Steelcase (SCS) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 3.8%
• Average Volume (3M): 581.30K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.67
• Revenue Growth: 0.20%
• EPS Growth: 50.50%
• Country: US
• Employees: 11,300
• Sector: Industrials
• Sector Strength: 93
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.26
• Shares Outstanding: 95,425,950
• 10 Day Avg. Volume: 625,302
• 30 Day Avg. Volume: 581,299
• PEG Ratio: 1.31
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.50
• 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: 63.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $11.50 ▲(10.90%Upside)

Steelcase's overall stock score reflects robust financial health and attractive valuation. Strong fiscal performance, especially in the Americas, and positive guidance for fiscal 2026 contribute positively. However, challenges in international markets and declining cash flow require attention. Technical indicators show mixed trends.

Steelcase Business Overview & Revenue Model

Company Description

Steelcase Inc. (SCS) is a leading provider in the furniture industry, specializing in the design and manufacture of innovative workplace solutions. The company offers a wide range of products including office furniture, architectural and technology products designed to create high-performance work environments. Steelcase operates across various sectors, providing solutions for offices, education, and healthcare settings, aiming to enhance productivity and well-being through highly adaptable and sustainable designs.

How the Company Makes Money

Steelcase makes money primarily through the sale of its furniture and workplace solutions, which include seating, desks, storage, and collaborative tools. The company generates revenue from direct sales to businesses and institutions, as well as through a network of dealers and retail partners. Additionally, Steelcase earns income from its architectural and technology products, which integrate furniture with technology to create smart office environments. The company's earnings are augmented by significant partnerships with design firms and technology companies, which help Steelcase to innovate and expand its product offerings. Steelcase's focus on sustainable and ergonomic designs also appeals to the growing market demand for environmentally friendly and user-centric office solutions.

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
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
	EBIT
158.10M	117.80M	95.70M	20.10M	87.20M
	EBITDA
240.70M	216.60M	165.30M	87.20M	174.20M
	Net Income Common Stockholders
120.70M	81.10M	35.30M	4.00M	26.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
387.90M	318.60M	90.40M	200.90M	489.80M
	Total Assets
2.33B	2.24B	2.20B	2.26B	2.35B
	Total Debt
600.70M	630.00M	695.80M	708.90M	727.20M
	Net Debt
254.40M	311.40M	605.40M	508.00M	237.40M
	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: 10.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 10.37 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.28, and below the 200-day MA of 11.81, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.94 is Neutral, 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
CDRE	75 Outperform	$1.37B	35.76	13.07%	1.09%	10.06%	-7.56%
HNI	74 Outperform	$2.20B	16.88	17.23%	2.83%	-0.18%	107.68%
SCS	72 Outperform	$1.21B	10.37	12.70%	3.80%	0.20%	50.50%
AVY	71 Outperform	$14.04B	20.67	31.95%	1.97%	3.57%	26.92%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
XMTR	60 Neutral	$1.74B	―	-15.50%	―	19.35%	27.83%
ACCO	57 Neutral	$328.86M	―	-15.90%	8.22%	-9.19%	-337.72%

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.