Olympic Steel (ZEUS) AI Stock Analysis

• Market Cap: $364.37M
• Dividend Yield: 1.91%
• Average Volume (3M): 67.03K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.15
• Revenue Growth: -9.21%
• EPS Growth: -60.42%
• Country: US
• Employees: 2,187
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Steel
• EPS (TTM): 0.45
• Shares Outstanding: 11,197,621
• 10 Day Avg. Volume: 72,667
• 30 Day Avg. Volume: 67,031
• PEG Ratio: -0.34
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 91.39
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $37.00
• Price Target Upside: 13.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $36.00 ▲(10.63% Upside)

Olympic Steel's overall score is driven by a stable financial position and positive earnings call sentiment, despite challenges in profitability and valuation concerns. Technical analysis indicates mixed signals, and the stock appears overvalued based on its P/E ratio.

Olympic Steel Business Overview & Revenue Model

Company Description

Olympic Steel, Inc. processes, distributes, and storage metal products in the United States and internationally. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products. The Carbon Flat Products segment sells and distributes processed carbon and coated flat-rolled sheets, coil and plate products, and fabricated parts. The Specialty Metals Flat Products segment sells and distributes processed aluminum and stainless flat-rolled sheets and coil products, flat bar products, and fabricated parts, as well as stainless steel and aluminum plates, sheets, angles, rounds, flat bars, tubing and pipe, and prime tin mill products. The Tubular and Pipe Products segment distributes metal tubing products, pipes, bars, valves and fittings, and fabricated pressure parts. The company also provides various processing services comprising cutting-to-length, slitting, shearing, roll forming, shape correction, surface improvement, blanking, tempering, plate burning, and stamping as well as offers value-added processing of saw cutting, laser cutting, beveling, threading, and grooving services. In addition, the company provides shot blasting, grinding, edging, and polishing; bending, drilling, milling, tapping, boring, and sawing metal; machining, welding, assembly, and painting of component parts. Further, the company process metals to specified lengths, widths, shapes, and surface. It serves metal consuming industries, such as manufacturers and fabricators of transportation and material handling lift equipment, construction, mining and farm equipment, agriculture equipment, storage tanks, environmental and energy generation equipment, automobiles, food service, commercial appliances, and electrical equipment as well as military vehicles and equipment, general and plate fabricators, and metals service centers through direct sales force. Olympic Steel, Inc. was founded in 1954 and is based in Bedford Heights, Ohio.

How the Company Makes Money

Olympic Steel generates revenue primarily through the sale of steel and aluminum products, which includes flat-rolled steel, metal processing, and various value-added services. Key revenue streams include direct sales to manufacturers and end-users in sectors such as construction and automotive, as well as distribution services that cater to the needs of smaller businesses. The company benefits from long-term contracts and relationships with major clients, which provide a stable income base. Additionally, Olympic Steel's efficiency in metal processing and its strategic inventory management enable it to minimize costs and maximize profitability. Significant partnerships with suppliers and customers further enhance its earnings potential, allowing for competitive pricing and improved service delivery.

Olympic Steel Financial Statement Overview

Summary

Olympic Steel's financial performance is mixed, with stable balance sheet metrics and strong cash flow improvements, but concerning declines in revenue and net profit margins. The balance sheet indicates financial stability with a manageable debt-to-equity ratio, but challenges remain in revenue growth and profitability.

Income Statement

Olympic Steel has demonstrated mixed performance in its income statement. The company shows a decline in Total Revenue from $2.56 billion in 2022 to $1.91 billion in TTM (Trailing-Twelve-Months) 2025, reflecting a negative revenue growth trend. Gross Profit Margin in the TTM is approximately 23.6%, indicating stable profitability. However, Net Profit Margin has decreased to around 0.9% in the TTM, suggesting reduced profitability. The EBIT and EBITDA margins also reflect this trend with EBIT Margin at about 2.1% and EBITDA Margin at 3.8% in the TTM. Overall, while certain profitability metrics are stable, the declining revenue and net profit margins are concerning.

Balance Sheet

Olympic Steel maintains a reasonable balance sheet with a Debt-to-Equity Ratio of approximately 0.48 in the TTM, indicating manageable leverage. The Return on Equity (ROE) stands at around 2.9% in the TTM, which is modest. The Equity Ratio is about 53.9%, reflecting strong equity financing. Despite a stable equity position, the decline in ROE suggests challenges in generating returns on shareholders' equity. The balance sheet indicates financial stability, but there are opportunities for improving returns.

Cash Flow

The company's cash flow statements show a significant improvement in Free Cash Flow, from $4.19 million in 2024 to $51.87 million in the TTM, indicating robust Free Cash Flow growth. The Operating Cash Flow to Net Income Ratio is about 5.1, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is approximately 3.1. While cash flow metrics reflect positive growth, the company's ability to sustain this trajectory amid declining revenues remains a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.94B	2.16B	2.56B	2.31B	1.23B
Gross Profit	1.19B	451.18M	473.50M	486.06M	510.20M	255.04M
EBITDA	52.23M	78.68M	104.77M	153.91M	193.38M	20.51M
Net Income	14.37M	22.98M	44.53M	90.93M	121.05M	-5.59M
Balance Sheet
Total Assets	1.07B	1.04B	984.84M	891.63M	1.02B	640.61M
Cash, Cash Equivalents and Short-Term Investments	14.81M	11.91M	13.22M	12.19M	9.81M	5.53M
Total Debt	41.93M	310.27M	228.47M	194.41M	355.84M	186.15M
Total Liabilities	496.71M	470.57M	429.36M	375.66M	599.13M	339.60M
Stockholders Equity	578.20M	573.92M	555.48M	515.97M	424.44M	301.01M
Cash Flow
Free Cash Flow	68.14M	4.19M	153.83M	166.00M	-157.38M	51.85M
Operating Cash Flow	101.91M	33.68M	175.16M	185.85M	-146.37M	61.65M
Investing Cash Flow	-113.68M	-109.43M	-190.84M	-16.56M	-13.46M	-28.15M
Financing Cash Flow	17.14M	74.44M	16.72M	-166.91M	164.12M	-33.71M

Olympic Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEUS, the sentiment is Positive. The current price of 32.54 is above the 20-day moving average (MA) of 32.25, above the 50-day MA of 32.39, and below the 200-day MA of 33.72, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 84.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZEUS.

Olympic Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$407.77M	4.36	464.02%	22.59%	256.08%	335.67%
WS	77 Outperform	$1.61B	14.41	10.75%	1.95%	-9.83%	-28.70%
ZEUS	66 Neutral	$364.37M	26.56	2.50%	1.91%	-9.21%	-60.42%
FRD	64 Neutral	$123.12M	14.38	6.34%	0.91%	-5.81%	-29.10%
MTUS	61 Neutral	$667.97M	30.62	-3.13%	―	-18.93%	-141.88%
Sector *	56 Neutral	£2.53B	6.28	-0.23%	46.00%	10.12%	5.01%
ACNT	55 Neutral	$120.47M	―	-10.88%	―	-20.35%	77.51%

Olympic Steel Corporate Events

Olympic Steel Implements New Executive Severance Plan

Olympic Steel has approved a Key Employee Severance Benefit Plan, effective November 2, 2023, which will cover key executives, including the CFO and the President/COO, starting December 18, 2024. The severance benefits under this new plan are similar to those in the previously existing individual agreements, indicating a streamlined approach to executive compensation and retention strategies.