a possible volatility fall. Olympic Steel shows above-average downside volatility for the selected time horizon. We advise investors to inspect Olympic Steel further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Olympic Steel future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Olympic Steel's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Olympic Steel's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Olympic Steel

While few other entities under the steel industry are still a bit expensive, Olympic Steel may offer a potential longer-term growth to retail investors. To summarize, as of the 27th of March 2021, our analysis shows that Olympic Steel follows the market closely. The enterprise is overvalued and projects low probability of bankruptcy for the next 2 years. However, our ongoing 30 days Buy-Hold-Sell recommendation on the enterprise is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Olympic Steel. Please refer to our Terms of Use for any information regarding our disclosure principles.

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