NYSE:SCS

Stock Analysis Report

Executive Summary

Steelcase Inc. manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products.


Snowflake Analysis

Outstanding track record with adequate balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.1%

SCS

9.4%

US Commercial Services

9.4%

US Market


1 Year Return

-34.3%

SCS

-11.6%

US Commercial Services

-6.8%

US Market

Return vs Industry: SCS underperformed the US Commercial Services industry which returned -11.6% over the past year.

Return vs Market: SCS underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

SCSIndustryMarket
7 Day27.1%9.4%9.4%
30 Day-22.1%-14.8%-3.9%
90 Day-45.6%-21.1%-16.5%
1 Year-32.2%-34.3%-8.5%-11.6%-4.8%-6.8%
3 Year-28.0%-35.1%23.8%15.8%23.4%15.2%
5 Year-32.7%-42.9%46.7%31.1%41.3%25.7%

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?

6.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCS ($10.45) is trading above our estimate of fair value ($5.47)

Significantly Below Fair Value: SCS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCS is good value based on its PE Ratio (6.3x) compared to the Commercial Services industry average (22.8x).

PE vs Market: SCS is good value based on its PE Ratio (6.3x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: SCS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SCS is overvalued based on its PB Ratio (1.3x) compared to the US Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is Steelcase forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-81.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCS's earnings are forecast to decline over the next 3 years (-81.2% per year).

Earnings vs Market: SCS's earnings are forecast to decline over the next 3 years (-81.2% per year).

High Growth Earnings: SCS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SCS's revenue is expected to decline over the next 3 years (-10.4% per year).

High Growth Revenue: SCS's revenue is forecast to decline over the next 3 years (-10.4% 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 (5.4%).


Next Steps

Past Performance

How has Steelcase performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCS has high quality earnings.

Growing Profit Margin: SCS's current net profit margins (5.4%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: SCS's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: SCS's earnings growth over the past year (61.6%) exceeds its 5-year average (4% per year).

Earnings vs Industry: SCS earnings growth over the past year (61.6%) exceeded the Commercial Services industry 2.5%.


Return on Equity

High ROE: SCS's Return on Equity (20.6%) is considered high.


Next Steps

Financial Health

How is Steelcase's financial position?


Financial Position Analysis

Short Term Liabilities: SCS's short term assets ($1.2B) exceed its short term liabilities ($690.9M).

Long Term Liabilities: SCS's short term assets ($1.2B) exceed its long term liabilities ($904.1M).


Debt to Equity History and Analysis

Debt Level: SCS's debt to equity ratio (49.9%) is considered high.

Reducing Debt: SCS's debt to equity ratio has increased from 42.5% to 49.9% over the past 5 years.

Debt Coverage: SCS's debt is well covered by operating cash flow (74.5%).

Interest Coverage: SCS's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCS's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: SCS's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (5.12%).


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 reasonably low payout ratio (34.7%), SCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCS's dividends in 3 years are forecast to be covered by earnings (68.3% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Jim Keane (60yo)

6.08s

Tenure

US$6,439,373

Compensation

Mr. James P. Keane, also known as Jim, has been the Chief Executive Officer of Steelcase Inc. since March 2014. Mr. Keane served as the President of Steelcase Inc. from April 22, 2013 to March 2014. He ser ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD6.44M) is above average for companies of similar size in the US market ($USD4.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Keane
President6.08yrsUS$6.44m0.70% $8.6m
David Sylvester
CFO & Senior VP9yrsUS$2.37m0.35% $4.3m
Sara Armbruster
Vice President of Strategy of Research & Digital Transformation6.25yrsUS$1.40m0.042% $514.9k
Lizbeth O'Shaughnessy
Chief Administrative Officer5.83yrsUS$1.57m0.18% $2.3m
Allan Smith
Vice President of Global Marketing6.58yrsUS$1.30m0.029% $349.2k
Robert Krestakos
Vice President of Global Operations5.17yrsUS$1.15m0.035% $434.5k
Mark Mossing
Corporate Controller & Chief Accounting Officer12yrsno datano data
Michael O'Meara
Director of Investor Relations & Financial Planning and Analysisno datano datano data
Gale Moutrey
Vice President of Communications6.08yrsno datano data
Guillaume Alvarez
Senior Vice President of EMEA6.08yrsno data0.053% $646.6k

6.1yrs

Average Tenure

57yo

Average Age

Experienced Management: SCS's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Keane
President6.08yrsUS$6.44m0.70% $8.6m
Lawrence Blanford
Independent Director7.58yrsUS$220.00kno data
Robert Pew
Chair of the Board16.83yrsUS$300.00k4.34% $53.2m
Peter Wege
Independent Director41.25yrsUS$200.00k0.19% $2.4m
Kate Wolters
Independent Director19.25yrsUS$200.00k5.05% $61.8m
Timothy C. Brown
Independent Director3.33yrsUS$210.00k0.00023% $2.8k
Connie Duckworth
Independent Director10.08yrsUS$210.00k0.058% $710.1k
Cathy Ross
Independent Director14.08yrsUS$220.00k0.0031% $37.7k
Jennifer Niemann
Director2.75yrsUS$200.00k0.54% $6.6m
Todd Kelsey
Independent Director3.08yrsUS$205.00kno data

8.8yrs

Average Tenure

61yo

Average Age

Experienced Board: SCS's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 2.5%.


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$1.225b
  • Shares outstanding: 117.20m
  • Website: https://www.steelcase.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCSNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 1998
GJBDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 1998

Biography

Steelcase Inc. manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products. It operates through Americas, EMEA, and Other Category segments. The company’s furniture portfolio includes panel, fence and beam-based furniture systems, storage products, fixed and height-adjustable desks, benches, and tables, as well as complementary products, including worktools. Its seating products comprise ergonomic task chairs; seating for collaborative or casual settings; and specialty seating for specific vertical markets, such as healthcare and education. The company’s interior architectural products include full and partial height walls and architectural pods. It also provides textiles, wall coverings, and surface imaging solutions for architects and designers; and ceramic steel surfaces for use in various applications, including static whiteboards and chalkboards through third party fabricators and distributors, as well as workplace strategy consulting, data-driven space measurement, lease origination, furniture and asset management, and hosted event services. The company markets and sells its products to corporate, government, healthcare, education, and retail customers under the Steelcase, Coalesse, Turnstone, Smith System, AMQ, Orangebox, Designtex, and PolyVision brands. It distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. The company was founded in 1912 and is headquartered in Grand Rapids, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:12
End of Day Share Price2020/04/09 00:00
Earnings2020/02/28
Annual Earnings2020/02/28


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.