STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
NYSE:SCS - New York Stock Exchange, Inc. - US8581552036 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SCS. SCS was compared to 83 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SCS. These ratings would make SCS suitable for value investing!
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.
SCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SCS has a Return On Assets of 5.01%. This is in the better half of the industry: SCS outperforms 65.06% of its industry peers.
The Return On Equity of SCS (12.27%) is better than 69.88% of its industry peers.
The Return On Invested Capital of SCS (8.42%) is better than 66.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCS is significantly below the industry average of 11.67%.
The 3 year average ROIC (6.65%) for SCS is below the current ROIC(8.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 12.27% | ||
| ROIC | 8.42% |
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 3.69% is in line compared to the rest of the industry. SCS outperforms 57.83% 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 5.33%, SCS is in line with its industry, outperforming 48.19% of the companies in the same industry.
SCS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.38%, SCS perfoms like the industry average, outperforming 51.81% of the companies in the same 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 | 5.33% | ||
| PM (TTM) | 3.69% | ||
| GM | 33.38% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SCS is creating some value.
SCS has less shares outstanding than it did 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 2.92. This is not the best score and indicates that SCS is in the grey zone with still only limited risk for bankruptcy at the moment.
SCS has a Altman-Z score (2.92) which is in line with its industry peers.
SCS has a debt to FCF ratio of 4.41. This is a neutral value as SCS would need 4.41 years to pay back of all of its debts.
SCS has a Debt to FCF ratio of 4.41. This is in the better half of the industry: SCS outperforms 68.67% of its industry peers.
SCS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, SCS perfoms like the industry average, outperforming 50.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.05
WACC8.05%
2.3 Liquidity
SCS has a Current Ratio of 1.54. 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 (1.54) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that SCS should not have too much problems paying its short term obligations.
The Quick ratio of SCS (1.17) is worse than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.00% over the past year.
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.
SCS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.20%.
SCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.19% yearly.
EPS 1Y (TTM)15%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%25%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%7.11%
3.2 Future
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
SCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y-3.25%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y3.74%
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.
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 9.21, the valuation of SCS can be described as reasonable.
SCS's Price/Earnings ratio is rather cheap when compared to the industry. SCS is cheaper than 87.95% of the companies in the same industry.
SCS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.21 indicates a reasonable valuation of SCS.
SCS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCS is cheaper than 92.77% of the companies in the same industry.
SCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 91.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SCS is valued cheaply inside the industry as 83.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, SCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.44, SCS pays a better dividend. On top of this SCS pays more dividend than 89.16% of the companies listed in the same industry.
SCS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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.
SCS has decreased its dividend recently.
Dividend Growth(5Y)-6.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SCS pays out 40.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.75%
EPS Next 2Y7.78%
EPS Next 3YN/A
10.59
-0.32 (-2.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.08%
Inst Owner Change-0.08%
Ins Owners2.29%
Ins Owner Change9.41%
Market Cap1.21B
Analysts80
Price Target16.83 (58.92%)
Short Float %3.11%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP40.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.29%
Min EPS beat(2)25.57%
Max EPS beat(2)35.01%
EPS beat(4)4
Avg EPS beat(4)30.67%
Min EPS beat(4)3.66%
Max EPS beat(4)58.42%
EPS beat(8)8
Avg EPS beat(8)104.09%
EPS beat(12)12
Avg EPS beat(12)87.47%
EPS beat(16)13
Avg EPS beat(16)28.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)25.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.38 | ||
| P/FCF | 11.97 | ||
| P/OCF | 8.18 | ||
| P/B | 1.28 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)1.15
EY10.86%
EPS(NY)1.29
Fwd EY12.18%
FCF(TTM)0.88
FCFY8.35%
OCF(TTM)1.3
OCFY12.23%
SpS27.62
BVpS8.3
TBVpS5.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 12.27% | ||
| ROCE | 10.17% | ||
| ROIC | 8.42% | ||
| ROICexc | 10.99% | ||
| ROICexgc | 15.16% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.69% | ||
| GM | 33.38% | ||
| FCFM | 3.2% |
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 Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.41 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 58.29% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 7.31 | ||
| Cash Conversion | 59.47% | ||
| Profit Quality | 86.82% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.92 |
F-Score7
WACC8.05%
ROIC/WACC1.05
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)15%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%25%
EPS Next Y-3.25%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%7.11%
Revenue Next Year3.38%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.38%
EBIT growth 3Y103.3%
EBIT growth 5Y-8.09%
EBIT Next Year55.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.24%
FCF growth 3YN/A
FCF growth 5Y-18.81%
OCF growth 1Y-51.89%
OCF growth 3YN/A
OCF growth 5Y-16.27%