STEELCASE INC-CL A (SCS)
US8581552036 - Common Stock
SCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SCS has been profitable.
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 3.49%, SCS is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
With a decent Return On Equity value of 8.79%, SCS is doing good in the industry, outperforming 69.88% of the companies in the same industry.
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 10.00%.
The last Return On Invested Capital (6.20%) for SCS is above the 3 year average (3.63%), which is a sign of increasing profitability.
| Industry Rank | Sector 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.
In the last couple of years the Profit Margin of SCS has declined.
SCS has a Operating Margin of 4.44%. This is comparable to the rest of the industry: SCS outperforms 45.78% of its industry peers.
In the last couple of years the Operating Margin of SCS has declined.
With a Gross Margin value of 32.18%, SCS perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
SCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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 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
SCS has an Altman-Z score of 2.99. 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.
The Altman-Z score of SCS (2.99) is better than 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.
SCS's Debt to FCF ratio of 1.71 is fine compared to the rest of the industry. SCS outperforms 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.
With a decent Debt to Equity ratio value of 0.50, SCS is doing good in the industry, outperforming 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.79
WACC7.86%
2.3 Liquidity
SCS has a Current Ratio of 1.58. This is a normal value and indicates that SCS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SCS (1.58) is comparable to the rest of the 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.
With a Quick ratio value of 1.20, SCS perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.09% over the past year.
Measured over the past years, SCS shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.97% on average per year.
Looking at the last year, SCS shows a decrease in Revenue. The Revenue has decreased by -2.26% in the last year.
The Revenue has been decreasing by -1.70% on average over the past years.
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
Based on estimates for the next years, SCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.47% on average per year.
SCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.82, SCS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 85.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. SCS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.97, SCS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 85.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, SCS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.97 |
4.2 Price Multiples
SCS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCS is cheaper than 86.75% of the companies in the same industry.
95.18% of the companies in the same industry are more expensive than SCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
SCS's earnings are expected to grow with 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.67%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, SCS pays a better dividend. On top of this SCS pays more dividend than 87.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SCS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector 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 (4/25/2024, 7:16:29 PM)
After market: 11.92 0 (0%)11.92
-0.18 (-1.49%)
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 Rank | Sector 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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.97 | ||
| 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 Rank | Sector 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 Rank | Sector 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