STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
NYSE:SCS - New York Stock Exchange, Inc. - US8581552036 - Common Stock - Currency: USD
SCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. SCS has an average financial health and profitability rating. SCS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SCS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SCS had positive earnings in the past year.
In the past year SCS had a positive cash flow from operations.
SCS had positive earnings in each of the past 5 years.
Of the past 5 years SCS 4 years had a positive operating cash flow.
1.2 Ratios
SCS's Return On Assets of 4.76% is fine compared to the rest of the industry. SCS outperforms 67.07% of its industry peers.
SCS has a better Return On Equity (11.86%) than 71.95% of its industry peers.
SCS's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. SCS outperforms 67.07% of its industry peers.
SCS had an Average Return On Invested Capital over the past 3 years of 3.63%. This is significantly below the industry average of 10.07%.
The 3 year average ROIC (3.63%) for SCS is below the current ROIC(8.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 11.86% | ||
| ROIC | 8.3% |
ROA(3y)1.73%
ROA(5y)2.78%
ROE(3y)4.46%
ROE(5y)7.24%
ROIC(3y)3.63%
ROIC(5y)4.85%
1.3 Margins
SCS has a better Profit Margin (3.51%) than 63.41% of its industry peers.
In the last couple of years the Profit Margin of SCS has declined.
SCS's Operating Margin of 6.00% is in line compared to the rest of the industry. SCS outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of SCS has declined.
Looking at the Gross Margin, with a value of 33.27%, SCS is in line with its industry, outperforming 51.22% of the companies in the same industry.
SCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 3.51% | ||
| GM | 33.27% |
OM growth 3Y8.93%
OM growth 5Y-3.59%
PM growth 3Y35.96%
PM growth 5Y-7.2%
GM growth 3Y2.61%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
SCS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SCS has more shares outstanding than it did 1 year ago.
SCS has less shares outstanding than it did 5 years ago.
SCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that SCS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SCS (2.98) is better than 62.20% of its industry peers.
SCS has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as SCS would need 2.79 years to pay back of all of its debts.
SCS's Debt to FCF ratio of 2.79 is fine compared to the rest of the industry. SCS outperforms 75.61% of its industry peers.
SCS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
SCS has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.03
WACC8.09%
2.3 Liquidity
SCS has a Current Ratio of 1.57. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
SCS has a Current ratio (1.57) which is comparable to the rest of the industry.
SCS has a Quick Ratio of 1.21. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SCS (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.35% over the past year.
Measured over the past years, SCS shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.97% on average per year.
Looking at the last year, SCS shows a decrease in Revenue. The Revenue has decreased by -1.03% in the last year.
SCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.70% yearly.
EPS 1Y (TTM)21.35%
EPS 3Y22.17%
EPS 5Y-4.97%
EPS Q2Q%0%
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y6.77%
Revenue growth 5Y-1.7%
Sales Q2Q%2.19%
3.2 Future
The Earnings Per Share is expected to grow by 11.02% on average over the next years. This is quite good.
Based on estimates for the next years, SCS will show a small growth in Revenue. The Revenue will grow by 1.69% on average per year.
EPS Next Y14.58%
EPS Next 2Y8.55%
EPS Next 3Y11.02%
EPS Next 5YN/A
Revenue Next Year-0.16%
Revenue Next 2Y1.01%
Revenue Next 3Y1.69%
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
A Price/Earnings ratio of 10.25 indicates a reasonable valuation of SCS.
Based on the Price/Earnings ratio, SCS is valued cheaper than 90.24% of the companies in the same industry.
SCS is valuated cheaply when we compare the Price/Earnings ratio to 28.36, which is the current average of the S&P500 Index.
SCS is valuated reasonably with a Price/Forward Earnings ratio of 10.10.
Based on the Price/Forward Earnings ratio, SCS is valued cheaper than 89.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.49, SCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
SCS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCS is cheaper than 91.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCS is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 4.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
SCS's Dividend Yield is rather good when compared to the industry average which is at 2.06. SCS pays more dividend than 91.46% of the companies in the same industry.
