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Market Cap

US$1.7b

Last Updated

2021/05/16 04:20 UTC

Data Sources

Company Financials +

Executive Summary

Steelcase Inc. manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products in the United States and internationally. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Steelcase's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SCS's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

SCS

-0.6%

US Commercial Services

-1.7%

US Market


1 Year Return

48.4%

SCS

51.2%

US Commercial Services

50.8%

US Market

Return vs Industry: SCS underperformed the US Commercial Services industry which returned 51.2% over the past year.

Return vs Market: SCS underperformed the US Market which returned 50.8% over the past year.


Shareholder returns

SCSIndustryMarket
7 Day0.3%-0.6%-1.7%
30 Day-1.3%3.7%-1.2%
90 Day4.6%10.5%0.4%
1 Year53.4%48.4%53.1%51.2%53.3%50.8%
3 Year12.0%1.2%63.5%52.9%61.5%51.4%
5 Year13.2%-4.4%131.8%107.2%125.9%100.7%

Long-Term Price Volatility Vs. Market

How volatile is Steelcase's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Steelcase undervalued compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCS ($14.42) is trading below our estimate of fair value ($28.52)

Significantly Below Fair Value: SCS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCS is poor value based on its PE Ratio (65x) compared to the US Commercial Services industry average (35.5x).

PE vs Market: SCS is poor value based on its PE Ratio (65x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SCS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SCS is good value based on its PB Ratio (1.7x) compared to the US Commercial Services industry average (2.7x).


Future Growth

How is Steelcase forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCS's forecast earnings growth (37.5% per year) is above the savings rate (2%).

Earnings vs Market: SCS's earnings (37.5% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SCS's revenue (5.7% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: SCS's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCS's Return on Equity is forecast to be low in 3 years time (7.2%).


Past Performance

How has Steelcase performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCS has a large one-off loss of $36.7M impacting its February 26 2021 financial results.

Growing Profit Margin: SCS's current net profit margins (1%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: SCS's earnings have declined by 7.5% per year over the past 5 years.

Accelerating Growth: SCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCS had negative earnings growth (-86.9%) over the past year, making it difficult to compare to the Commercial Services industry average (-3.5%).


Return on Equity

High ROE: SCS's Return on Equity (2.7%) is considered low.


Financial Health

How is Steelcase's financial position?


Financial Position Analysis

Short Term Liabilities: SCS's short term assets ($1.0B) exceed its short term liabilities ($515.0M).

Long Term Liabilities: SCS's short term assets ($1.0B) exceed its long term liabilities ($878.5M).


Debt to Equity History and Analysis

Debt Level: SCS's debt to equity ratio (50.4%) is considered high.

Reducing Debt: SCS's debt to equity ratio has increased from 40.6% to 50.4% over the past 5 years.

Debt Coverage: SCS's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: SCS's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

What is Steelcase current dividend yield, its reliability and sustainability?

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCS's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: SCS's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: SCS's dividend payments have been volatile in the past 10 years.

Growing Dividend: SCS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (166.7%), SCS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCS's dividends in 3 years are forecast to be covered by earnings (55.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Jim Keane (61 yo)

7.17yrs

Tenure

US$7,785,188

Compensation

Mr. James P. Keane, also known as Jim, had been the Chief Executive Officer of Steelcase Inc. since March 2014. Mr. Keane serves as the President of Steelcase Incorporated from March 2014. He served as Chi...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD7.79M) is above average for companies of similar size in the US market ($USD3.77M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: SCS's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: SCS's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SCS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Steelcase Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Steelcase Inc.
  • Ticker: SCS
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$1.668b
  • Shares outstanding: 115.66m
  • Website: https://www.steelcase.com

Number of Employees


Location

  • Steelcase Inc.
  • 901 44th Street SE
  • Grand Rapids
  • Michigan
  • 49508
  • United States

Listings


Biography

Steelcase Inc. manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products in the United States and internationally. It operates through Americas, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 04:20
End of Day Share Price2021/05/14 00:00
Earnings2021/02/26
Annual Earnings2021/02/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.