Olympic Steel (ZEUS) AI Stock Analysis

• Market Cap: $396.62M
• Dividend Yield: 1.71%
• Average Volume (3M): 65.24K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.28
• 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: 78,133
• 30 Day Avg. Volume: 65,237
• 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: 1.63
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: 9.39
• 1Y Price Target: $36.50
• Price Target Upside: 26.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $40.00 ▲(38.17% Upside)

Olympic Steel's overall score reflects a stable financial position and strategic growth initiatives, tempered by high valuation and market uncertainties. The earnings call provided a cautiously optimistic outlook, but technical indicators suggest potential for a price correction.

Olympic Steel Business Overview & Revenue Model

Company Description

Olympic Steel (ZEUS) is a leading U.S. metal service center and manufacturer that specializes in processing and distributing a wide range of steel and aluminum products. The company operates in multiple sectors, including construction, automotive, and industrial markets, and offers core products such as flat-rolled steel, metal, and value-added services like slitting, shearing, and warehousing. Olympic Steel is recognized for its commitment to quality and customer service, providing tailored solutions to meet the diverse needs of its clients.

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 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	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: Positive
• Last Price: 28.95
• 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 28.95 is below the 20-day moving average (MA) of 29.86, below the 50-day MA of 31.42, and below the 200-day MA of 32.01, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 71.47 is Negative, neither overbought nor oversold. The STOCH value of 81.02 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	―	$465.89M	5.11	413.24%	20.01%	303.10%	425.35%
WS	―	$1.63B	13.57	11.22%	2.00%	-6.75%	-5.18%
ZEUS	―	$396.62M	31.45	2.40%	1.71%	-5.64%	-48.34%
FRD	―	$149.94M	17.51	6.34%	0.77%	-5.81%	-29.10%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MTUS	―	$735.73M	-33.45	-3.13%	―	-18.93%	-141.88%
ACNT	―	$113.91M	-41.50	-10.88%	―	-20.35%	77.51%

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.

Olympic Steel Reports Resilient Q2 2025 Performance

Olympic Steel is a prominent U.S. metals service center specializing in the sale and processing of various steel and aluminum products, with operations spanning 54 facilities across the country. In its latest earnings report, Olympic Steel announced a sequential increase in Adjusted EBITDA for the second quarter of 2025, despite facing macroeconomic challenges and industry-specific headwinds. The company reported a net income of $5.2 million, or $0.45 per diluted share, which marks a decrease from the $7.7 million, or $0.66 per diluted share, recorded in the same quarter of the previous year. Sales also saw a decline, totaling $496 million compared to $526 million in the second quarter of 2024.

Olympic Steel’s Earnings Call: Resilience Amid Challenges

The recent earnings call for Olympic Steel reflected a cautiously positive sentiment, highlighting the company’s resilience and growth in adjusted EBITDA and margins despite facing industry challenges. The successful integration of acquisitions and a strong financial position further underscore the positive outlook. However, concerns such as a decline in net income and industry-wide contraction temper the overall optimism.