SCS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of SCS decreases each year by -5.36%.
SCS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SCS decreased recently.
Dividend Growth(5Y)-5.36%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
43.13% of the earnings are spent on dividend by SCS. This is a bit on the high side, but may be sustainable.
DP43.13%
EPS Next 2Y8.55%
EPS Next 3Y11.02%
STEELCASE INC-CL A
NYSE:SCS (2/3/2025, 8:04:00 PM)
After market: 11.12 +0.05 (+0.45%)11.07
-0.41 (-3.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.68%
Inst Owner Change0.43%
Ins Owners1.81%
Ins Owner Change1.61%
Market Cap1.26B
Analysts80
Price Target16.83 (52.03%)
Short Float %1.74%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.42
Dividend Growth(5Y)-5.36%
DP43.13%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.34%
Min EPS beat(2)3.66%
Max EPS beat(2)35.01%
EPS beat(4)4
Avg EPS beat(4)26.71%
Min EPS beat(4)3.66%
Max EPS beat(4)58.42%
EPS beat(8)8
Avg EPS beat(8)109.77%
EPS beat(12)11
Avg EPS beat(12)35.75%
EPS beat(16)13
Avg EPS beat(16)88.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)0.2%
Revenue beat(12)4
Avg Revenue beat(12)0.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.41%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-9.89%
EPS NQ rev (3m)-18%
EPS NY rev (1m)6.78%
EPS NY rev (3m)6.03%
Revenue NQ rev (1m)-6.21%
Revenue NQ rev (3m)-8.62%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.4 | ||
| P/FCF | 7.87 | ||
| P/OCF | 6.13 | ||
| P/B | 1.35 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)1.08
EY9.76%
EPS(NY)1.1
Fwd EY9.9%
FCF(TTM)1.41
FCFY12.71%
OCF(TTM)1.81
OCFY16.31%
SpS27.73
BVpS8.2
TBVpS5.08
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 11.86% | ||
| ROCE | 11.51% | ||
| ROIC | 8.3% | ||
| ROICexc | 11.02% | ||
| ROICexgc | 15.46% | ||
| OM | 6% | ||
| PM (TTM) | 3.51% | ||
| GM | 33.27% | ||
| FCFM | 5.07% |
ROA(3y)1.73%
ROA(5y)2.78%
ROE(3y)4.46%
ROE(5y)7.24%
ROIC(3y)3.63%
ROIC(5y)4.85%
ROICexc(3y)4.24%
ROICexc(5y)6.28%
ROICexgc(3y)5.81%
ROICexgc(5y)8.44%
ROCE(3y)5.03%
ROCE(5y)6.74%
ROICexcg growth 3Y20.25%
ROICexcg growth 5Y-5.56%
ROICexc growth 3Y17.42%
ROICexc growth 5Y-5.6%
OM growth 3Y8.93%
OM growth 5Y-3.59%
PM growth 3Y35.96%
PM growth 5Y-7.2%
GM growth 3Y2.61%
GM growth 5Y0.37%
F-Score7
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.79 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 55.93% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.98% | ||
| Profit Quality | 144.67% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.98 |
F-Score7
WACC8.09%
ROIC/WACC1.03
Cap/Depr(3y)64.91%
Cap/Depr(5y)65.79%
Cap/Sales(3y)1.83%
Cap/Sales(5y)1.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.35%
EPS 3Y22.17%
EPS 5Y-4.97%
EPS Q2Q%0%
EPS Next Y14.58%
EPS Next 2Y8.55%
EPS Next 3Y11.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y6.77%
Revenue growth 5Y-1.7%
Sales Q2Q%2.19%
Revenue Next Year-0.16%
Revenue Next 2Y1.01%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
EBIT growth 1Y32.49%
EBIT growth 3Y16.3%
EBIT growth 5Y-5.24%
EBIT Next Year65.95%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y259.84%
FCF growth 3Y123.28%
FCF growth 5Y39.34%
OCF growth 1Y587.65%
OCF growth 3Y68.26%
OCF growth 5Y18.66%