Steelcase Inc (SCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCS - US8581552036 - Common Stock
16.14 USD
+0.02 (+0.12%)
16.1596 USD
+0.02 (+0.12%)
SCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of SCS get a neutral evaluation. Nothing too spectacular is happening here. SCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SCS had positive earnings in the past year.
SCS had a positive operating cash flow in the past year.
Each year in the past 5 years SCS has been profitable.
Of the past 5 years SCS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.92%, SCS is in the better half of the industry, outperforming 69.14% of the companies in the same industry.
SCS's Return On Equity of 9.07% is fine compared to the rest of the industry. SCS outperforms 69.14% of its industry peers.
With a decent Return On Invested Capital value of 7.24%, SCS is doing good in the industry, outperforming 65.43% of the companies in the same industry.
SCS had an Average Return On Invested Capital over the past 3 years of 6.65%. This is below the industry average of 10.60%.
The last Return On Invested Capital (7.24%) for SCS is above the 3 year average (6.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 9.07% | ||
| ROIC | 7.24% |
ROA(3y)3.35%
ROA(5y)2.26%
ROE(3y)8.39%
ROE(5y)5.66%
ROIC(3y)6.65%
ROIC(5y)4.99%
1.3 Margins
SCS has a Profit Margin of 2.83%. This is in the better half of the industry: SCS outperforms 60.49% of its industry peers.
In the last couple of years the Profit Margin of SCS has declined.
Looking at the Operating Margin, with a value of 4.68%, SCS is in line with its industry, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Operating Margin of SCS has declined.
SCS has a Gross Margin of 33.60%. This is comparable to the rest of the industry: SCS outperforms 54.32% of its industry peers.
In the last couple of years the Gross Margin of SCS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.68% | ||
| PM (TTM) | 2.83% | ||
| GM | 33.6% |
OM growth 3Y94.51%
OM growth 5Y-5.06%
PM growth 3Y197.03%
PM growth 5Y-6.86%
GM growth 3Y6.72%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
SCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SCS has been reduced compared to 1 year ago.
SCS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SCS has been reduced compared to a year ago.
2.2 Solvency
SCS has an Altman-Z score of 3.24. This indicates that SCS is financially healthy and has little risk of bankruptcy at the moment.
SCS's Altman-Z score of 3.24 is fine compared to the rest of the industry. SCS outperforms 67.90% of its industry peers.
SCS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
SCS has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.24 |
ROIC/WACC0.89
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.66 indicates that SCS should not have too much problems paying its short term obligations.
The Current ratio of SCS (1.66) is better than 60.49% of its industry peers.
SCS has a Quick Ratio of 1.18. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
SCS's Quick ratio of 1.18 is in line compared to the rest of the industry. SCS outperforms 43.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
SCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.04%, which is quite good.
Measured over the past years, SCS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.84% on average per year.
The Revenue has been growing slightly by 3.92% in the past year.
SCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.19% yearly.
EPS 1Y (TTM)12.04%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%15.38%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%4.83%
3.2 Future
SCS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
SCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y2.36%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.26%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.34, the valuation of SCS can be described as correct.
81.48% of the companies in the same industry are more expensive than SCS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.92. SCS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.68, the valuation of SCS can be described as correct.
Based on the Price/Forward Earnings ratio, SCS is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SCS to the average of the S&P500 Index (23.57), we can say SCS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.64
PEG (5Y)N/A
EPS Next 2Y7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.90, SCS pays a better dividend. On top of this SCS pays more dividend than 86.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, SCS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
The dividend of SCS decreases each year by -6.70%.
SCS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SCS decreased recently.
Dividend Growth(5Y)-6.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
51.74% of the earnings are spent on dividend by SCS. This is a bit on the high side, but may be sustainable.
DP51.74%
EPS Next 2Y7.07%
EPS Next 3YN/A
16.14
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.81%
Inst Owner Change0%
Ins Owners3.66%
Ins Owner Change-83.66%
Market Cap1.85B
Revenue(TTM)3.26B
Net Income(TTM)92.20M
Analysts76.67
Price Target17.16 (6.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP51.74%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.37%
Min EPS beat(2)22.07%
Max EPS beat(2)46.68%
EPS beat(4)4
Avg EPS beat(4)32.33%
Min EPS beat(4)22.07%
Max EPS beat(4)46.68%
EPS beat(8)8
Avg EPS beat(8)29.15%
EPS beat(12)12
Avg EPS beat(12)81.87%
EPS beat(16)14
Avg EPS beat(16)31.96%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)0%
PT rev (3m)3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.06%
EPS NY rev (1m)0%
EPS NY rev (3m)5.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 107.14 | ||
| P/B | 1.82 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)1.21
EY7.5%
EPS(NY)1.27
Fwd EY7.88%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.15
OCFY0.93%
SpS28.38
BVpS8.85
TBVpS5.83
PEG (NY)5.64
PEG (5Y)N/A
Graham Number15.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 9.07% | ||
| ROCE | 8.74% | ||
| ROIC | 7.24% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 11.08% | ||
| OM | 4.68% | ||
| PM (TTM) | 2.83% | ||
| GM | 33.6% | ||
| FCFM | N/A |
ROA(3y)3.35%
ROA(5y)2.26%
ROE(3y)8.39%
ROE(5y)5.66%
ROIC(3y)6.65%
ROIC(5y)4.99%
ROICexc(3y)8.17%
ROICexc(5y)6.22%
ROICexgc(3y)11.25%
ROICexgc(5y)8.46%
ROCE(3y)8.02%
ROCE(5y)6.02%
ROICexgc growth 3Y119.71%
ROICexgc growth 5Y-6.65%
ROICexc growth 3Y114.39%
ROICexc growth 5Y-7.23%
OM growth 3Y94.51%
OM growth 5Y-5.06%
PM growth 3Y197.03%
PM growth 5Y-6.86%
GM growth 3Y6.72%
GM growth 5Y0.45%
F-Score7
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 70.45% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 7.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.24 |
F-Score7
WACC8.09%
ROIC/WACC0.89
Cap/Depr(3y)60.1%
Cap/Depr(5y)60.3%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.72%
Profit Quality(3y)170.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.04%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%15.38%
EPS Next Y2.36%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.92%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%4.83%
Revenue Next Year4.26%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.61%
EBIT growth 3Y103.3%
EBIT growth 5Y-8.09%
EBIT Next Year59.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-115.51%
FCF growth 3YN/A
FCF growth 5Y-18.81%
OCF growth 1Y-94.14%
OCF growth 3YN/A
OCF growth 5Y-16.27%
Steelcase Inc / SCS FAQ
What is the ChartMill fundamental rating of Steelcase Inc (SCS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SCS.
Can you provide the valuation status for Steelcase Inc?
ChartMill assigns a valuation rating of 4 / 10 to Steelcase Inc (SCS). This can be considered as Fairly Valued.
How profitable is Steelcase Inc (SCS) stock?
Steelcase Inc (SCS) has a profitability rating of 5 / 10.
What are the PE and PB ratios of Steelcase Inc (SCS) stock?
The Price/Earnings (PE) ratio for Steelcase Inc (SCS) is 13.34 and the Price/Book (PB) ratio is 1.82.
What is the earnings growth outlook for Steelcase Inc?
The Earnings per Share (EPS) of Steelcase Inc (SCS) is expected to grow by 2.36% in the next year.