Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 2.51%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.10
• 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: 1,065,001
• 30 Day Avg. Volume: 1,548,662
• 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: 1.25
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 10.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $18.50 ▲(10.98% 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. (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	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: 16.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 16.67 is above the 20-day moving average (MA) of 16.65, below the 50-day MA of 16.69, and above the 200-day MA of 12.47, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.13 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
EBF	―	$424.17M	10.17	12.71%	6.06%	-3.92%	3.04%
SCS	―	$1.83B	20.12	9.46%	2.51%	3.92%	-24.47%
AVY	―	$13.60B	20.01	30.21%	2.00%	1.03%	5.52%
HNI	―	$1.90B	13.89	16.83%	3.24%	1.15%	16.20%
ACCO	―	$352.42M	8.11	7.32%	7.25%	-8.80%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	―	$1.07B	-62.59	-1.18%	4.39%	5.37%	-127.27%

Steelcase Corporate Events

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.

The most recent analyst rating on (SCS) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Steelcase stock, see the SCS Stock Forecast page.

Steelcase Achieves Record Growth Amidst EMEA Challenges

Steelcase’s recent earnings call painted a picture of robust performance, with record revenue and earnings growth, primarily fueled by large corporate customers and improved profitability. Despite these achievements, the company faces challenges in the EMEA region and with education customers, alongside restructuring costs.

Steelcase Reports Growth Amid Strategic Developments

Steelcase Inc., a global leader in the design and manufacturing of furniture and architectural solutions for work environments, reported its second quarter fiscal 2026 results, showcasing growth in revenue and strategic developments within the company.

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.

The most recent analyst rating on (SCS) stock is a Hold with a $18.30 price target. To see the full list of analyst forecasts on Steelcase stock, see the SCS Stock Forecast page.

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.

The most recent analyst rating on (SCS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Steelcase stock, see the SCS Stock Forecast page.