Olympic Steel (ZEUS) AI Stock Analysis

• Market Cap: $452.94M
• Dividend Yield: 1.58%
• Average Volume (3M): 185.48K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.32
• 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: 11,197,621
• 10 Day Avg. Volume: 98,290
• 30 Day Avg. Volume: 185,480
• 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: 1.40
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: 9.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.88
• Revenue Forecast (FY): $1.91B

• Rating: 61 Neutral
• Price Target: $41.00 ▲(6.72% Upside)

Olympic Steel's overall stock score is primarily driven by its stable financial position and strong cash flow management. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Cash Flow Management

The significant growth in free cash flow indicates effective cash management, providing financial flexibility for future investments and operations.

Low Leverage

Prudent leverage management reduces financial risk and interest expenses, enhancing long-term stability and capacity to weather economic downturns.

Efficient Cost Management

High gross profit margins reflect effective cost control, which can sustain profitability even amidst revenue fluctuations, supporting long-term financial health.

Negative Factors

Declining Revenue

Decreasing revenue indicates potential challenges in market demand or competitive pressures, which could impact future growth and profitability.

Low Net Profit Margin

A low net profit margin suggests difficulties in maintaining profitability, potentially limiting reinvestment capacity and shareholder returns over time.

Decreased Return on Equity

A declining return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital attraction.

Olympic Steel Business Overview & Revenue Model

Company Description

Olympic Steel (ZEUS) is a leading value-added steel service center and distributor headquartered in the United States. The company operates across various sectors including construction, automotive, and manufacturing, providing a range of products such as carbon, stainless, and alloy steel, along with processing services like shearing, slitting, and laser cutting. Olympic Steel focuses on delivering high-quality steel products and services to meet the diverse needs of its customers.

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

Olympic Steel shows a stable financial position with strong cash flow management and low leverage. However, challenges in profitability and revenue growth could impact future performance.

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: Negative
• RSI: Negative
• 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 38.42 is above the 20-day moving average (MA) of 36.35, above the 50-day MA of 32.86, and above the 200-day MA of 32.09, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 73.20 is Negative, neither overbought nor oversold. The STOCH value of 89.68 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	$431.91M	4.66	413.24%	21.17%	303.10%	425.35%
WS	71 Outperform	$1.83B	15.24	11.22%	1.78%	-6.75%	-5.18%
FRD	62 Neutral	$148.46M	17.34	8.47%	0.82%	8.72%	43.14%
MTUS	62 Neutral	$724.69M	―	-1.18%	―	-3.42%	-134.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZEUS	61 Neutral	$452.94M	34.45	2.40%	1.58%	-5.64%	-48.34%
ACNT	61 Neutral	$139.25M	160.24	-3.84%	―	-29.03%	―

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.