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 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. SCS has a bad growth rate and is valued cheaply. This makes SCS very considerable 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.
Of the past 5 years SCS 4 years were profitable.
In multiple years SCS reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of SCS (4.76%) is better than 65.06% of its industry peers.
The Return On Equity of SCS (11.86%) is better than 69.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.30%, SCS is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCS is significantly below the industry average of 10.77%.
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's Profit Margin of 3.51% is fine compared to the rest of the industry. SCS outperforms 61.45% 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 6.00%, SCS is in line with its industry, outperforming 51.81% of the companies in the same industry.
SCS's Operating Margin has declined in the last couple of years.
SCS has a Gross Margin (33.27%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SCS is still creating some value.
SCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SCS has an Altman-Z score of 2.89. 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.
Looking at the Altman-Z score, with a value of 2.89, SCS is in the better half of the industry, outperforming 60.24% of the companies in the same industry.
The Debt to FCF ratio of SCS is 2.79, which is a good value as it means it would take SCS, 2.79 years of fcf income to pay off all of its debts.
SCS has a better Debt to FCF ratio (2.79) than 73.49% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that SCS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, SCS perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.12
WACC7.43%
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.
SCS has a worse Quick ratio (1.21) than 60.24% of its industry peers.
| 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 nice 19.35% over the past year.
The Earnings Per Share has been decreasing by -5.84% on average over the past years.
EPS 1Y (TTM)19.35%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%13.04%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.65%
3.2 Future
Based on estimates for the next years, SCS will show a small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-1.27%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
SCS is valuated reasonably with a Price/Earnings ratio of 8.79.
86.75% 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 28.29. SCS is valued rather cheaply when compared to this.
SCS is valuated reasonably with a Price/Forward Earnings ratio of 8.91.
89.16% of the companies in the same industry are more expensive than SCS, based on the Price/Forward Earnings ratio.
SCS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued cheaply inside the industry as 90.36% of the companies are valued more expensively.
85.54% 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 | 6.94 | ||
| EV/EBITDA | 4.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SCS is a good candidate for dividend investing.
SCS's Dividend Yield is rather good when compared to the industry average which is at 2.58. SCS pays more dividend than 89.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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 2Y7.07%
EPS Next 3YN/A
9.76
+0.05 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0%
Ins Owners1.9%
Ins Owner Change4.94%
Market Cap1.11B
Analysts80
Price Target16.83 (72.44%)
Short Float %1.98%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend0.42
Dividend Growth(5Y)-5.36%
DP43.13%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)6.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.35 | ||
| P/FCF | 6.94 | ||
| P/OCF | 5.41 | ||
| P/B | 1.19 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)1.11
EY11.37%
EPS(NY)1.1
Fwd EY11.23%
FCF(TTM)1.41
FCFY14.42%
OCF(TTM)1.81
OCFY18.5%
SpS27.73
BVpS8.2
TBVpS5.08
PEG (NY)N/A
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 | 2.89 |
F-Score7
WACC7.43%
ROIC/WACC1.12
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)19.35%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%13.04%
EPS Next Y-1.27%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.65%
Revenue Next Year3.85%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y32.49%
EBIT growth 3Y16.3%
EBIT growth 5Y-5.24%
EBIT Next Year65.95%
EBIT Next 3Y24.71%
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%