Olympic Steel (ZEUS) AI Stock Analysis

• Market Cap: $541.57M
• Dividend Yield: 1.42%
• Average Volume (3M): 83.60K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.30
• Revenue Growth: -5.64%
• EPS Growth: -48.34%
• Country: US
• Employees: 2,187
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.18
• Shares Outstanding: 11,261,678
• 10 Day Avg. Volume: 94,984
• 30 Day Avg. Volume: 83,604
• 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: 1.51
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 11.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $54.00 ▲(40.55% Upside)

ZEUS scores highest on financial stability and cash generation (low leverage and rising free cash flow), but the overall score is held back by weak profitability and slightly declining revenue. Technically, the uptrend is strong, yet extreme overbought signals raise pullback risk. Valuation is the biggest negative due to a high P/E with only a modest dividend yield.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio provides durable financial resilience through steel-industry cycles, preserving liquidity and financing flexibility. This allows the company to fund capex, weather downturns, pursue strategic opportunities, and avoid distress financing.

Improving Free Cash Flow

Material free cash flow growth and a robust free cash flow to net income ratio (0.61) indicate improved cash conversion. Sustained cash generation supports reinvestment, working capital needs, debt reduction, and shareholder returns without reliance on external funding.

Value-Added, Diversified Business Model

Providing processing services (shearing, slitting, laser cutting) across construction, automotive and manufacturing and strong supplier partnerships creates stickier customer relationships, differentiated service margins and supply reliability, reducing pure commodity exposure.

Negative Factors

Weak Net Profitability

A sub-1% net margin signals limited ability to translate gross profit into shareholder earnings. Persistently thin net margins constrain reinvestment, dividend capacity and buffer against raw-material cost swings, reflecting structural pressure on bottom-line profitability.

Declining Revenue Trend

A recent contraction in revenue suggests either demand softness or competitive share loss. For a service-center distributor, declining top-line undermines scale economies and exacerbates margin pressure, limiting capacity to absorb fixed costs and invest in growth initiatives.

Low Return on Equity

ROE at ~2.5% indicates weak returns on shareholder capital despite low leverage. This points to limited profitability and inefficient capital deployment relative to peers, raising concerns about long-term shareholder value creation unless operating performance materially improves.

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 related products to a variety of industries. The company's revenue model is based on selling steel products at a markup from the cost of procurement, along with additional revenue from value-added services such as processing and logistics. Key revenue streams include direct sales to manufacturers, fabricators, and contractors, as well as long-term contracts with major industrial clients. Significant partnerships with steel mills and suppliers also contribute to its earnings by ensuring a consistent supply of materials, allowing Olympic Steel to maintain competitive pricing and enhance its service offerings.

Olympic Steel Financial Statement Overview

Summary

Solid overall fundamentals supported by low leverage (debt-to-equity 0.07) and improving free cash flow (+31.38% TTM). Offsetting this, profitability is weak (net margin 0.77%) and revenue is slightly down (-1.56% TTM), indicating pressure on earnings power.

Income Statement

Olympic Steel's income statement shows a mixed performance. The TTM gross profit margin is strong at 63.48%, indicating efficient cost management. However, the net profit margin is low at 0.77%, reflecting challenges in converting revenue into profit. Revenue has slightly declined by 1.56% in the TTM, suggesting potential market pressures. The EBIT and EBITDA margins have also decreased compared to previous years, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.07 in the TTM, showing prudent leverage management. The equity ratio is healthy, indicating a strong capital structure. However, the return on equity has decreased to 2.50%, suggesting lower profitability on shareholder investments compared to previous years.

Cash Flow

Cash flow analysis reveals a positive trend with a 31.38% growth in free cash flow in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.44, indicating a moderate conversion of income to cash. The free cash flow to net income ratio is robust at 0.61, suggesting effective cash management despite lower net income.

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	68.79M	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	277.33M	312.82M	236.28M	202.13M	363.56M	195.00M
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: 38.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 38.42 is below the 20-day moving average (MA) of 47.90, below the 50-day MA of 43.48, and above the 200-day MA of 34.68, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 21.89 is Neutral, 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
WS	77 Outperform	$2.04B	16.26	11.71%	1.78%	-0.75%	-13.51%
FRD	69 Neutral	$139.61M	12.06	8.47%	0.75%	8.72%	43.14%
MSB	69 Neutral	$431.65M	25.64	29.57%	19.32%	-78.78%	-81.27%
ACNT	64 Neutral	$151.80M	174.68	-3.84%	―	-29.03%	―
ZEUS	63 Neutral	$541.57M	40.99	2.40%	1.42%	-5.64%	-48.34%
MTUS	62 Neutral	$830.89M	-99.40	-1.18%	―	-3.42%	-134.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Olympic Steel Corporate Events

Olympic Steel Announces Merger with Ryerson Holding

On October 28, 2025, Olympic Steel, Inc. announced a merger agreement with Ryerson Holding Corporation, where Olympic Steel will become a wholly owned subsidiary of Ryerson. The merger, approved by Olympic Steel’s board, involves a stock exchange and cash considerations for shareholders, with implications for stock-based and long-term cash awards. The merger is subject to customary closing conditions, including shareholder and regulatory approvals, and is expected to enhance the combined company’s market position.

The most recent analyst rating on (ZEUS) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Olympic Steel stock, see the ZEUS Stock Forecast page.