Steelcase Inc (SCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCS - US8581552036 - Common Stock
16.14 USD
+0.02 (+0.12%)
16.1596 USD
+0.02 (+0.12%)
SCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. SCS has only an average score on both its financial health and profitability. SCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year SCS was profitable.
- SCS had a positive operating cash flow in the past year.
- In the past 5 years SCS has always been profitable.
- SCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- SCS has a Return On Assets of 3.92%. This is in the better half of the industry: SCS outperforms 69.14% of its industry peers.
- SCS has a Return On Equity of 9.07%. This is in the better half of the industry: SCS outperforms 69.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.24%, SCS is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
- SCS had an Average Return On Invested Capital over the past 3 years of 6.65%. This is below the industry average of 10.58%.
- The 3 year average ROIC (6.65%) for SCS is below the current ROIC(7.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 9.07% | ||
| ROIC | 7.24% |
ROA(3y)3.35%
ROA(5y)2.26%
ROE(3y)8.39%
ROE(5y)5.66%
ROIC(3y)6.65%
ROIC(5y)4.99%
1.3 Margins
- The Profit Margin of SCS (2.83%) is better than 60.49% of its industry peers.
- SCS's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 4.68%, SCS perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCS has declined.
- The Gross Margin of SCS (33.60%) 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 | 4.68% | ||
| PM (TTM) | 2.83% | ||
| GM | 33.6% |
OM growth 3Y94.51%
OM growth 5Y-5.06%
PM growth 3Y197.03%
PM growth 5Y-6.86%
GM growth 3Y6.72%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCS is destroying value.
- The number of shares outstanding for SCS has been reduced compared to 1 year ago.
- SCS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SCS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.24 indicates that SCS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.24, SCS is in the better half of the industry, outperforming 67.90% of the companies in the same industry.
- SCS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.44, SCS is in line with its industry, outperforming 54.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.24 |
ROIC/WACC0.89
WACC8.09%
2.3 Liquidity
- SCS has a Current Ratio of 1.66. 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 of 1.66. This is in the better half of the industry: SCS outperforms 60.49% of its industry peers.
- A Quick Ratio of 1.18 indicates that SCS should not have too much problems paying its short term obligations.
- SCS has a Quick ratio of 1.18. This is comparable to the rest of the industry: SCS outperforms 43.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- SCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.04%, which is quite good.
- The Earnings Per Share has been decreasing by -5.84% on average over the past years.
- The Revenue has been growing slightly by 3.92% in the past year.
- Measured over the past years, SCS shows a decrease in Revenue. The Revenue has been decreasing by -3.19% on average per year.
EPS 1Y (TTM)12.04%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%15.38%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%4.83%
3.2 Future
- SCS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
- SCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y2.36%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.26%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue 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
- A Price/Earnings ratio of 13.34 indicates a correct valuation of SCS.
- Based on the Price/Earnings ratio, SCS is valued cheaper than 81.48% of the companies in the same industry.
- SCS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 12.68, SCS is valued correctly.
- 82.72% 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 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCS is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.64
PEG (5Y)N/A
EPS Next 2Y7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.48%, SCS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.82, SCS pays a better dividend. On top of this SCS pays more dividend than 86.42% of the companies listed in the same industry.
- SCS's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
- The dividend of SCS decreases each year by -6.70%.
- SCS has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of SCS decreased recently.
Dividend Growth(5Y)-6.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 51.74% of the earnings are spent on dividend by SCS. This is a bit on the high side, but may be sustainable.
DP51.74%
EPS Next 2Y7.07%
EPS Next 3YN/A
Steelcase Inc / SCS FAQ
What is the ChartMill fundamental rating of Steelcase Inc (SCS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SCS.
Can you provide the valuation status for Steelcase Inc?
ChartMill assigns a valuation rating of 4 / 10 to Steelcase Inc (SCS). This can be considered as Fairly Valued.
How profitable is Steelcase Inc (SCS) stock?
Steelcase Inc (SCS) has a profitability rating of 5 / 10.
What are the PE and PB ratios of Steelcase Inc (SCS) stock?
The Price/Earnings (PE) ratio for Steelcase Inc (SCS) is 13.34 and the Price/Book (PB) ratio is 1.82.
What is the earnings growth outlook for Steelcase Inc?
The Earnings per Share (EPS) of Steelcase Inc (SCS) is expected to grow by 2.36% in the next year.