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 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
SCS has a better Return On Assets (4.09%) than 67.07% of its industry peers.
The Return On Equity of SCS (9.98%) is better than 70.73% of its industry peers.
With a decent Return On Invested Capital value of 6.73%, SCS is doing good in the industry, outperforming 65.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCS is significantly below the industry average of 9.40%.
The 3 year average ROIC (3.63%) for SCS is below the current ROIC(6.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 9.98% | ||
| ROIC | 6.73% |
ROA(3y)1.73%
ROA(5y)2.78%
ROE(3y)4.46%
ROE(5y)7.24%
ROIC(3y)3.63%
ROIC(5y)4.85%
1.3 Margins
Looking at the Profit Margin, with a value of 2.78%, SCS is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
SCS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.75%, SCS perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
In the last couple of years the Operating Margin of SCS has declined.
With a Gross Margin value of 32.61%, SCS perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
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 | 4.75% | ||
| PM (TTM) | 2.78% | ||
| GM | 32.61% |
OM growth 3Y8.93%
OM growth 5Y-3.59%
PM growth 3Y35.96%
PM growth 5Y-7.2%
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.
Compared to 1 year ago, SCS has more shares outstanding
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 3.24 indicates that SCS is not in any danger for bankruptcy at the moment.
SCS's Altman-Z score of 3.24 is fine compared to the rest of the industry. SCS outperforms 73.17% of its industry peers.
The Debt to FCF ratio of SCS is 2.34, which is a good value as it means it would take SCS, 2.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.34, SCS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that SCS is somewhat dependend on debt financing.
The Debt to Equity ratio of SCS (0.51) is better than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.87
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.61 indicates that SCS should not have too much problems paying its short term obligations.
SCS has a Current ratio of 1.61. This is comparable to the rest of the industry: SCS outperforms 56.10% of its industry peers.
A Quick Ratio of 1.15 indicates that SCS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, SCS perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.93% 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 -3.35% in the last year.
The Revenue has been decreasing by -1.70% on average over the past years.
EPS 1Y (TTM)44.93%
EPS 3Y22.17%
EPS 5Y-4.97%
EPS Q2Q%77.78%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y6.77%
Revenue growth 5Y-1.7%
Sales Q2Q%-3.27%
3.2 Future
SCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.47% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.03, which indicates a correct valuation of SCS.
Based on the Price/Earnings ratio, SCS is valued cheaper than 89.02% of the companies in the same industry.
SCS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
Based on the Price/Forward Earnings ratio of 13.01, the valuation of SCS can be described as correct.
Based on the Price/Forward Earnings ratio, SCS is valued a bit cheaper than 79.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCS to the average of the S&P500 Index (20.59), we can say SCS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
82.93% of the companies in the same industry are more expensive than SCS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCS indicates a rather cheap valuation: SCS is cheaper than 87.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 7.67 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, SCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.23, SCS pays a better dividend. On top of this SCS pays more dividend than 89.02% of the companies listed in the same industry.
SCS's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of SCS decreases each year by -5.36%.
SCS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.88% of the earnings are spent on dividend by SCS. This is a bit on the high side, but may be sustainable.
DP54.88%
EPS Next 2Y7.67%
EPS Next 3Y12.47%
STEELCASE INC-CL A
NYSE:SCS (7/26/2024, 7:04:00 PM)
After market: 14.03 0 (0%)14.03
+0.2 (+1.45%)
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 Cap1.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 | 14.03 | ||
| Fwd PE | 13.01 | ||
| 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 | 4.09% | ||
| ROE | 9.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.75% | ||
| PM (TTM) | 2.78% | ||
| GM | 32.61% | ||
| 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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.15 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)44.93%
EPS 3Y22.17%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y6.77%
Revenue growth 5Y
Sales 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