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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ZEUS

Olympic Steel's recent performance has been driven by several positive factors. The company reported Q3 2025 net income of $2.2 million, or $0.18 per diluted share, demonstrating resilience despite industry headwinds. A recent rating upgrade to "Buy" by an analyst cites attractive valuation and anticipated global metals industry recovery. Additionally, Olympic Steel's robust financial condition and strong track record of increasing dividends are notable strengths. The proposed merger with Ryerson Holding Corporation will enhance the combined company's presence as the second-largest North American metals service center.

1.c. Company Highlights

2. Olympic Steel's Q2 2025 Earnings: A Resilient Performance Amidst Market Uncertainty

Olympic Steel reported a revenue of $496 million and a net income of $5.2 million for the second quarter of 2025. The company's adjusted EBITDA rose 26% sequentially to $20.3 million, driven by improved margins in their flat-rolled business. Earnings per share (EPS) came in at $0.5, beating analyst estimates of $0.47. The company's financial performance was marked by a pullback in volumes due to customer buy-ahead activity in response to initial tariffs. However, flat-rolled shipments for the first half of 2025 remained slightly ahead of the same period in 2024, outperforming the industry contraction.

Publication Date: Sep -02

📋 Highlights
  • Q2 2025 Sales:: $496 million, net income $5.2 million.
  • Adjusted EBITDA Growth:: 26% sequentially to $20.3 million, driven by flat-rolled margin improvements.
  • Segment EBITDA Contributions:: Carbon ($12.5M), Pipe and Tube ($6.7M), Specialty Metals ($5.9M, +60% QoQ).
  • Capital Expenditures:: $35 million in 2025 for automation, new lines, and expansion.
  • Acquisition Momentum:: Increased M&A flow in Q2, focusing on strategic growth opportunities.

Segmental Performance

All three business segments – Carbon, Pipe and Tube, and Specialty Metals – contributed positive EBITDA. The Carbon segment reported EBITDA of $12.5 million, driven by strength in manufactured products. Pipe and Tube segment reported EBITDA of $6.7 million, with a focus on fabrication growth and improved margins. Specialty Metals segment reported EBITDA of $5.9 million, reflecting a 60% improvement from the first quarter due to market improvements in stainless and aluminum products.

Growth Initiatives and Outlook

Olympic Steel is investing $35 million in capital expenditures in 2025, primarily on organic growth initiatives such as new cut-to-length lines, automation, and expansion. The company expects third-quarter volume to be down seasonally but is optimistic about the long-term outlook for the steel industry. Olympic Steel sees positive trends, including strong quoting for fabricating and outsourced value-add work from OEMs and strength in the data center business.

Valuation and Metrics

With a P/E Ratio of 26.96 and an EV/EBITDA of 9.16, the market seems to be pricing in a certain level of growth for Olympic Steel. The company's Return on Invested Capital (ROIC) stands at 2.96%, while its Return on Equity (ROE) is at 2.5%. The Net Debt to EBITDA ratio is 3.78, indicating a moderate level of leverage. The Free Cash Flow Yield is 18.44%, suggesting a potentially attractive return for investors.

Market Trends and Tariffs

The company is seeing positive trends in fabrication inquiries, particularly from OEMs looking to onshore manufacturing. While market uncertainty persists due to tariffs, Olympic Steel expects hot-rolled steel pricing to remain stable in the second half of the year, barring any significant changes in tariffs or economic conditions. The bonus depreciation provision in the tax legislation is seen as a significant benefit for both the company and its customers, allowing for faster asset depreciation.

3. NewsRoom

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Olympic Steel (NASDAQ:ZEUS) Stock Price Passes Above 200 Day Moving Average – Here’s Why

Nov -20

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Ethic Inc. Sells 8,576 Shares of Olympic Steel, Inc. $ZEUS

Oct -30

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Olympic Steel Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Olympic Steel, Inc. - ZEUS

Oct -29

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ZEUS Stock Alert: Halper Sadeh LLC is Investigating Whether the Sale of Olympic Steel, Inc. is Fair to Shareholders

Oct -29

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Shareholder Alert: The Ademi Firm investigates whether Olympic Steel Inc. is obtaining a Fair Price for its Public Shareholders

Oct -29

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Ryerson and Olympic Steel Announce Merger Agreement

Oct -28

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Olympic Steel Reports Third-Quarter 2025 Results

Oct -28

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With A Recovery In Sight, Olympic Steel Thinks Positive, Shares Seem Fair (Rating Upgrade)

Oct -22

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Carbon Flat Products

Expected Growth: 4.83%

Olympic Steel's Carbon Flat Products segment growth of 4.83% is driven by increasing demand from the automotive and construction industries, coupled with strategic acquisitions and investments in operational efficiency. Additionally, the company's focus on value-added products and cost-saving initiatives have contributed to the segment's growth.

Specialty Metals Flat Products

Expected Growth: 4.83%

Olympic Steel's Specialty Metals Flat Products segment growth of 4.83% is driven by increasing demand from the automotive and aerospace industries, coupled with strategic acquisitions and investments in value-added processing capabilities. Additionally, the company's focus on operational efficiency and cost reduction initiatives have contributed to the segment's growth.

Tubular and Pipe Products

Expected Growth: 4.65%

Olympic Steel's Tubular and Pipe Products segment growth of 4.65% is driven by increasing demand from the energy sector, particularly in oil and gas exploration and production. Additionally, growth in the automotive industry and infrastructure development projects contribute to the segment's expansion. Furthermore, the company's strategic acquisitions and investments in operational efficiency also support the segment's growth.

7. Detailed Products

Flat Rolled Carbon Steel

A type of steel alloy used in various applications, including automotive, construction, and consumer goods.

Flat Rolled Stainless Steel

A corrosion-resistant steel alloy used in applications requiring high sanitation and durability.

Tubular and Pipe Products

Steel pipes and tubes used in oil and gas, construction, and industrial applications.

Plate Products

Thick steel plates used in heavy equipment, construction, and industrial applications.

Value-Added Products

Processed steel products, including cut-to-length, blanked, and machined parts.

8. Olympic Steel, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Olympic Steel, Inc. is medium due to the availability of alternative materials and products that can replace steel in various applications.

Bargaining Power Of Customers

The bargaining power of customers for Olympic Steel, Inc. is low due to the company's strong relationships with its customers and its ability to provide customized products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Olympic Steel, Inc. is medium due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Olympic Steel, Inc. is low due to the high barriers to entry in the steel industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Olympic Steel, Inc. is high due to the competitive nature of the steel industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.39%
Debt Cost 10.84%
Equity Weight 73.61%
Equity Cost 12.25%
WACC 11.88%
Leverage 35.84%

11. Quality Control: Olympic Steel, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CVR Partners

A-Score: 7.2/10

Value: 7.3

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Friedman Industries

A-Score: 5.4/10

Value: 7.0

Growth: 6.3

Quality: 5.1

Yield: 2.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Ascent Industries

A-Score: 4.8/10

Value: 6.5

Growth: 1.0

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Universal Stainless & Alloy Products

A-Score: 4.5/10

Value: 4.9

Growth: 4.8

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Olympic Steel

A-Score: 4.5/10

Value: 7.6

Growth: 5.0

Quality: 4.7

Yield: 3.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Metallus

A-Score: 4.4/10

Value: 7.2

Growth: 2.3

Quality: 5.2

Yield: 0.0

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.45$

Current Price

40.45$

Potential

-0.00%

Expected Cash-Flows