Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 2.48%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.99
• Revenue Growth: 3.92%
• EPS Growth: -24.47%
• Country: US
• Employees: 11,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.45
• Shares Outstanding: 114,842,080
• 10 Day Avg. Volume: 1,396,468
• 30 Day Avg. Volume: 1,522,554
• PEG Ratio: 0.23
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 13.67
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 11.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $17.50 ▲(4.98% Upside)

Steelcase's overall stock score reflects a stable financial performance with notable strengths in recent earnings growth and strategic corporate actions. However, profitability and cash flow challenges, along with legal risks from the merger, temper the outlook. The technical analysis and valuation suggest a neutral market position, with no strong momentum or valuation advantage.

Positive Factors

Revenue Growth

Sustained revenue growth in key markets indicates robust demand and effective market strategies, supporting long-term business expansion.

Strategic Merger

The merger with HNI is expected to strengthen market reach and operational capabilities, positioning Steelcase for future growth.

Profitability Improvements

Improved profitability in key segments reflects effective cost management and operational efficiency, enhancing long-term financial health.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates liquidity issues, potentially limiting investment in growth opportunities and affecting financial stability.

EMEA Region Challenges

Continued challenges in the EMEA region could hinder overall growth, requiring strategic adjustments to address regional market conditions.

Legal Risks from Merger

Legal challenges related to the merger could result in delays or additional costs, impacting the company's strategic objectives.

Steelcase Business Overview & Revenue Model

Company Description

Steelcase Inc. (SCS) is a global leader in the design and manufacturing of furniture and architectural products for the workplace. Established in 1912, the company operates in various sectors including office furniture, workspace solutions, and technology integration. Steelcase offers a wide range of products, such as desks, chairs, collaborative workspaces, and storage solutions, aimed at enhancing productivity and fostering collaboration in both corporate and educational environments.

How the Company Makes Money

Steelcase generates revenue primarily through the sale of its office furniture and workspace solutions. The company's revenue model includes direct sales to customers, as well as partnerships with dealers and distributors who sell Steelcase products in various markets. Key revenue streams include the sale of ergonomic office furniture, custom workspace designs, and integrated technology solutions that support modern work environments. Additionally, Steelcase benefits from long-term contracts and partnerships with large corporations, educational institutions, and government agencies, which provide a stable revenue base. The company also invests in research and development to innovate and expand its product offerings, thereby driving future sales growth.

Steelcase Financial Statement Overview

Summary

Steelcase demonstrates a stable revenue base with improving gross margins, but faces challenges in profitability and cash flow management. The balance sheet is relatively strong with moderate leverage, but cash flow issues could pose risks if not addressed. The company should focus on enhancing operational efficiency and cash generation to improve its financial health.

Income Statement

Steelcase shows a solid gross profit margin of 33.4% in TTM, indicating efficient cost management. The net profit margin of 2.9% is modest, reflecting some profitability challenges. Revenue growth is positive at 1.28% TTM, showing a recovery trend. However, the EBIT and EBITDA margins have slightly decreased compared to the previous annual report, suggesting some operational efficiency issues.

Balance Sheet

The debt-to-equity ratio of 0.61 in TTM indicates a moderate level of leverage, which is manageable. Return on equity is 9.8%, showing a decent return for shareholders. The equity ratio stands at 43.2%, suggesting a stable financial structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

The operating cash flow to net income ratio is low at 2.8% in TTM, indicating potential cash flow challenges. Free cash flow is negative, with a concerning decline of over 300% in growth, highlighting liquidity issues. The free cash flow to net income ratio is negative, suggesting the company is not generating sufficient cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.26B	3.17B	3.16B	3.23B	2.77B	2.60B
Gross Profit	1.09B	1.05B	1.01B	919.40M	761.50M	762.80M
EBITDA	208.30M	240.70M	216.60M	170.00M	110.50M	138.20M
Net Income	95.30M	120.70M	81.10M	35.30M	4.00M	26.10M
Balance Sheet
Total Assets	2.35B	2.33B	2.24B	2.20B	2.26B	2.35B
Cash, Cash Equivalents and Short-Term Investments	257.90M	387.90M	318.60M	90.40M	200.90M	489.80M
Total Debt	620.50M	600.70M	630.00M	695.80M	708.90M	727.20M
Total Liabilities	1.34B	1.38B	1.35B	1.38B	1.41B	1.39B
Stockholders Equity	1.02B	951.70M	887.10M	826.20M	852.20M	960.50M
Cash Flow
Free Cash Flow	-37.30M	101.40M	261.60M	30.30M	-163.10M	23.50M
Operating Cash Flow	17.30M	148.50M	308.70M	89.40M	-102.60M	64.80M
Investing Cash Flow	-38.30M	-34.80M	6.10M	-134.80M	-65.50M	-30.60M
Financing Cash Flow	-59.00M	-84.00M	-85.90M	-62.90M	-120.00M	-87.80M

Steelcase Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCS, the sentiment is Neutral. The current price of 16.67 is above the 20-day moving average (MA) of 16.00, above the 50-day MA of 16.28, and above the 200-day MA of 13.10, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 34.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCS.

