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Steelcase Inc (SCS)
NYSE:SCS
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Steelcase
(NYSE:SCS)
68Neutral
Steelcase (SCS) vs. S&P 500 (SPY)
Market Cap
$1.26B
Dividend Yield3.6%
Average Volume (3M)765.23K
Price to Earnings (P/E)10.9
Beta (1Y)0.85
Revenue Growth0.20%
EPS Growth51.62%
CountryUS
Employees11,300
SectorIndustrials
Sector Strength65
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)1.02
Shares Outstanding94,078,415
10 Day Avg. Volume1,080,091
30 Day Avg. Volume765,229
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)N/A
Price to Sales (P/S)0.38
Price to Cash Flow (P/CF)3.00
P/FCF Ratio2.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside55.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Steelcase Business Overview & Revenue Model
Company DescriptionSteelcase Inc. provides a portfolio of furniture and architectural products in the United States and internationally. It operates through Americas, EMEA, and Other segments. The company's furniture portfolio includes furniture systems, seating, storage, fixed and height-adjustable desks, benches, and tables, as well as complementary products, such as work accessories, lighting, and mobile power and screens. Its seating products comprise task chairs; seating for collaborative environments and casual settings; and specialty seating for specific vertical markets, including education and healthcare. The company's interior architectural products comprise full and partial height walls and architectural pods. It also provides textiles, wall coverings, and surface imaging solutions for architects and designers; and workplace strategy consulting, lease origination, and furniture and asset management services. The company markets and sells its products to corporate, government, healthcare, education, and retail customers under the Steelcase, Designtex, Coalesse, AMQ, Smith System, Orangebox, and Viccarbe brands. It distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. The company was founded in 1912 and is headquartered in Grand Rapids, Michigan.
How the Company Makes MoneySteelcase generates revenue primarily through the sale of its office furniture and related products. The company's key revenue streams include direct sales to businesses, government organizations, educational institutions, and healthcare facilities. Steelcase also collaborates with a network of authorized dealers and distributors to expand its market reach. Additionally, the company offers consultancy services for workspace design and planning, contributing to its earnings. Significant partnerships with architects, designers, and technology firms further enhance Steelcase's product offerings and market presence, supporting its revenue growth.
Steelcase Financial Statement Overview
Summary
Steelcase's financial performance is stable but with growth challenges. The company shows reasonable profitability and solid cash generation capabilities, though revenue growth has declined, and liabilities are high.Income Statement
Steelcase's income statement reveals a moderate financial performance. The Gross Profit Margin for the TTM period is approximately 33.2%, indicating healthy production efficiency. The Net Profit Margin stands at 3.63%, reflecting moderate profitability. Revenue Growth Rate shows a decline of 2.1% from the previous annual period, suggesting challenges in maintaining sales momentum. The EBIT Margin for TTM is 5.87%, and the EBITDA Margin is 8.04%, both reflecting decent operational efficiency. Despite some growth challenges, the company maintains reasonable profitability.70
Positive
Balance Sheet
The balance sheet indicates a stable financial structure with some areas of concern. The Debt-to-Equity Ratio is 0.64, suggesting manageable leverage. Return on Equity (ROE) is approximately 12.27%, showing decent returns to shareholders. The Equity Ratio is 40.18%, indicating a solid equity base. However, the company's total liabilities are substantial, which may pose some risks if revenue growth does not improve.65
Positive
Cash Flow
Steelcase's cash flow statement highlights a mixed performance. The Free Cash Flow Growth Rate is negative between the TTM and the previous annual period, showing a decline in cash generation. The Operating Cash Flow to Net Income Ratio is 1.79, which is strong, indicating effective conversion of profits to cash. The Free Cash Flow to Net Income Ratio is 1.40, also reflecting solid cash generation capabilities. While cash flow metrics show strength, the decline in free cash flow growth is concerning.68
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.15B | 3.16B | 3.23B | 2.77B | 2.60B | 3.72B | Gross Profit |
| 1.05B | 1.01B | 919.40M | 761.50M | 762.80M | 1.22B | EBIT |
| 185.00M | 117.80M | 95.70M | 20.10M | 87.20M | 257.00M | EBITDA |
| 253.70M | 216.60M | 165.30M | 87.20M | 174.20M | 322.00M | Net Income Common Stockholders |
| 114.40M | 81.10M | 35.30M | 4.00M | 26.10M | 199.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 194.40M | 318.60M | 90.40M | 200.90M | 489.80M | 541.00M | Total Assets |
| 1.75B | 2.24B | 2.20B | 2.26B | 2.35B | 2.57B | Total Debt |
| 298.60M | 630.00M | 695.80M | 708.90M | 727.20M | 741.40M | Net Debt |
| 179.60M | 311.40M | 605.40M | 508.00M | 237.40M | 200.40M | Total Liabilities |
| 1.04B | 1.35B | 1.38B | 1.41B | 1.39B | 1.59B | Stockholders Equity |
| 711.10M | 887.10M | 826.20M | 852.20M | 960.50M | 970.40M |
| Cash Flow | Free Cash Flow | ||||
| 160.00M | 261.60M | 30.30M | -163.10M | 23.50M | 287.40M | Operating Cash Flow |
| 205.30M | 308.70M | 89.40M | -102.60M | 64.80M | 360.80M | Investing Cash Flow |
| -16.70M | 6.10M | -134.80M | -65.50M | -30.60M | 4.50M | Financing Cash Flow |
| -84.00M | -85.90M | -62.90M | -120.00M | -87.80M | -81.90M |
Steelcase Technical Analysis
Negative
10.96
Price Trends
11.56
Negative
12.05
Negative
12.51
Negative
Market Momentum
-0.23
Negative
44.73
Neutral
58.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCS, the sentiment is Negative. The current price of 10.96 is below the 20-day moving average (MA) of 11.10, below the 50-day MA of 11.56, and below the 200-day MA of 12.51, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCS.
