STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
NYSE:SCS - New York Stock Exchange, Inc. - US8581552036 - Common Stock - Currency: USD
Overall SCS gets a fundamental rating of 5 out of 10. We evaluated SCS against 84 industry peers in the Commercial Services & Supplies industry. SCS has an average financial health and profitability rating. SCS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SCS suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SCS was profitable.
SCS had a positive operating cash flow in the past year.
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
The Return On Assets of SCS (4.76%) is better than 67.86% of its industry peers.
With a decent Return On Equity value of 11.86%, SCS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
SCS has a better Return On Invested Capital (8.30%) than 69.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCS is significantly below the industry average of 10.07%.
The last Return On Invested Capital (8.30%) for SCS is above the 3 year average (3.63%), which is a sign of increasing profitability.
| 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's Profit Margin of 3.51% is fine compared to the rest of the industry. SCS outperforms 63.10% of its industry peers.
SCS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.00%, SCS is in line with its industry, outperforming 51.19% of the companies in the same industry.
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 52.38% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SCS is creating some value.
The number of shares outstanding for SCS has been increased compared to 1 year ago.
SCS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCS has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.98, SCS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
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 has a better Debt to FCF ratio (2.79) than 76.19% 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.
The Debt to Equity ratio of SCS (0.48) 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/WACC1.09
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.57 indicates that SCS should not have too much problems paying its short term obligations.
SCS's Current ratio of 1.57 is in line compared to the rest of the industry. SCS outperforms 59.52% of its industry peers.
A Quick Ratio of 1.21 indicates that SCS should not have too much problems paying its short term obligations.
SCS's Quick ratio of 1.21 is in line compared to the rest of the industry. SCS outperforms 44.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
SCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.35%, which is quite impressive.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
SCS shows a decrease in Revenue. In the last year, the revenue decreased by -1.03%.
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
Based on estimates for the next years, SCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.02% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.86, the valuation of SCS can be described as reasonable.
Based on the Price/Earnings ratio, SCS is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. SCS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.70, the valuation of SCS can be described as reasonable.
Based on the Price/Forward Earnings ratio, SCS is valued cheaper than 89.29% of the companies in the same industry.
SCS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued cheaper than 90.48% of the companies in the same industry.
86.90% of the companies in the same industry are more expensive than SCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.34 | ||
| EV/EBITDA | 4.85 |
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)0.75
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, SCS has a reasonable but not impressive dividend return.
SCS's Dividend Yield is rather good when compared to the industry average which is at 2.36. SCS pays more dividend than 89.29% of the companies in the same industry.
SCS's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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.
SCS has decreased its dividend recently.
Dividend Growth(5Y)-5.36%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SCS pays out 43.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.13%
EPS Next 2Y8.55%
EPS Next 3Y11.02%
11.73
+0.21 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0.06%
Ins Owners1.9%
Ins Owner Change1.61%
Market Cap1.33B
Analysts80
Price Target16.83 (43.48%)
Short Float %1.49%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)0%
EPS NQ rev (3m)-9.89%
EPS NY rev (1m)0%
EPS NY rev (3m)6.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.42 | ||
| P/FCF | 8.34 | ||
| P/OCF | 6.5 | ||
| P/B | 1.43 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)1.08
EY9.21%
EPS(NY)1.1
Fwd EY9.34%
FCF(TTM)1.41
FCFY11.99%
OCF(TTM)1.81
OCFY15.39%
SpS27.73
BVpS8.2
TBVpS5.08
PEG (NY)0.75
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
WACC7.61%
ROIC/WACC1.09
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%