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%)
We assign a fundamental rating of 5 out of 10 to SCS. SCS was compared to 80 industry peers in the Commercial Services & Supplies industry. SCS has only an average score on both its financial health and profitability. SCS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SCS was profitable.
- In the past year SCS had a positive cash flow from operations.
- SCS had positive earnings in each of the past 5 years.
- Of the past 5 years SCS 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.92%, SCS is in the better half of the industry, outperforming 69.14% of the companies in the same industry.
- With a decent Return On Equity value of 9.07%, SCS is doing good in the industry, outperforming 69.14% of the companies in the same industry.
- SCS has a better Return On Invested Capital (7.24%) than 65.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SCS is below the industry average of 10.58%.
- The last Return On Invested Capital (7.24%) for SCS is above the 3 year average (6.65%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 2.83%, SCS is doing good in the industry, outperforming 60.49% of the companies in the same industry.
- SCS's Profit Margin has declined in the last couple of years.
- The Operating Margin of SCS (4.68%) is comparable to the rest of the industry.
- SCS's Operating Margin has declined in the last couple of years.
- SCS has a Gross Margin (33.60%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCS is destroying value.
- The number of shares outstanding for SCS has been reduced compared to 1 year ago.
- The number of shares outstanding for SCS has been reduced compared to 5 years ago.
- SCS has a better debt/assets ratio than last year.
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.
- SCS has a Debt to Equity ratio (0.44) which is comparable to the rest of the 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.
- Looking at the Current ratio, with a value of 1.66, SCS is in the better half of the industry, outperforming 60.49% of the companies in the same industry.
- A Quick Ratio of 1.18 indicates that SCS should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.18, SCS perfoms like the industry average, outperforming 43.21% of the companies in the same industry.
| 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.
- Measured over the past years, SCS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.84% on average per year.
- Looking at the last year, SCS shows a small growth in Revenue. The Revenue has grown by 3.92% in the last year.
- SCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.19% yearly.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.34, which indicates a correct valuation of SCS.
- SCS's Price/Earnings ratio is rather cheap when compared to the industry. SCS is cheaper than 81.48% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SCS to the average of the S&P500 Index (27.21), we can say SCS is valued rather cheaply.
- SCS is valuated correctly with a Price/Forward Earnings ratio of 12.68.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 82.72% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SCS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- SCS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCS is 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 an expensive valuation of the company.
PEG (NY)5.64
PEG (5Y)N/A
EPS Next 2Y7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SCS has a Yearly Dividend Yield of 2.48%.
- SCS's Dividend Yield is rather good when compared to the industry average which is at 0.83. SCS pays more dividend than 86.42% of the companies 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 been paying a dividend for at least 10 years, so it has 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
- SCS pays out 51.74% of its income as dividend. 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.