Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 2.38%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.11
• 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: 114,741,570
• 10 Day Avg. Volume: 2,011,504
• 30 Day Avg. Volume: 1,755,372
• 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: 1.19
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 10.68
• 1Y Price Target: $18.50
• Price Target Upside: 10.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $18.50 ▲(10.18% Upside)

Steelcase's overall stock score is driven by strong earnings performance and positive technical indicators. The company's record revenue and earnings growth, particularly in the Americas and International segments, are significant strengths. However, financial performance is hindered by cash flow challenges, and valuation metrics suggest the stock may be overvalued. The positive earnings call sentiment further supports the stock's potential, despite regional challenges and restructuring costs.

Positive Factors

Revenue Growth

Steelcase's 5% revenue growth, particularly in the Americas and International segments, indicates robust demand and effective market strategies, supporting long-term business expansion.

Market Expansion

The proposed merger with HNI is a strategic initiative to expand market reach, potentially enhancing competitive positioning and driving future growth.

Profitability Improvements

Improved operating margins in key segments reflect enhanced operational efficiency and cost management, contributing to sustainable profitability.

Negative Factors

Cash Flow Challenges

Low operating cash flow relative to net income suggests liquidity issues, potentially impacting the company's ability to invest in growth and manage debt.

EMEA Region Challenges

Macroeconomic challenges in the EMEA region, particularly in Germany and France, hinder order growth, posing a risk to regional performance and overall revenue.

Education Sector Decline

Declining orders from education customers, driven by policy changes, could limit growth in this sector, affecting revenue diversification.

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 office furniture and related products. Its revenue model includes direct sales to businesses, government entities, and educational institutions, as well as indirect sales through a network of dealers and distributors. Key revenue streams are derived from the design and sale of workstations, seating solutions, and collaborative spaces, along with services such as space planning and consulting. Additionally, Steelcase benefits from significant partnerships with other companies in the design and technology sectors, which enhance its product offerings and market reach, thus contributing to its overall earnings.

Steelcase Financial Statement Overview

Summary

Steelcase demonstrates solid financial performance with consistent revenue growth and improving profitability. Balance Sheet metrics indicate financial stability, with a healthy Debt-to-Equity ratio and growing equity base. Cash Flow analysis shows positive trends, albeit with opportunities for further enhancement.

Income Statement

Steelcase shows a consistent revenue growth trajectory, with Total Revenue increasing from $2,772.7M in 2022 to $3,217.7M in TTM. Gross Profit Margin has improved over time, indicating cost efficiency with the latest at 33.4%. Net Profit Margin has also improved, reaching 3.8% in TTM. EBIT and EBITDA margins are stable, though not exceptionally high, at 5.2% and 7% respectively, reflecting controlled operating expenses.

Balance Sheet

The company's Debt-to-Equity ratio is manageable, though it shows a slight upward trend, currently at 0.61. Stockholders' Equity has grown, indicating a stable financial position with an Equity Ratio of 43.6%. Return on Equity has improved to 12.6%, showcasing better profitability but still has room for enhancement.

Cash Flow

Operating Cash Flow to Net Income Ratio is positive, indicating good cash conversion. Free Cash Flow has grown from negative in 2022 to $17.5M in TTM, reflecting effective management of operational and capital expenditures. However, the Free Cash Flow to Net Income Ratio is moderate, suggesting potential for further cash flow optimization.

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	214.90M	240.70M	216.60M	170.00M	110.50M	174.20M
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: 16.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 16.79 is below the 20-day moving average (MA) of 16.85, above the 50-day MA of 16.31, and above the 200-day MA of 12.10, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, 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
EBF	73 Outperform	$448.01M	10.77	12.71%	19.82%	-3.92%	3.04%
HNI	73 Outperform	$2.10B	14.88	18.50%	2.95%	-0.83%	28.96%
SCS	73 Outperform	$1.93B	21.25	9.46%	2.38%	3.92%	-24.47%
ACCO	67 Neutral	$357.83M	8.23	7.32%	7.52%	-8.80%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AVY	61 Neutral	$12.58B	18.09	31.68%	2.25%	1.66%	14.38%
MLKN	53 Neutral	$1.13B	45.68	-1.18%	4.49%	5.37%	-127.27%

Steelcase Corporate Events

Steelcase Completes Stock Conversion Amid HNI Merger

On August 8, 2025, Steelcase Inc. completed a significant stock conversion as part of a merger agreement with HNI Corporation, resulting in the conversion of 2,216,114 shares of Class B common stock into Class A common stock. This conversion, which aligns with the company’s strategic merger plans, leaves no outstanding shares of Class B stock and enhances the company’s capital structure, potentially impacting its market position and shareholder value.

Steelcase Enters Merger Agreement with HNI Corporation

On August 3, 2025, Steelcase Inc. entered into a merger agreement with HNI Corporation, involving a series of mergers that will result in Steelcase becoming a wholly owned subsidiary of HNI. The agreement outlines the conversion of Steelcase’s common stock into HNI shares or cash, with provisions for equity awards and voting agreements to facilitate the merger. This strategic move is expected to impact Steelcase’s operations by integrating it into HNI’s structure, potentially enhancing its market positioning and providing value to its shareholders.

Steelcase Shareholders Approve Incentive Compensation Plan

On July 9, 2025, Steelcase Inc. shareholders approved the Incentive Compensation Plan (ICP), which allows the company to grant various stock and cash-based awards to employees and directors. The plan aims to align employee incentives with company performance and includes a significant number of shares for potential issuance. Additionally, during the annual meeting, shareholders voted on several proposals, including the election of board members and the ratification of Deloitte & Touche LLP as the independent auditor for fiscal year 2026.

Steelcase Reports Strong Start to Fiscal 2026

Steelcase reported a strong start to fiscal 2026 with a 7% increase in first-quarter revenue compared to the previous year, driven by 9% growth in the Americas. The company’s operating income rose by 45%, and its gross margin improved by 170 basis points. Despite a slight decline in orders, Steelcase remains confident in its strategy, focusing on restructuring efforts and cost reduction initiatives to enhance profitability, especially in response to challenges in the international market. The company anticipates flat to 4% revenue growth in the second quarter of fiscal 2026, with continued emphasis on strategic investments and customer engagement.