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%)
Overall SCS gets a fundamental rating of 5 out of 10. We evaluated SCS against 82 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 correct valuation and a medium 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.
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
SCS has a Return On Assets of 3.92%. This is in the better half of the industry: SCS outperforms 67.07% of its industry peers.
With a decent Return On Equity value of 9.07%, SCS is doing good in the industry, outperforming 67.07% of the companies in the same industry.
SCS's Return On Invested Capital of 7.24% is fine compared to the rest of the industry. SCS outperforms 64.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCS is below the industry average of 10.13%.
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
Looking at the Profit Margin, with a value of 2.83%, SCS is in line with its industry, outperforming 58.54% of the companies in the same industry.
SCS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.68%, SCS is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SCS has declined.
SCS's Gross Margin of 33.60% is in line compared to the rest of the industry. SCS outperforms 52.44% of 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
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 less shares outstanding
SCS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SCS has been reduced compared to a year ago.
2.2 Solvency
SCS has an Altman-Z score of 3.24. This indicates that SCS is financially healthy and has little risk of bankruptcy at the moment.
SCS has a Altman-Z score of 3.24. This is in the better half of the industry: SCS outperforms 68.29% of its industry peers.
SCS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, SCS perfoms like the industry average, outperforming 53.66% of the companies in the same 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
A Current Ratio of 1.66 indicates that SCS should not have too much problems paying its short term obligations.
SCS has a Current ratio (1.66) which is comparable to the rest of the industry.
SCS has a Quick Ratio of 1.18. 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 1.18, SCS perfoms like the industry average, outperforming 42.68% 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.
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 3.92% in the past 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
The Earnings Per Share is expected to grow by 7.07% on average over the next years.
The Revenue is expected to grow by 3.54% on average over the next years.
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.
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 correctly with a Price/Earnings ratio of 13.34.
Based on the Price/Earnings ratio, SCS is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
SCS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.68, which indicates a correct valuation of SCS.
Based on the Price/Forward Earnings ratio, SCS is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SCS to the average of the S&P500 Index (23.58), we can say SCS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
75.61% of the companies in the same industry are more expensive than SCS, based on the Enterprise Value to EBITDA ratio.
| 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%. Purely for dividend investing, there may be better candidates out there.
SCS's Dividend Yield is rather good when compared to the industry average which is at 0.93. SCS pays more dividend than 87.80% of the companies in the same industry.
SCS's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| 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
51.74% of the earnings are spent on dividend by SCS. This is a bit on the high side, but may be sustainable.
DP51.74%
EPS Next 2Y7.07%
EPS Next 3YN/A
16.14
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.81%
Inst Owner Change17.93%
Ins Owners3.66%
Ins Owner Change-83.66%
Market Cap1.85B
Revenue(TTM)3.26B
Net Income(TTM)92.20M
Analysts76.67
Price Target17.16 (6.32%)
Short Float %2.87%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.7%
DP51.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.37%
Min EPS beat(2)22.07%
Max EPS beat(2)46.68%
EPS beat(4)4
Avg EPS beat(4)32.33%
Min EPS beat(4)22.07%
Max EPS beat(4)46.68%
EPS beat(8)8
Avg EPS beat(8)29.15%
EPS beat(12)12
Avg EPS beat(12)81.87%
EPS beat(16)14
Avg EPS beat(16)31.96%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.04%
PT rev (1m)0%
PT rev (3m)3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.06%
EPS NY rev (1m)0%
EPS NY rev (3m)5.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.68 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 107.14 | ||
| P/B | 1.82 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)1.21
EY7.5%
EPS(NY)1.27
Fwd EY7.88%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.15
OCFY0.93%
SpS28.38
BVpS8.85
TBVpS5.83
PEG (NY)5.64
PEG (5Y)N/A
Graham Number15.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 9.07% | ||
| ROCE | 8.74% | ||
| ROIC | 7.24% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 11.08% | ||
| OM | 4.68% | ||
| PM (TTM) | 2.83% | ||
| GM | 33.6% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y119.71%
ROICexgc 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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 70.45% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 7.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.24 |
F-Score7
WACC8.09%
ROIC/WACC0.89
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)12.04%
EPS 3Y233.22%
EPS 5Y-5.84%
EPS Q2Q%15.38%
EPS Next Y2.36%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.92%
Revenue growth 3Y4.52%
Revenue growth 5Y-3.19%
Sales Q2Q%4.83%
Revenue Next Year4.26%
Revenue Next 2Y3.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.61%
EBIT growth 3Y103.3%
EBIT growth 5Y-8.09%
EBIT Next Year59.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-115.51%
FCF growth 3YN/A
FCF growth 5Y-18.81%
OCF growth 1Y-94.14%
OCF growth 3YN/A
OCF growth 5Y-16.27%
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.
What is the valuation status for SCS stock?
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.
How financially healthy is Steelcase Inc?
The financial health rating of Steelcase Inc (SCS) is 5 / 10.
Can you provide the dividend sustainability for SCS stock?
The dividend rating of Steelcase Inc (SCS) is 5 / 10 and the dividend payout ratio is 51.74%.