Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 4.16%
• Average Volume (3M): 936.76K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.68
• Revenue Growth: 0.20%
• EPS Growth: 50.50%
• Country: US
• Employees: 11,300
• Sector: Industrials
• Sector Strength: 66
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.01
• Shares Outstanding: 95,323,074
• 10 Day Avg. Volume: 848,651
• 30 Day Avg. Volume: 936,757
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.38
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 2.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.00
• Price Target Upside: 70.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Steelcase demonstrates solid financial performance with consistent revenue growth and profitability. Its undervaluation and attractive dividend yield make it appealing to investors. However, technical indicators suggest caution due to bearish trends. Positive earnings call sentiment and strategic growth plans in the Americas support the stock's outlook, while international challenges and trade uncertainties persist.

Steelcase Business Overview & Revenue Model

Company Description

Steelcase 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 Money

Steelcase 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 demonstrates solid financial health with consistent revenue growth and improved profitability margins. The balance sheet reflects sound financial management with decreasing leverage and a strong equity position. However, the decline in free cash flow warrants monitoring.

Income Statement

Steelcase has demonstrated consistent revenue growth with a recent increase from $3,159.6M to $3,166M. The company's gross profit margin is strong at approximately 33%, and net profit margin has improved to 3.8% from the previous year's 2.6%. EBIT and EBITDA margins show steady performance, indicating operational efficiency. However, the revenue growth rate is modest, and historical fluctuations in net income need attention for sustained profitability.

Balance Sheet

The balance sheet shows a stable equity ratio of 40.8%, indicating strong equity backing. The debt-to-equity ratio has decreased, highlighting improved financial leverage management. Return on Equity (ROE) has increased to 12.7%, reflecting enhanced profitability relative to equity. However, total liabilities remain significant, and continued focus on debt reduction would be beneficial to mitigate financial risk.

Cash Flow

Operating cash flow remains positive at $148.5M, though it decreased from the previous year. Free cash flow is positive at $101.4M, yet it has declined from the prior period, indicating potential challenges in cash generation. The operating cash flow to net income ratio is strong, suggesting good conversion of earnings into cash. Attention to improving free cash flow growth is advisable to ensure liquidity.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.15B	3.17B	3.16B	3.23B	2.77B	2.60B
	Gross Profit
1.05B	1.05B	1.01B	919.40M	761.50M	762.80M
	EBIT
185.00M	158.10M	117.80M	95.70M	20.10M	87.20M
	EBITDA
253.70M	158.10M	216.60M	165.30M	87.20M	174.20M
	Net Income Common Stockholders
114.40M	120.70M	81.10M	35.30M	4.00M	26.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.40M	387.90M	318.60M	90.40M	200.90M	489.80M
	Total Assets
2.20B	2.33B	2.24B	2.20B	2.26B	2.35B
	Total Debt
695.80M	600.70M	630.00M	695.80M	708.90M	727.20M
	Net Debt
605.40M	254.40M	311.40M	605.40M	508.00M	237.40M
	Total Liabilities
1.38B	709.60M	1.35B	1.38B	1.41B	1.39B
	Stockholders Equity
826.20M	951.70M	887.10M	826.20M	852.20M	960.50M
Cash Flow		Free Cash Flow
160.00M	101.40M	261.60M	30.30M	-163.10M	23.50M
	Operating Cash Flow
205.30M	148.50M	308.70M	89.40M	-102.60M	64.80M
	Investing Cash Flow
-16.70M	-34.80M	6.10M	-134.80M	-65.50M	-30.60M
	Financing Cash Flow
-84.00M	-84.00M	-85.90M	-62.90M	-120.00M	-87.80M

Steelcase Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.95 is below the 20-day moving average (MA) of 10.34, below the 50-day MA of 11.06, and below the 200-day MA of 12.22, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 21.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCS.

Steelcase Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVY	75 Outperform	$13.81B	20.02	31.75%	2.01%	4.68%	40.68%
SCS	71 Outperform	$1.11B	9.48	12.70%	4.16%	0.20%	50.50%
CDRE	71 Outperform	$1.19B	32.78	14.21%	1.22%	17.62%	-12.37%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
XMTR	56 Neutral	$1.17B	―	-15.66%	―	17.72%	26.99%
HNI	51 Neutral	$1.93B	14.32	17.42%	3.20%	3.80%	182.70%
ACCO	47 Neutral	$339.67M	―	-14.59%	7.96%	-9.09%	-356.14%

Steelcase Corporate Events

Steelcase Reports Fiscal 2025 Results with Order Growth

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.