STEELCASE INC-CL A (SCS)

US8581552036 - Common Stock

11.94  +0.11 (+0.93%)

After market: 11.94 0 (0%)

Fundamental Rating

5

Overall SCS gets a fundamental rating of 5 out of 10. We evaluated SCS against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of SCS get a neutral evaluation. Nothing too spectacular is happening here. SCS is not valued too expensively and it also shows a decent growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year SCS was profitable.
SCS had a positive operating cash flow in the past year.
Each year in the past 5 years SCS has 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 3.49%. This is in the better half of the industry: SCS outperforms 71.08% of its industry peers.
The Return On Equity of SCS (8.79%) is better than 69.88% of its industry peers.
SCS has a better Return On Invested Capital (6.20%) than 60.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCS is significantly below the industry average of 9.39%.
The 3 year average ROIC (3.63%) for SCS is below the current ROIC(6.20%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.49%
ROE 8.79%
ROIC 6.2%
ROA(3y)1.78%
ROA(5y)2.81%
ROE(3y)4.57%
ROE(5y)7.31%
ROIC(3y)3.63%
ROIC(5y)4.85%

1.3 Margins

With a decent Profit Margin value of 2.47%, SCS is doing good in the industry, outperforming 60.24% of the companies in the same industry.
SCS's Profit Margin has declined in the last couple of years.
The Operating Margin of SCS (4.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCS has declined.
The Gross Margin of SCS (32.18%) is comparable to the rest of the industry.
SCS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.44%
PM (TTM) 2.47%
GM 32.18%
OM growth 3Y8.93%
OM growth 5Y-3.59%
PM growth 3Y37.74%
PM growth 5Y-6.47%
GM growth 3Y2.61%
GM growth 5Y0.37%

5

2. Health

2.1 Basic Checks

SCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SCS has been increased compared to 1 year ago.
Compared to 5 years ago, SCS has less shares outstanding
SCS has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.99 indicates that SCS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SCS has a Altman-Z score of 2.99. This is in the better half of the industry: SCS outperforms 69.88% of its industry peers.
SCS has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
The Debt to FCF ratio of SCS (1.71) is better than 77.11% of its industry peers.
SCS has a Debt/Equity ratio of 0.50. This is a neutral value indicating SCS is somewhat dependend on debt financing.
SCS has a better Debt to Equity ratio (0.50) than 60.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.71
Altman-Z 2.99
ROIC/WACC0.79
WACC7.83%

2.3 Liquidity

A Current Ratio of 1.58 indicates that SCS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.58, SCS perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
SCS has a Quick Ratio of 1.20. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.20, SCS is in line with its industry, outperforming 46.99% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 1.2

4

3. Growth

3.1 Past

SCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.09%, which is quite impressive.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
The Revenue has decreased by -2.26% in the past year.
Measured over the past years, SCS shows a decrease in Revenue. The Revenue has been decreasing by -1.70% on average per year.
EPS 1Y (TTM)69.09%
EPS 3Y22.17%
EPS 5Y-4.97%
EPS growth Q2Q21.05%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y6.77%
Revenue growth 5Y-1.7%
Revenue growth Q2Q-3.31%

3.2 Future

The Earnings Per Share is expected to grow by 12.47% on average over the next years. This is quite good.
Based on estimates for the next years, SCS will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
EPS Next Y-1.17%
EPS Next 2Y7.67%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year3.19%
Revenue Next 2Y3.26%
Revenue Next 3Y4.24%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.84 indicates a correct valuation of SCS.
Based on the Price/Earnings ratio, SCS is valued cheaper than 85.54% of the companies in the same industry.
SCS is valuated rather cheaply when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
SCS is valuated correctly with a Price/Forward Earnings ratio of 12.99.
84.34% of the companies in the same industry are more expensive than SCS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, SCS is valued a bit cheaper.
Industry RankSector Rank
PE 12.84
Fwd PE 12.99

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 85.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SCS is valued cheaper than 95.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.21
EV/EBITDA 6.66

4.3 Compensation for Growth

A more expensive valuation may be justified as SCS's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.67%
EPS Next 3Y12.47%

4

5. Dividend

5.1 Amount

SCS has a Yearly Dividend Yield of 3.38%.
Compared to an average industry Dividend Yield of 2.42, SCS pays a better dividend. On top of this SCS pays more dividend than 87.95% of the companies listed in the same industry.
SCS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 3.38%

5.2 History

The dividend of SCS decreases each year by -5.36%.
SCS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.36%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

SCS pays out 61.03% of its income as dividend. This is not a sustainable payout ratio.
DP61.03%
EPS Next 2Y7.67%
EPS Next 3Y12.47%

STEELCASE INC-CL A

NYSE:SCS (4/19/2024, 7:15:25 PM)

After market: 11.94 0 (0%)

11.94

+0.11 (+0.93%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.36B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.38%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 12.84
Fwd PE 12.99
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.49%
ROE 8.79%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.44%
PM (TTM) 2.47%
GM 32.18%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.41
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.58
Quick Ratio 1.2
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)69.09%
EPS 3Y22.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y6.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y