STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
USA - NYSE:SCS - US8581552036 - Common Stock
16.53 USD
-0.05 (-0.3%)
16.2 USD
-0.33 (-2%)
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 only an average score on both its financial health and profitability. SCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SCS was profitable.
In the past year SCS had a positive cash flow from operations.
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
SCS has a Return On Assets of 3.92%. This is in the better half of the industry: SCS outperforms 67.86% of its industry peers.
With a decent Return On Equity value of 9.07%, SCS is doing good in the industry, outperforming 67.86% of the companies in the same industry.
The Return On Invested Capital of SCS (7.24%) is better than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCS is below the industry average of 10.17%.
The 3 year average ROIC (6.65%) for SCS is below the current ROIC(7.24%), indicating increased profibility in the last year.
| 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's Profit Margin of 2.83% is in line compared to the rest of the industry. SCS outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of SCS has declined.
SCS has a Operating Margin (4.68%) which is in line with its industry peers.
SCS's Operating Margin has declined in the last couple of years.
SCS has a Gross Margin (33.60%) which is comparable to the rest of the industry.
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 3.26. This indicates that SCS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SCS (3.26) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that SCS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, SCS is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC0.91
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.66 indicates that SCS should not have too much problems paying its short term obligations.
SCS has a Current ratio (1.66) which is in line with 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 has a Quick ratio of 1.18. This is in the lower half of the industry: SCS underperforms 60.71% 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.
The Earnings Per Share has been decreasing by -5.84% on average over the past years.
Looking at the last year, SCS shows a small growth in Revenue. The Revenue has grown by 3.92% in the last year.
Measured over the past years, SCS shows a decrease in Revenue. The Revenue has been decreasing by -3.19% on average per year.
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 7.29% yearly.
Based on estimates for the next years, SCS will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y-2.64%
EPS Next 2Y7.29%
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 13.66, the valuation of SCS can be described as correct.
Based on the Price/Earnings ratio, SCS is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of SCS to the average of the S&P500 Index (27.53), we can say SCS is valued rather cheaply.
The Price/Forward Earnings ratio is 12.94, which indicates a correct valuation of SCS.
Based on the Price/Forward Earnings ratio, SCS is valued a bit cheaper than the industry average as 79.76% of the companies are valued more expensively.
SCS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued a bit cheaper than the industry average as 72.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 2.42%.
SCS's Dividend Yield is rather good when compared to the industry average which is at 2.41. SCS pays more dividend than 86.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of SCS decreases each year by -6.70%.
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)-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 2Y7.29%
EPS Next 3YN/A
16.53
-0.05 (-0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.56%
Inst Owner Change-0.08%
Ins Owners3.67%
Ins Owner Change24.62%
Market Cap1.90B
Analysts76.67
Price Target16.58 (0.3%)
Short Float %2.38%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP51.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-1.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.94 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | 109.63 | ||
| P/B | 1.87 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)1.21
EY7.32%
EPS(NY)1.28
Fwd EY7.73%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)0.15
OCFY0.91%
SpS28.4
BVpS8.86
TBVpS5.84
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y119.71%
ROICexcg 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 | 3.26 |
F-Score7
WACC7.97%
ROIC/WACC0.91
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 Y-2.64%
EPS Next 2Y7.29%
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 Year51.82%
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%