Steelcase Inc.
Steelcase Inc. Fundamental Analysis
Steelcase Inc. (SCS) shows weak financial fundamentals with a PE ratio of 25.12, profit margin of 3.09%, and ROE of 7.75%. The company generates $2.4B in annual revenue with weak year-over-year growth of -2.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCS's fundamental strength across five key dimensions:
Efficiency Score
WeakSCS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSCS shows balanced valuation metrics.
Growth Score
WeakSCS faces weak or negative growth trends.
Financial Health Score
ExcellentSCS maintains a strong and stable balance sheet.
Profitability Score
WeakSCS struggles to sustain strong margins.
Key Financial Metrics
Is SCS Expensive or Cheap?
P/E Ratio
SCS trades at 25.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCS's PEG of -1.18 indicates potential undervaluation.
Price to Book
The market values Steelcase Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.29 times EBITDA. This is generally considered low.
How Well Does SCS Make Money?
Net Profit Margin
For every $100 in sales, Steelcase Inc. keeps $3.09 as profit after all expenses.
Operating Margin
Core operations generate 3.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.75 in profit for every $100 of shareholder equity.
ROA
Steelcase Inc. generates $3.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steelcase Inc. generates limited operating cash flow of $-78.93M, signaling weaker underlying cash strength.
Free Cash Flow
Steelcase Inc. generates weak or negative free cash flow of $-121.11M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.06 in free cash annually.
FCF Yield
SCS converts -6.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SCS Stacks Against Its Sector Peers
| Metric | SCS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.12 | 26.09 | Neutral |
| ROE | 7.75% | 1258.00% | Weak |
| Net Margin | 3.09% | -33493.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.73 | Neutral |
| Current Ratio | 1.66 | 10.37 | Neutral |
| ROA | 3.24% | -1482877.00% (disorted) | Weak |
SCS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steelcase Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.13%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-32.76%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
145.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth