STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
NYSE:SCS - New York Stock Exchange, Inc. - US8581552036 - Common Stock - Currency: USD
SCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes SCS very considerable for value investing!
1. Profitability
1.1 Basic Checks
SCS had positive earnings in the past year.
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's Return On Assets of 5.01% is fine compared to the rest of the industry. SCS outperforms 65.06% of its industry peers.
SCS's Return On Equity of 12.27% is fine compared to the rest of the industry. SCS outperforms 69.88% of its industry peers.
The Return On Invested Capital of SCS (8.42%) is better than 67.47% of its industry peers.
SCS had an Average Return On Invested Capital over the past 3 years of 6.65%. This is below the industry average of 10.89%.
The 3 year average ROIC (6.65%) for SCS is below the current ROIC(8.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 12.27% | ||
| ROIC | 8.42% |
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
SCS has a better Profit Margin (3.69%) than 61.45% of its industry peers.
SCS's Profit Margin has declined in the last couple of years.
SCS's Operating Margin of 5.33% is in line compared to the rest of the industry. SCS outperforms 48.19% of its industry peers.
In the last couple of years the Operating Margin of SCS has declined.
SCS has a Gross Margin (33.38%) which is in line with its industry peers.
SCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.69% | ||
| GM | 33.38% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SCS is creating some value.
SCS has less shares outstanding than it did 1 year ago.
SCS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCS has an improved debt to assets ratio.
2.2 Solvency
SCS has an Altman-Z score of 2.87. This is not the best score and indicates that SCS is in the grey zone with still only limited risk for bankruptcy at the moment.
SCS has a Altman-Z score of 2.87. This is in the better half of the industry: SCS outperforms 60.24% of its industry peers.
The Debt to FCF ratio of SCS is 4.41, which is a neutral value as it means it would take SCS, 4.41 years of fcf income to pay off all of its debts.
SCS has a Debt to FCF ratio of 4.41. This is in the better half of the industry: SCS outperforms 71.08% of its industry peers.
SCS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
SCS's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. SCS outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.05
WACC8%
2.3 Liquidity
SCS has a Current Ratio of 1.54. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.54, SCS perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that SCS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, SCS is doing worse than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
SCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.35%, 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 0.20% 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)19.35%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%13.04%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%1.65%
3.2 Future
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
Based on estimates for the next years, SCS will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-3.25%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y3.74%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SCS is valuated reasonably with a Price/Earnings ratio of 9.14.
Based on the Price/Earnings ratio, SCS is valued cheaper than 85.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SCS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.45, the valuation of SCS can be described as reasonable.
SCS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SCS is cheaper than 89.16% of the companies in the same industry.
SCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued cheaper than 91.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCS is valued cheaper than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 3.81%.
SCS's Dividend Yield is rather good when compared to the industry average which is at 2.47. SCS pays more dividend than 89.16% of the companies in the same industry.
SCS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of SCS decreases each year by -6.70%.
SCS has been paying a dividend for at least 10 years, so it has a reliable track record.
SCS has decreased its dividend recently.
Dividend Growth(5Y)-6.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SCS pays out 40.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.75%
EPS Next 2Y7.78%
EPS Next 3YN/A
10.15
+0.14 (+1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change4.83%
Ins Owners1.9%
Ins Owner Change9.36%
Market Cap1.16B
Analysts80
Price Target16.83 (65.81%)
Short Float %2.76%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP40.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.29%
Min EPS beat(2)25.57%
Max EPS beat(2)35.01%
EPS beat(4)4
Avg EPS beat(4)30.67%
Min EPS beat(4)3.66%
Max EPS beat(4)58.42%
EPS beat(8)8
Avg EPS beat(8)104.09%
EPS beat(12)12
Avg EPS beat(12)87.47%
EPS beat(16)13
Avg EPS beat(16)28.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 9.45 | ||
| P/S | 0.37 | ||
| P/FCF | 11.48 | ||
| P/OCF | 7.84 | ||
| P/B | 1.22 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)1.11
EY10.94%
EPS(NY)1.07
Fwd EY10.58%
FCF(TTM)0.88
FCFY8.71%
OCF(TTM)1.3
OCFY12.76%
SpS27.62
BVpS8.3
TBVpS5.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 12.27% | ||
| ROCE | 10.17% | ||
| ROIC | 8.42% | ||
| ROICexc | 10.99% | ||
| ROICexgc | 15.16% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.69% | ||
| GM | 33.38% | ||
| FCFM | 3.2% |
ROA(3y)3.35%
ROA(5y)2.26%
ROE(3y)8.39%
ROE(5y)5.66%
ROIC(3y)6.65%
ROIC(5y)4.99%
ROICexc(3y)8.17%
ROICexc(5y)6.22%
ROICexgc(3y)11.25%
ROICexgc(5y)8.46%
ROCE(3y)8.02%
ROCE(5y)6.02%
ROICexcg growth 3Y119.71%
ROICexcg growth 5Y-6.65%
ROICexc growth 3Y114.39%
ROICexc growth 5Y-7.23%
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%
F-Score7
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.41 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 58.29% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 7.31 | ||
| Cash Conversion | 59.47% | ||
| Profit Quality | 86.82% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.87 |
F-Score7
WACC8%
ROIC/WACC1.05
Cap/Depr(3y)60.1%
Cap/Depr(5y)60.3%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.72%
Profit Quality(3y)170.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.35%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%13.04%
EPS Next Y-3.25%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.2%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%1.65%
Revenue Next Year3.38%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.38%
EBIT growth 3Y103.3%
EBIT growth 5Y-8.09%
EBIT Next Year59.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.24%
FCF growth 3YN/A
FCF growth 5Y-18.81%
OCF growth 1Y-51.89%
OCF growth 3YN/A
OCF growth 5Y-16.27%