Steelcase Story

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SCS -- USA Stock  

USD 13.20  0.17  1.27%

While many traders are getting carried away by overanalyzing industrials space, it is reasonable to sum up Steelcase. We will try to explain if it is still possible for Steelcase to generate above-average margins. Is the firm valuation justified? Here we go over Steelcase perspective on valuation to give you a better outlook on taking a position in this stock.
Published over three months ago
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What are the chances of Steelcase (NYSE:SCS) to fall in October?
Steelcase has 974.6 M in debt with debt to equity (D/E) ratio of 1.11, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Steelcase has an asset utilization ratio of 186.88 percent. This connotes that the company is making $1.87 for each dollar of assets. An increasing asset utilization means that Steelcase is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Steelcase using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Steelcase based exclusively on its fundamental and basic technical indicators. By analyzing Steelcase's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Steelcase's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Steelcase. We calculate exposure to Steelcase's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Steelcase's related companies.

Steelcase Investment Alerts

Steelcase investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Steelcase performance across your portfolios.Please check all investment alerts for Steelcase

Steelcase Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Steelcase value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Steelcase competition to find correlations between indicators driving the intrinsic value of Steelcase.

How Steelcase utilizes its cash?

To perform a cash flow analysis of Steelcase, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Steelcase is receiving and how much cash it distributes out in a given period. The Steelcase cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Steelcase Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Steelcase reported last year Net Cash Flow from Operations of 324.72 Million

An Additional Perspective On Steelcase

The entity reported the last year's revenue of 3.38 B. Total Income to common stockholders was 139.5 M with profit before taxes, overhead, and interest of 1.22 B.

Margins Breakdown

Steelcase profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Steelcase itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Steelcase profit margins.
Profit Margin
Operating Margin
Operating Margin7.45
EBITDA Margin7.63
Gross Margin30.24
Profit Margin5.79

Steelcase Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 6 years. Moreover, Steelcase Enterprise Value is decreasing over the last 6 years. The previous year's value of Steelcase Enterprise Value was 2,178,236,404.

Our take on today Steelcase spike

Steelcase sortino ratio is up to -0.01. Steelcase shows above-average downside volatility for the selected time horizon. We advise investors to inspect Steelcase further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Steelcase future alpha.

Our Conclusion on Steelcase

While some other firms under the business equipment & supplies industry are still a bit expensive, Steelcase may offer a potential longer-term growth to retail investors. To sum up, as of the 22nd of September 2020, our analysis shows that Steelcase almost neglects market trends. The enterprise is overvalued and projects below average probability of financial unrest for the next 2 years. Our concluding 30 days buy-or-sell advice on the enterprise is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Steelcase. Please refer to our Terms of Use for any information regarding our disclosure principles.

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