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SCS

SteelcaseNYSE:SCS Stock Report

Market Cap

US$1.4b

7D

10.3%

1Y

-10.8%

Updated

09 Dec, 2021

Data

Company Financials +
SCS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends4/6

SCS Stock Overview

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

Steelcase Competitors

MillerKnoll

NasdaqGS:MLKN

US$3.1b

HNI

NYSE:HNI

US$1.9b

Pitney Bowes

NYSE:PBI

US$1.2b

Interface

NasdaqGS:TILE

US$936.0m

Price History & Performance

Summary of all time highs, changes and price drops for Steelcase
Historical stock prices
Current Share PriceUS$12.12
52 Week HighUS$16.85
52 Week LowUS$10.96
Beta1.34
1 Month Change-3.04%
3 Month Change-8.87%
1 Year Change-10.75%
3 Year Change-18.44%
5 Year Change-22.56%
Change since IPO-63.96%

Recent News & Updates

Nov 25

Steelcase: When Returns Justify Trying To Catch A Falling Knife

Steelcase had a robust operating history in the years leading up to the COVID-19 pandemic, but the crisis proved to be painful for shareholders. This year, the picture is continuing to show signs of decline, but this doesn't mean the company is a bad prospect. Although uncertainty clouds the picture today, shares of the business are incredibly cheap if we assume an eventual turnaround in the business. The potential upside could well be worth the risk of buying in at this time.

Oct 21
Steelcase (NYSE:SCS) Has A Somewhat Strained Balance Sheet

Steelcase (NYSE:SCS) Has A Somewhat Strained Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 26
Steelcase (NYSE:SCS) Is Paying Out A Larger Dividend Than Last Year

Steelcase (NYSE:SCS) Is Paying Out A Larger Dividend Than Last Year

Steelcase Inc. ( NYSE:SCS ) has announced that it will be increasing its dividend on the 15th of October to US$0.14...

Shareholder Returns

SCSUS Commercial ServicesUS Market
7D10.3%3.8%4.0%
1Y-10.8%24.2%21.7%

Return vs Industry: SCS underperformed the US Commercial Services industry which returned 24.2% over the past year.

Return vs Market: SCS underperformed the US Market which returned 21.7% over the past year.

Price Volatility

Is SCS's price volatile compared to industry and market?
SCS volatility
SCS Average Weekly Movement4.3%
Commercial Services Industry Average Movement5.8%
Market Average Movement6.3%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: SCS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SCS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191211,000Sara Armbrusterhttps://www.steelcase.com

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, EMEA, and Other segments. The company’s furniture portfolio includes panels, fence and beam-based furniture systems, storage products, fixed and height-adjustable desks, benches, and tables, as well as complementary products, including worktools and screens.

Steelcase Fundamentals Summary

How do Steelcase's earnings and revenue compare to its market cap?
SCS fundamental statistics
Market CapUS$1.37b
Earnings (TTM)US$5.00m
Revenue (TTM)US$2.58b

275.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCS income statement (TTM)
RevenueUS$2.58b
Cost of RevenueUS$1.84b
Gross ProfitUS$735.70m
ExpensesUS$730.70m
EarningsUS$5.00m

Last Reported Earnings

Aug 27, 2021

Next Earnings Date

Dec 16, 2021

Earnings per share (EPS)0.044
Gross Margin28.56%
Net Profit Margin0.19%
Debt/Equity Ratio53.8%

How did SCS perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

1,024%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCS ($12.12) is trading below our estimate of fair value ($50.16)

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 (275x) compared to the US Commercial Services industry average (28x).

PE vs Market: SCS is poor value based on its PE Ratio (275x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: SCS is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: SCS is good value based on its PB Ratio (1.5x) compared to the US Commercial Services industry average (2.2x).


Future Growth

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

58.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCS's forecast earnings growth (58.3% per year) is above the savings rate (2%).

Earnings vs Market: SCS's earnings (58.3% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: SCS's revenue (7.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SCS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SCS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Steelcase performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCS has a large one-off loss of $6.3M impacting its August 27 2021 financial results.

Growing Profit Margin: SCS's current net profit margins (0.2%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: SCS's earnings have declined by 13.2% 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 (-96.3%) over the past year, making it difficult to compare to the Commercial Services industry average (35.3%).


Return on Equity

High ROE: SCS's Return on Equity (0.6%) 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 ($547.7M).

Long Term Liabilities: SCS's short term assets ($1.0B) exceed its long term liabilities ($864.5M).


Debt to Equity History and Analysis

Debt Level: SCS's net debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: SCS's debt to equity ratio has increased from 39.9% to 53.8% over the past 5 years.

Debt Coverage: SCS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SCS's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCS's dividend (4.79%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: SCS's dividend (4.79%) is in the top 25% of dividend payers in the US market (3.56%)


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 (1023.5%), 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 (70.9% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Sara Armbruster (50 yo)

7.92yrs

Tenure

US$1,339,548

Compensation

Ms. Sara E. Armbruster has been Executive Vice President and Director of at Steelcase Inc. since April 2021. She had been Vice President of Strategy, Research and Digital Transformation at Steelcase, Inc....


CEO Compensation Analysis

Compensation vs Market: Sara's total compensation ($USD1.34M) is below average for companies of similar size in the US market ($USD3.62M).

Compensation vs Earnings: Sara's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SCS's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: SCS's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$1.375b
  • Shares outstanding: 113.42m
  • Website: https://www.steelcase.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/09 00:00
End of Day Share Price2021/12/08 00:00
Earnings2021/08/27
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.