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Olympic Steel (ZEUS)
NASDAQ:ZEUS
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Olympic Steel
(NASDAQ:ZEUS)
58Neutral
Olympic Steel (ZEUS) vs. S&P 500 (SPY)
Market Cap
$357.09M
Dividend Yield1.9%
Average Volume (3M)85.98K
Price to Earnings (P/E)22.9
Beta (1Y)1.11
Revenue Growth-9.65%
EPS Growth-61.57%
CountryUS
Employees2,187
SectorBasic Materials
Sector Strength60
IndustrySteel
Share Statistics
EPS (TTM)0.21
Shares Outstanding11,162,704
10 Day Avg. Volume95,056
30 Day Avg. Volume85,981
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.33
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside32.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Olympic Steel Business Overview & Revenue Model
Company DescriptionOlympic 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 MoneyOlympic Steel generates revenue primarily through the sale of processed and distributed metal products. The company purchases large volumes of flat-rolled carbon, stainless steel, and aluminum from major mills and suppliers, which it then processes to customer specifications using advanced machinery and technology. These products are subsequently sold to a wide range of industries, including automotive, construction, and manufacturing, either directly or through distribution networks. Olympic Steel's business model relies on maintaining strong relationships with both its suppliers and customers, optimizing inventory management, and leveraging its processing capabilities to add value to raw materials. Additionally, strategic partnerships and long-term contracts with key clients and suppliers play a crucial role in driving sales and sustaining profitability.
Olympic Steel Financial Statement Overview
Summary
Olympic Steel's financial performance is mixed. The income statement shows declining revenue and profit margins, while the balance sheet is strong with no debt and high equity. Cash flow management needs improvement due to a decline in free cash flow, although liquidity is not a concern.Income Statement
Olympic Steel's revenue has declined over the past two years, with a notable drop from 2022 to 2023, indicating challenges in maintaining growth. Margins have also been under pressure, with the net profit margin dropping from 4.2% in 2023 to 1.2% in 2024. The gross profit margin has remained relatively stable, but the decline in EBIT and EBITDA margins reflects potential inefficiencies or increased costs.―
Balance Sheet
The balance sheet shows a strong equity position, with an equity ratio of over 80% in 2024, indicating a solid financial foundation. The company has significantly reduced its debt, resulting in a debt-free position in 2024, which enhances financial stability. However, the return on equity has decreased significantly due to declining net income, which could impact future growth.60
Cash Flow
Operating cash flow remains positive, but a substantial decline in free cash flow from 2023 to 2024 raises concerns about cash generation efficiency. The free cash flow to net income ratio has decreased, indicating less cash being generated relative to profits. Despite a challenging year, cash management remains adequate with no significant liquidity issues.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.94B | 2.16B | 2.56B | 2.31B | 1.23B | Gross Profit |
| 1.92B | 475.60M | 486.06M | 510.20M | 255.04M | EBIT |
| 47.86M | 77.67M | 133.75M | 172.47M | 573.00K | EBITDA |
| 47.86M | 104.77M | 153.24M | 191.50M | 18.99M | Net Income Common Stockholders |
| 22.98M | 44.53M | 90.93M | 121.05M | -5.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.91M | 13.22M | 12.19M | 9.81M | 5.53M | Total Assets |
| 1.04B | 984.84M | 891.63M | 1.02B | 640.61M | Total Debt |
| 310.27M | 228.47M | 194.41M | 355.84M | 186.15M | Net Debt |
| 298.35M | 215.24M | 182.22M | 346.03M | 180.62M | Total Liabilities |
| 470.57M | 429.36M | 375.66M | 599.13M | 339.60M | Stockholders Equity |
| 15.31M | 555.48M | 515.97M | 424.44M | 301.01M |
| Cash Flow | Free Cash Flow | |||
| 4.19M | 153.83M | 166.00M | -157.38M | 51.85M | Operating Cash Flow |
| 33.68M | 175.16M | 185.85M | -146.37M | 61.65M | Investing Cash Flow |
| -109.43M | -190.84M | -16.56M | -13.46M | -28.15M | Financing Cash Flow |
| 74.44M | 16.72M | -166.91M | 164.12M | -33.71M |
Olympic Steel Technical Analysis
Negative
31.05
Price Trends
31.51
Negative
32.96
Negative
36.43
Negative
Market Momentum
0.25
Negative
46.69
Neutral
24.41
Neutral
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 31.05 is below the 20-day moving average (MA) of 31.47, below the 50-day MA of 31.51, and below the 200-day MA of 36.43, indicating a bearish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZEUS.
