NYSE:SCS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with proven track record.


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


Market Performance


7 Day Return

-2.4%

NYSE:SCS

-3.0%

US Commercial Services

-1.6%

US Market


1 Year Return

5.8%

NYSE:SCS

2.3%

US Commercial Services

-3.0%

US Market

SCS outperformed the Commercial Services industry which returned 2.3% over the past year.

SCS outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

SCSIndustryMarket
7 Day-2.4%-3.0%-1.6%
30 Day-8.1%-3.8%-5.7%
90 Day-8.3%0.2%0.2%
1 Year9.5%5.8%6.2%2.3%-0.8%-3.0%
3 Year16.4%4.9%59.5%48.6%38.1%29.1%
5 Year14.6%-2.3%90.2%71.1%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Steelcase's share price is below the future cash flow value, and at a moderate discount (> 20%).

Steelcase's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Steelcase is good value based on earnings compared to the US Commercial Services industry average.

Steelcase is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Steelcase is poor value based on expected growth next year.


Price Based on Value of Assets

Steelcase is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Steelcase's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Steelcase's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

Steelcase's revenue growth is positive but not above the United States of America market average.

Steelcase's earnings growth is positive but not above the United States of America market average.

Steelcase's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Steelcase is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Steelcase performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Steelcase's year on year earnings growth rate has been positive over the past 5 years.

Steelcase's 1-year earnings growth exceeds its 5-year average (59.3% vs 1.5%)

Steelcase's earnings growth has exceeded the US Commercial Services industry average in the past year (59.3% vs -2.4%).


Return on Equity

Steelcase has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Steelcase used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Steelcase's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Steelcase's financial position?


Financial Position Analysis

Steelcase is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Steelcase's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Steelcase's level of debt (57.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (41.7% vs 57.1% today).

Debt is well covered by operating cash flow (36.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

4.34%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Steelcase's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Steelcase's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Steelcase's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Jim Keane (60yo)

5.4yrs

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

Jim's remuneration is higher than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.4yrs

Average Tenure

57yo

Average Age

The average tenure for the Steelcase management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.2yrs

Average Tenure

61yo

Average Age

The tenure for the Steelcase board of directors is about average.


Insider Trading

Steelcase individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$366,41915 Jul 19
David Sylvester
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP
Shares21,017
Max PriceUS$17.43
SellUS$1,744,50015 Jul 19
James Keane
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceUS$17.45
SellUS$86,50111 Jul 19
Sara Armbruster
EntityIndividual
Role
Head of Research
Vice President of Strategy of Research & Digital Transformation
Shares5,000
Max PriceUS$17.30
SellUS$342,16610 Jul 19
Lizbeth O'Shaughnessy
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares20,000
Max PriceUS$17.11
SellUS$17,48903 Jul 19
Jennifer Niemann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,020
Max PriceUS$17.15
SellUS$138,00003 May 19
James Ludwig
EntityIndividual
Shares8,000
Max PriceUS$17.25
SellUS$209,84501 May 19
Allan Smith
EntityIndividual
Role
Head of Marketing
Vice President of Global Marketing
Shares12,233
Max PriceUS$17.15
SellUS$26,91129 Mar 19
Jennifer Niemann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,832
Max PriceUS$14.69
SellUS$112,50027 Mar 19
Sara Armbruster
EntityIndividual
Role
Head of Research
Vice President of Strategy of Research & Digital Transformation
Shares7,500
Max PriceUS$15.00
SellUS$213,39807 Jan 19
Peter Wege
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,741
Max PriceUS$15.53
SellUS$285,23711 Oct 18
Robert Pew
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares16,291
Max PriceUS$17.51
SellUS$139,17501 Oct 18
James Ludwig
EntityIndividual
Shares7,500
Max PriceUS$18.56
SellUS$157,25001 Oct 18
Sara Armbruster
EntityIndividual
Role
Head of Research
Vice President of Strategy of Research & Digital Transformation
Shares8,500
Max PriceUS$18.50
SellUS$372,22628 Sep 18
Lizbeth O'Shaughnessy
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares20,000
Max PriceUS$18.61
SellUS$259,56026 Sep 18
Allan Smith
EntityIndividual
Role
Head of Marketing
Vice President of Global Marketing
Shares14,000
Max PriceUS$18.54
SellUS$36,16226 Sep 18
James Ludwig
EntityIndividual
Shares1,992
Max PriceUS$18.15
SellUS$156,75526 Sep 18
Guillaume Alvarez
EntityIndividual
Role
Senior Key Executive
Senior Vice President of EMEA
Shares8,300
Max PriceUS$18.89

Ownership Breakdown


Management Team

  • Jim Keane (60yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$6.44m
  • Sara Armbruster (48yo)

    Vice President of Strategy of Research & Digital Transformation

    • Tenure: 5.6yrs
    • Compensation: US$1.40m
  • Dave Sylvester (54yo)

    CFO & Senior VP

    • Tenure: 8.3yrs
    • Compensation: US$2.37m
  • Lizbeth O'Shaughnessy (57yo)

    Chief Administrative Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.57m
  • Mark Mossing (61yo)

    Corporate Controller & Chief Accounting Officer

    • Tenure: 11.3yrs
  • Guillaume Alvarez (59yo)

    Senior Vice President of EMEA

    • Tenure: 5.4yrs
  • Allan Smith (51yo)

    Vice President of Global Marketing

    • Tenure: 5.9yrs
    • Compensation: US$1.30m
  • Gale Moutrey (60yo)

    Vice President of Communications

    • Tenure: 5.4yrs
  • Bob Krestakos (57yo)

    Vice President of Global Operations

    • Tenure: 4.5yrs
    • Compensation: US$1.15m
  • Mike O'Meara

    Director of Investor Relations & Financial Planning and Analysis

    • Tenure: 0.0yrs

Board Members

  • Larry Blanford (65yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$220.00k
  • Jim Keane (60yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$6.44m
  • Rob Pew (68yo)

    Chair of the Board

    • Tenure: 16.2yrs
    • Compensation: US$300.00k
  • Peter Wege (70yo)

    Independent Director

    • Tenure: 40.6yrs
    • Compensation: US$200.00k
  • Kate Wolters (61yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$200.00k
  • Tim Brown (56yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$210.00k
  • Connie Duckworth (64yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$210.00k
  • Cathy Ross (61yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$220.00k
  • Jenny Niemann (50yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$200.00k
  • Todd Kelsey (54yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$205.00k

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$1.800b
  • Shares outstanding: 117.33m
  • 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 co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:46
End of Day Share Price2019/08/23 00:00
Earnings2019/05/24
Annual Earnings2019/02/22


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.