Steelcase Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNI	74 Outperform	$1.87B	13.65	16.83%	3.17%	1.15%	16.20%
AVY	73 Outperform	$13.37B	19.64	30.21%	2.09%	1.03%	5.52%
EBF	73 Outperform	$455.95M	10.96	12.71%	5.49%	-3.92%	3.04%
SCS	68 Neutral	$1.85B	20.34	9.46%	2.48%	3.92%	-24.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.08B	―	-1.18%	4.55%	5.37%	-127.27%
ACCO	59 Neutral	$338.01M	8.72	6.45%	8.00%	-9.53%	―

Steelcase Corporate Events

Steelcase Completes Merger with HNI Corporation

Steelcase, a prominent player in the office furniture industry, recently completed a significant merger with HNI Corporation on December 10, 2025. This merger led to the termination of Steelcase’s credit commitments and the release of liens on its properties. As part of the merger, Steelcase’s common stock was delisted from the New York Stock Exchange, and the company underwent a structural transformation into a limited liability company. The merger is expected to enhance HNI’s market position, combining complementary portfolios and capabilities to create a leading enterprise with pro forma annual revenues of $5.8 billion. The integration aims to leverage synergies for operational enhancements and digital transformation, benefiting stakeholders and strengthening the combined business’s ability to meet evolving workplace needs.

Steelcase Shareholders Approve Merger with HNI Corporation

On December 5, 2025, Steelcase Inc. held a special meeting where shareholders approved a merger proposal with HNI Corporation, marking a significant step towards HNI’s acquisition of Steelcase. The transaction is expected to close on December 10, 2025, pending customary closing conditions. However, a proposal related to executive compensation was not approved. This merger positions Steelcase as a wholly owned subsidiary of HNI, potentially enhancing its market reach and operational capabilities.

Steelcase Approaches Merger Deadline with HNI Corporation

On August 3, 2025, Steelcase Inc. entered into a merger agreement with HNI Corporation, involving a two-step merger process. The deadline for Steelcase shareholders to elect their preferred form of merger consideration is set for December 4, 2025. The completion of the transaction is pending shareholder approval and other customary conditions. The merger is expected to impact the operations and market positioning of both companies, with potential risks and uncertainties highlighted in the announcement.

Steelcase Faces Legal Challenges in HNI Merger

On August 3, 2025, Steelcase Inc. entered into a Merger Agreement with HNI Corporation, leading to a series of mergers that would make Steelcase a wholly owned subsidiary of HNI. This merger process, which included the filing of a registration statement and joint proxy statement/prospectus, faced legal challenges from Steelcase shareholders in Michigan and New York, who alleged breaches of fiduciary duties and sought additional disclosures. Despite denying the allegations, Steelcase agreed to provide supplemental disclosures to address these claims and avoid potential business delays. The merger is expected to impact Steelcase’s operations and market positioning, with potential implications for stakeholders.

Steelcase Announces Leadership Changes Amid HNI Transaction

On November 6, 2025, Steelcase Inc. announced significant leadership changes following the pending transaction with HNI Corporation. The employment of CEO Sara E. Armbruster and Chief People Officer Donna K. Flynn will terminate post-closing, with severance benefits as per the executive plan. Meanwhile, Robert G. Krestakos will continue as COO during a transition period into 2026. The leadership structure will see Allan W. Smith, Jr., David C. Sylvester, Steven D. Miller, and Megan A. Blazina continuing in key roles with expanded responsibilities. These changes are part of Steelcase’s strategic alignment post-transaction, impacting its operations and market positioning.

Steelcase Amends Indenture Amid HNI Acquisition

HNI Corporation is proceeding with its acquisition of Steelcase Inc. by offering to exchange outstanding Steelcase notes for new HNI notes, aiming to amend the existing indenture to eliminate certain covenants. On October 9, 2025, Steelcase entered into a Supplemental Indenture to effect these amendments, which will become operative following the settlement of the exchange offer, expected shortly after October 27, 2025.