- Do not be mesmerized by Olympic Steel YTD 2021 results. This was due to extraordinarily high steel prices. Any fundamental analysis should cover the results over a price cycle.
- ZEUS has poor business economics. Its average ROE over the past 11 years (2 steel price cycles) is about 1%. It had not been able to create shareholder value.
- Revenue growth was driven by asset growth. While it had undertaken acquisitions, the investment payback is measured in decades. Furthermore, the reinvestment required for growth is not sustainable.
For further details see:
Olympic Steel - Not Creating Shareholder Value