Steelcase (SCS) AI Stock Analysis

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Steelcase

(NYSE:SCS)

71Outperform

Steelcase demonstrates solid financial performance with consistent revenue growth and profitability. Its undervaluation and attractive dividend yield make it appealing to investors. However, technical indicators suggest caution due to bearish trends. Positive earnings call sentiment and strategic growth plans in the Americas support the stock's outlook, while international challenges and trade uncertainties persist.

Steelcase (SCS) vs. S&P 500 (SPY)

Market Cap

$1.13B

Dividend Yield4.04%

Average Volume (3M)836.57K

Price to Earnings (P/E)9.8

Beta (1Y)0.68

Revenue Growth0.20%

EPS Growth50.50%

CountryUS

Employees11,300

SectorIndustrials

Sector Strength82

IndustryBusiness Equipment & Supplies

Share Statistics

EPS (TTM)0.26

Shares Outstanding95,323,074

10 Day Avg. Volume566,516

30 Day Avg. Volume836,569

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.46

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.58

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.00

Price Target Upside62.52% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Steelcase Business Overview & Revenue Model

Company DescriptionSteelcase Inc. (SCS) is a global leader in the office furniture industry, specializing in the design and manufacture of innovative furniture solutions for workspaces. The company operates across various sectors including corporate, healthcare, and education, offering an extensive range of products such as seating, desks, tables, storage solutions, and collaborative tools. With a focus on sustainability and ergonomic design, Steelcase aims to enhance productivity and well-being in work environments.

How the Company Makes MoneySteelcase generates revenue primarily through the sale of its office furniture and related products. The company's key revenue streams include direct sales to businesses, government organizations, educational institutions, and healthcare facilities. Steelcase also collaborates with a network of authorized dealers and distributors to expand its market reach. Additionally, the company offers consultancy services for workspace design and planning, contributing to its earnings. Significant partnerships with architects, designers, and technology firms further enhance Steelcase's product offerings and market presence, supporting its revenue growth.

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

Positive

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

Positive

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

Positive

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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

Neutral

Last Price10.46

Price Trends

50DMA

10.54

Negative

100DMA

11.13

Negative

200DMA

12.03

Negative

Market Momentum

MACD

-0.09

Negative

RSI

55.30

Neutral

STOCH

73.59

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 10.46 is above the 20-day moving average (MA) of 9.95, below the 50-day MA of 10.54, and below the 200-day MA of 12.03, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 73.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCS.

Steelcase Risk Analysis

Steelcase disclosed 17 risk factors in its most recent earnings report. Steelcase reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Steelcase Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCS	71 Outperform	$1.13B	9.82	12.70%	4.04%	0.20%	50.50%
CDRE	71 Outperform	$1.20B	33.24	13.07%	0.98%	10.06%	-7.56%
AVY	70 Outperform	$13.30B	19.67	31.95%	2.03%	3.57%	26.92%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
XMTR	63 Neutral	$1.55B	―	-15.50%	―	19.35%	27.83%
ACCO	57 Neutral	$321.65M	―	-15.90%	8.06%	-9.19%	-337.72%
HNI	55 Neutral	$2.04B	15.01	17.23%	2.85%	-0.18%	107.68%

* Industrials Sector Average

Performance Comparison

SCS

Steelcase

10.46

-2.29

-17.96%

ACCO

ACCO Brands

3.73

-1.11

-22.93%

AVY

Avery Dennison

172.20

-49.06

-22.17%

HNI

47.56

2.98

6.68%

XMTR

Xometry

30.50

13.96

84.40%

CDRE

Cadre Holdings

35.38

5.62

18.88%

Steelcase Earnings Call Summary

Earnings Call Date:Mar 26, 2025

(Q4-2025)

% Change Since: -0.38%|

Next Earnings Date:Jun 18, 2025

Earnings Call Sentiment Neutral

Steelcase reported strong fiscal 2025 results with growth in the Americas and improved margins, offset by challenges in the international segment and trade uncertainties. The company's strategic initiatives are progressing well, with positive demand signals supporting future growth.

Q4-2025 Updates

Positive Updates

Strong Fiscal 2025 Performance

Steelcase reported adjusted earnings per share of $1.12, exceeding the top end of their target range. They delivered an adjusted operating margin of 5%, with the Americas segment achieving 7%.

Order Growth and Market Share Gains

Fourth quarter order growth was 9%, led by 12% growth in the Americas. This marks the sixth consecutive quarter of year-over-year order growth in the Americas, with market share gains reported.

Improved Gross Margin

Steelcase achieved their 11th consecutive quarter of year-over-year gross margin expansion, improving over 500 basis points since fiscal 2022.

Positive Demand Signals

Increased office leasing activity in the US, with Q4 leasing up 24% versus Q3 and 23% year-over-year, marking the highest quarter in three years.

International Segment Improvement

The international segment showed improvement in the first half of the year, driven by cost reductions and positive demand signals from large and national accounts.

Cash Flow and Shareholder Returns

Steelcase generated $100 million in free cash flow and returned $84 million to shareholders.

Negative Updates

Revenue Decline

Fourth quarter revenue declined 5% organically, with a 3% decline in the Americas and a 10% decline in International, impacted by lower beginning backlog and unfavorable business mix.

International Segment Challenges

Despite some improvements, the International segment faced higher manufacturing costs, operating expenses, and a decline in small to midsize business, particularly in Germany, France, and India.

Tariff and Trade Uncertainty

Steelcase is facing new tariffs and global trade uncertainty, requiring pricing actions, inventory purchases, and supply chain shifts.

Company Guidance

During the Steelcase Fourth Quarter Fiscal 2025 Conference Call, the company reported strong financial performance with a full-year adjusted earnings per share of $1.12, surpassing their expectations. The adjusted operating margin for the year was 5%, with a notable 7% margin in the Americas. In the fourth quarter, Steelcase achieved a 9% order growth, led by a 12% increase in the Americas, marking the sixth consecutive quarter of year-over-year order growth in this region. The quarter also saw a 500 basis point improvement in gross margin since fiscal 2022. Revenue for the quarter reached $788 million, falling within the upper end of the projected range, and adjusted earnings per share for the quarter were $0.26, boosted by favorable tax items. Looking ahead to fiscal 2026, Steelcase targets mid-single-digit organic revenue growth, with a modest improvement in adjusted operating margin, despite facing challenges such as new tariffs and global trade uncertainties. The company plans capital expenditures and cloud computing costs of $70 million to $80 million, and it expects to break even in its International segment with anticipated profitability in the second half of the year.

Steelcase Corporate Events

Business Operations and StrategyFinancial Disclosures

Steelcase Reports Fiscal 2025 Results with Order Growth

Positive

Mar 26, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.