STEELCASE INC-CL A (SCS) Stock Fundamental Analysis
USA - NYSE:SCS - US8581552036 - Common Stock
16.88 USD
-0.1 (-0.59%)
17.32 USD
+0.44 (+2.61%)
We assign a fundamental rating of 5 out of 10 to SCS. SCS was compared to 84 industry peers in the Commercial Services & Supplies industry. SCS has an average financial health and profitability rating. SCS is not valued too expensively and it also shows a decent growth rate.
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.
SCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.29%, SCS is in the better half of the industry, outperforming 70.24% of the companies in the same industry.
With a decent Return On Equity value of 12.15%, SCS is doing good in the industry, outperforming 70.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.82%, SCS is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCS is below the industry average of 10.60%.
The last Return On Invested Capital (8.82%) for SCS is above the 3 year average (6.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 12.15% | ||
| ROIC | 8.82% |
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 (3.71%) than 60.71% of its industry peers.
SCS's Profit Margin has declined in the last couple of years.
SCS has a Operating Margin (5.58%) which 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 of 33.57%. This is comparable to the rest of the industry: SCS outperforms 52.38% of its industry peers.
SCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | 3.71% | ||
| GM | 33.57% |
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
SCS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SCS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SCS has been reduced compared to 5 years ago.
Compared to 1 year ago, SCS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.42 indicates that SCS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.42, SCS is doing good in the industry, outperforming 65.48% of the companies in the same industry.
The Debt to FCF ratio of SCS is 25.56, which is on the high side as it means it would take SCS, 25.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCS (25.56) is comparable to the rest of the industry.
SCS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SCS (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 25.56 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.07
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.65 indicates that SCS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.65, SCS perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
SCS has a Quick Ratio of 1.15. 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 1.15, SCS is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.00% over the past year.
SCS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.84% yearly.
The Revenue has been growing slightly by 2.64% in the past year.
The Revenue has been decreasing by -3.19% on average over the past years.
EPS 1Y (TTM)15%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%25%
Revenue 1Y (TTM)2.64%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%7.11%
3.2 Future
SCS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.29% yearly.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-2.64%
EPS Next 2Y7.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.48%
Revenue Next 2Y3.5%
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.
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
Based on the Price/Earnings ratio of 14.68, the valuation of SCS can be described as correct.
SCS's Price/Earnings ratio is a bit cheaper when compared to the industry. SCS is cheaper than 79.76% of the companies in the same industry.
SCS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.21 indicates a correct valuation of SCS.
Based on the Price/Forward Earnings ratio, SCS is valued a bit cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. SCS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
SCS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 110.66 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCS has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 2.27, SCS pays a better dividend. On top of this SCS pays more dividend than 85.71% of the companies listed in the same industry.
SCS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
SCS has decreased its dividend recently.
Dividend Growth(5Y)-6.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.78% of the earnings are spent on dividend by SCS. This is a low number and sustainable payout ratio.
DP39.78%
EPS Next 2Y7.29%
EPS Next 3YN/A
16.88
-0.1 (-0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.13%
Inst Owner Change3.55%
Ins Owners2.29%
Ins Owner Change32.19%
Market Cap1.94B
Analysts76.67
Price Target16.58 (-1.78%)
Short Float %2.14%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP39.78%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.13%
Min EPS beat(2)25.57%
Max EPS beat(2)46.68%
EPS beat(4)4
Avg EPS beat(4)27.73%
Min EPS beat(4)3.66%
Max EPS beat(4)46.68%
EPS beat(8)8
Avg EPS beat(8)33.31%
EPS beat(12)12
Avg EPS beat(12)85.29%
EPS beat(16)13
Avg EPS beat(16)30.04%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)4
Avg Revenue beat(12)-0.23%
Revenue beat(16)5
Avg Revenue beat(16)-0.5%
PT rev (1m)0%
PT rev (3m)-1.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.21 | ||
| P/S | 0.6 | ||
| P/FCF | 110.66 | ||
| P/OCF | 29.12 | ||
| P/B | 1.97 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)1.15
EY6.81%
EPS(NY)1.28
Fwd EY7.57%
FCF(TTM)0.15
FCFY0.9%
OCF(TTM)0.58
OCFY3.43%
SpS28.05
BVpS8.57
TBVpS5.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 12.15% | ||
| ROCE | 10.65% | ||
| ROIC | 8.82% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 13.4% | ||
| OM | 5.58% | ||
| PM (TTM) | 3.71% | ||
| GM | 33.57% | ||
| FCFM | 0.54% |
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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 25.56 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 62.66% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 25.79% | ||
| Profit Quality | 14.66% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.42 |
F-Score7
WACC8.26%
ROIC/WACC1.07
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)15%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%25%
EPS Next Y-2.64%
EPS Next 2Y7.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.64%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%7.11%
Revenue Next Year3.48%
Revenue Next 2Y3.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.77%
EBIT growth 3Y103.3%
EBIT growth 5Y-8.09%
EBIT Next Year51.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-82.25%
FCF growth 3YN/A
FCF growth 5Y-18.81%
OCF growth 1Y-57.32%
OCF growth 3YN/A
OCF growth 5Y-16.27%