Steelcase Risk Analysis
Steelcase disclosed 17 risk factors in its most recent earnings report. Steelcase reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Steelcase Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.66B | 22.83 | 22.70% | 0.70% | 0.37% | 3.52% | |
68 Neutral | $1.26B | 10.93 | 12.80% | 3.60% | 0.20% | 51.62% | |
68 Neutral | $356.94M | 19.81 | 22.27% | 3.82% | -8.78% | -13.24% | |
62 Neutral | $8.05B | 13.60 | 4.04% | 3.11% | 3.70% | -14.19% | |
58 Neutral | $1.35B | 46.53 | 2.28% | 3.79% | -2.68% | -56.16% | |
57 Neutral | $1.35B | ― | -26.50% | ― | -3.04% | -433.94% | |
52 Neutral | $2.09B | 15.53 | 17.42% | 2.96% | 3.80% | 182.70% |
* Industrials Sector Average
Performance Comparison
SCS
Steelcase
10.96
-1.67
-13.22%
AIT
Applied Industrial Technologies
225.34
31.30
16.13%
MLKN
MillerKnoll, Inc.
19.14
-6.24
-24.59%
HNI
HNI
44.35
1.41
3.28%
OFLX
Omega Flex
34.78
-35.45
-50.48%
KN
Knowles
15.20
-0.94
-5.82%
Steelcase Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 3.40% | Next Earnings Date: Jun 18, 2025
Earnings Call Sentiment Neutral
Steelcase reported strong fiscal 2025 results with growth in the Americas and improved margins, offset by challenges in the international segment and trade uncertainties. The company's strategic initiatives are progressing well, with positive demand signals supporting future growth.Highlights
Strong Fiscal 2025 Performance
Steelcase reported adjusted earnings per share of $1.12, exceeding the top end of their target range. They delivered an adjusted operating margin of 5%, with the Americas segment achieving 7%.
Order Growth and Market Share Gains
Fourth quarter order growth was 9%, led by 12% growth in the Americas. This marks the sixth consecutive quarter of year-over-year order growth in the Americas, with market share gains reported.
Improved Gross Margin
Steelcase achieved their 11th consecutive quarter of year-over-year gross margin expansion, improving over 500 basis points since fiscal 2022.
Positive Demand Signals
Increased office leasing activity in the US, with Q4 leasing up 24% versus Q3 and 23% year-over-year, marking the highest quarter in three years.
International Segment Improvement
The international segment showed improvement in the first half of the year, driven by cost reductions and positive demand signals from large and national accounts.
Cash Flow and Shareholder Returns
Steelcase generated $100 million in free cash flow and returned $84 million to shareholders.
Lowlights
Revenue Decline
Fourth quarter revenue declined 5% organically, with a 3% decline in the Americas and a 10% decline in International, impacted by lower beginning backlog and unfavorable business mix.
International Segment Challenges
Despite some improvements, the International segment faced higher manufacturing costs, operating expenses, and a decline in small to midsize business, particularly in Germany, France, and India.
Tariff and Trade Uncertainty
Steelcase is facing new tariffs and global trade uncertainty, requiring pricing actions, inventory purchases, and supply chain shifts.
Company Guidance
During the Steelcase Fourth Quarter Fiscal 2025 Conference Call, the company reported strong financial performance with a full-year adjusted earnings per share of $1.12, surpassing their expectations. The adjusted operating margin for the year was 5%, with a notable 7% margin in the Americas. In the fourth quarter, Steelcase achieved a 9% order growth, led by a 12% increase in the Americas, marking the sixth consecutive quarter of year-over-year order growth in this region. The quarter also saw a 500 basis point improvement in gross margin since fiscal 2022. Revenue for the quarter reached $788 million, falling within the upper end of the projected range, and adjusted earnings per share for the quarter were $0.26, boosted by favorable tax items. Looking ahead to fiscal 2026, Steelcase targets mid-single-digit organic revenue growth, with a modest improvement in adjusted operating margin, despite facing challenges such as new tariffs and global trade uncertainties. The company plans capital expenditures and cloud computing costs of $70 million to $80 million, and it expects to break even in its International segment with anticipated profitability in the second half of the year.Steelcase Corporate Events
Business Operations and StrategyFinancial Disclosures
Steelcase Reports Fiscal 2025 Results with Order Growth
Positive
Mar 26, 2025
Steelcase reported its fourth quarter and fiscal 2025 results, showing a 9% increase in orders, driven by 12% growth in the Americas, and a 70 basis point improvement in gross margin. Despite a 2% revenue growth in the fourth quarter, the company faced a 7% decline in international revenue. For fiscal 2025, Steelcase achieved a 4% order growth, with a 6% increase in the Americas, and improved its operating income margin by 130 basis points. The company returned $84 million to shareholders and strengthened its liquidity by $73 million. Looking ahead, Steelcase has set financial targets for fiscal 2026, aiming for mid-single-digit organic revenue growth and modest adjusted operating margin expansion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.