Olympic Steel Risk Analysis
Olympic Steel disclosed 28 risk factors in its most recent earnings report. Olympic Steel reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Olympic Steel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $5.13B | 75.77 | 1.78% | 1.56% | -7.93% | -89.29% | |
58 Neutral | $650.08M | 27.86 | -7.29% | 1.53% | -4.98% | -192.96% | |
58 Neutral | $357.09M | 22.92 | 2.95% | 1.90% | -9.65% | -61.57% | |
53 Neutral | $829.14M | ― | -41.03% | 2.56% | -2.75% | -339.59% | |
51 Neutral | $6.76B | ― | -10.58% | 2.88% | -39.34% | -500.52% | |
49 Neutral | $1.94B | -1.23 | -21.28% | 3.73% | 1.19% | -29.73% | |
41 Neutral | $4.26B | ― | -17.27% | ― | -15.00% | -423.14% |
* Basic Materials Sector Average
Performance Comparison
ZEUS
Olympic Steel
32.35
-20.87
-39.21%
ALB
Albemarle
57.93
-69.40
-54.50%
CLF
Cleveland-Cliffs
7.00
-10.32
-59.58%
CMC
Commercial Metals Company
46.09
-10.40
-18.41%
GSM
Ferroglobe
3.74
-1.63
-30.35%
RDUS
Schnitzer Steel Industries
29.34
11.72
66.52%
Olympic Steel Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -2.94%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong shipments and strategic investments, along with positive impacts from recent acquisitions. However, these were tempered by a decline in net income and higher operating expenses. The company remains optimistic about future growth despite macroeconomic challenges.Q1-2025 Updates
Positive Updates
Strong First Quarter Shipments and Sales
Olympic Steel reported strong shipments and first quarter sales of $493 million with net income of $2.5 million. Flat-rolled shipping volumes were up 24% sequentially and 6% over the prior year.
Positive Impact from Recent Acquisition
The recent acquisition of MetalWorks completed in late 2024 was immediately accretive to results, contributing positively to the Carbon segment's performance.
Debt Reduction and Credit Facility Extension
The company reduced its debt by $37 million, lowering total debt to $235 million. They also announced a five-year extension of their $625 million asset-based revolving credit facility.
John Deere Supplier Recognition
Olympic Steel was recognized as a partner-level supplier in the John Deere Achieving Excellence program, which is John Deere's highest supplier rating.
Strategic Investments and Expansions
The company opened a new facility in Houston and is making several capital investments to enhance capacity and efficiency, including a new cut-to-length line and a high-speed light gauge narrow width specialty metal slitter.
Negative Updates
Decline in Net Income and EBITDA
Net income for the first quarter totaled $2.5 million compared with $8.7 million in the first quarter of 2024. EBITDA was $16.1 million compared with $23.3 million in the prior year period.
Higher Operating Expenses
Consolidated operating expenses for the first quarter totaled $110.6 million compared with $103.2 million in the first quarter of 2024, partly due to the acquisition of MetalWorks.
Slower OEM Orders in Pipe and Tube Market
The Pipe and Tube segment experienced slower OEM orders, delivering EBITDA of $6.4 million, indicating a lag in performance compared to the Carbon segment.
Company Guidance
During the call, Olympic Steel provided guidance indicating strong performance despite a challenging macro environment. The company reported first-quarter sales of $493 million and a net income of $2.5 million. Their flat-rolled shipping volumes increased by 24% sequentially and 6% year-over-year, reaching the highest levels since the third quarter of 2021. EBITDA for the quarter was $16.1 million, with the Carbon segment contributing $10.9 million and the Pipe and Tube segment $6.4 million. The Specialty Metals segment reported an EBITDA of $3.6 million. Olympic Steel also highlighted a $37 million reduction in debt and the extension of their $625 million asset-based revolving credit facility. The company emphasized its strategy of diversification into metal-intensive end markets, expanding fabrication capabilities, and focusing on higher-margin products, supported by ongoing M&A activities, including the recent acquisition of MetalWorks.Olympic Steel Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Olympic Steel Implements New Executive Severance Plan
Neutral
Dec 23, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.