Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 2.4%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.97
• Revenue Growth: 2.64%
• EPS Growth: 37.59%
• Country: US
• Employees: 11,300
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.20
• Shares Outstanding: 114,717,470
• 10 Day Avg. Volume: 2,067,581
• 30 Day Avg. Volume: 2,635,129
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $17.43
• Price Target Upside: 4.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $18.00 ▲(8.04% Upside)

Steelcase's overall stock score is driven by strong technical momentum and positive earnings call sentiment, highlighting revenue growth and margin expansion. Financial performance is solid, though there is room for cash flow optimization. Valuation is fair, with a reasonable P/E ratio and attractive dividend yield. The merger with HNI Corporation is a strategic positive, but its impact is already reflected in the earnings analysis.

Positive Factors

Corporate Demand

Large corporate customers in the Americas showed significant order growth, helping to offset challenges in other sectors.

Financial Performance

Steelcase reported strong results with revenue, EBITDA, and EPS exceeding consensus expectations.

Office Redesign Demand

Office redesigns are increasingly necessary as employees return to the office, indicating strong demand for Steelcase's offerings.

Negative Factors

Contract Customer Demand

Uncertainty around tariffs is leading to shelved demand from contract customers.

Department of Education Impact

Changes at the Department of Education muted demand, impacting the seasonally strongest quarter for education sales.

Federal Policy Uncertainty

Federal policy uncertainty weighs on orders, affecting industry narrative and demand from contract customers.

Steelcase Business Overview & Revenue Model

Company Description

Steelcase Inc. (SCS) is a global leader in the office furniture industry, focusing on providing innovative workspace solutions that enhance productivity and collaboration. Founded in 1912 and headquartered in Grand Rapids, Michigan, Steelcase operates in various sectors, including commercial office, education, healthcare, and government. The company's core products encompass office furniture, seating, desks, and workstations, as well as technology integration solutions designed to create adaptable and efficient work environments.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.17B	3.16B	3.23B	2.77B	2.60B
Gross Profit	1.05B	1.01B	919.40M	761.50M	762.80M
EBITDA	240.70M	216.60M	170.00M	110.50M	174.20M
Net Income	120.70M	81.10M	35.30M	4.00M	26.10M
Balance Sheet
Total Assets	2.33B	2.24B	2.20B	2.26B	2.35B
Cash, Cash Equivalents and Short-Term Investments	387.90M	318.60M	90.40M	200.90M	489.80M
Total Debt	600.70M	630.00M	695.80M	708.90M	727.20M
Total Liabilities	1.38B	1.35B	1.38B	1.41B	1.39B
Stockholders Equity	951.70M	887.10M	826.20M	852.20M	960.50M
Cash Flow
Free Cash Flow	101.40M	261.60M	30.30M	-163.10M	23.50M
Operating Cash Flow	148.50M	308.70M	89.40M	-102.60M	64.80M
Investing Cash Flow	-34.80M	6.10M	-134.80M	-65.50M	-30.60M
Financing Cash Flow	-84.00M	-85.90M	-62.90M	-120.00M	-87.80M

Steelcase Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCS, the sentiment is Positive. The current price of 16.66 is above the 20-day moving average (MA) of 15.63, above the 50-day MA of 12.57, and above the 200-day MA of 11.57, indicating a bullish trend. The MACD of 1.24 indicates Positive momentum. The RSI at 75.76 is Negative, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCS.

Steelcase Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNI	76 Outperform	$2.05B	14.45	18.50%	2.98%	-0.83%	28.96%
SCS	75 Outperform	$1.91B	16.11	12.87%	2.40%	2.64%	37.59%
AVY	70 Outperform	$13.51B	19.70	31.68%	2.07%	1.66%	14.38%
ACCO	67 Neutral	$353.32M	8.13	7.32%	7.56%	-8.80%	―
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
CDRE	61 Neutral	$1.25B	33.08	12.06%	1.20%	7.66%	-9.96%
XMTR	54 Neutral	$2.45B	―	-21.02%	―	20.19%	-12.34%

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.