Olympic Steel (ZEUS) AI Stock Analysis

• Market Cap: $346.23M
• Dividend Yield: 2.04%
• Average Volume (3M): 56.49K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 1.14
• Revenue Growth: -9.21%
• EPS Growth: -60.42%
• Country: US
• Employees: 2,187
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.45
• Shares Outstanding: 11,197,621
• 10 Day Avg. Volume: 64,549
• 30 Day Avg. Volume: 56,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: 9.39
• 1Y Price Target: $36.50
• Price Target Upside: 18.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $35.00 ▲(13.20% Upside)

Olympic Steel's overall stock score reflects a stable financial position with strong cash flow management and strategic growth initiatives. However, challenges in profitability, market uncertainties, and a relatively high valuation weigh on the score. The earnings call provided a cautiously optimistic outlook, supporting the company's strategic direction.

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 demonstrates 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	275.12M	312.82M	228.47M	196.03M	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: Negative
• Last Price: 30.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEUS, the sentiment is Negative. The current price of 30.92 is below the 20-day moving average (MA) of 32.70, below the 50-day MA of 32.46, and below the 200-day MA of 32.59, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$384.02M	4.14	―	23.98%	303.10%	425.35%
WS	73 Outperform	$1.54B	12.80	10.31%	2.12%	-6.75%	-5.18%
ZEUS	66 Neutral	$346.23M	25.24	2.50%	2.04%	-9.21%	-60.42%
FRD	64 Neutral	$157.14M	18.35	6.23%	0.72%	-5.81%	-29.10%
MTUS	56 Neutral	$711.47M	-32.34	-3.23%	―	-18.93%	-141.88%
ACNT	49 Neutral	$119.25M	-43.45	-3.55%	―	-20.35%	77.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%