Steelcase Story

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SCS -- USA Stock  

USD 13.93  0.59  4.06%

Steelcase Book Value per Share is relatively stable at the moment as compared to the past year. Steelcase reported last year Book Value per Share of 7.41. As of 12/17/2020, Dividend Yield is likely to grow to 0.21, while Average Equity is likely to drop slightly above 1.2 B. Even with relatively invariable essential indicators, Steelcase is not utilizing all of its potentials. The current stock price agitation, may contribute to a short-term swings for the retail investors. We currently estimate Steelcase as overvalued. The real value is approaching 11.20 per share.
Published over three months ago
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How invariable are Steelcase (NYSE:SCS) essential indicators given the latest spike?
Our advice tool can cross-verify current analyst consensus on Steelcase and to analyze the firm potential to grow in the current economic cycle. The company dividends can provide a clue to the current value of the stock. This firm one year expected dividend income is about $0.3 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Steelcase income statement, its balance sheet, and the statement of cash flows. Potential Steelcase investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Steelcase investors may use each financial statement separately, they are all related. The changes in Steelcase's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Steelcase's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Steelcase fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Steelcase performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Steelcase shares is the value that is considered the true value of the share. If the intrinsic value of Steelcase is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Steelcase.
Please read more on our fundamental analysis page.

Are Steelcase Earnings Expected to grow?

The future earnings power of Steelcase involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Steelcase factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Steelcase stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Steelcase expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Steelcase earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Steelcase dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Steelcase one year expected dividend income is about $0.2 per share.
Steelcase Dividend Yield is relatively stable at the moment as compared to the past year. Steelcase reported last year Dividend Yield of 0.19. As of 04/20/2021, Dividends per Basic Common Share is likely to grow to 2.92, while Payment of Dividends and Other Cash Distributions is likely to drop (308.2 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-300.3 M-308.2 M
Dividend Yield 0.19  0.21 
Dividends per Basic Common Share 2.70  2.92 
Investing in stocks that pay dividends, such as stock of Steelcase, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Steelcase must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Steelcase. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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

Steelcase Gross Profit

Steelcase Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Steelcase previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Steelcase Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Is Steelcase valued sensibly by the market?

Institutional investor usually refers to an organization that invests money in Steelcase on behalf of clients or other money managers. Buying and selling of large positions of Steelcase stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Steelcase stock. Let's take a look at how the ownership of Steelcase is distributed among investors.

Ownership Allocation

Steelcase shows a total of eighty-eight million ninety thousand outstanding shares. The majority of Steelcase outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Steelcase to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Steelcase. Please pay attention to any change in the institutional holdings of Steelcase as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.

Institutions
94.81%
Retail Investors0.63
Insiders4.56
Institutions94.81
 2013 2019 2020 (projected)
Consolidated Income170.3 M119.88 M129.34 M
Direct Expenses2.36 B2.51 B2.18 B

Asset Utilization

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 176.93 percent. This connotes that the company is making $1.77 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.

Current Assets
989.9 M
Assets Non Current
1.4 B
Current Assets989.95 Million34.21
Assets Non Current1.4 Billion48.27
Goodwill321.79 Million11.12
Tax Assets184.98 Million6.39

Anything left for Steelcase after the fall?

Value At Risk just dropped to -5.39, may connote upcoming price depreciation. 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.

The Bottom Line

While many other companies in the business equipment & supplies industry are either recovering or due for a correction, Steelcase may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 17th of December 2020, our concluding 30 days 'Buy-vs-Sell' recommendation on the enterprise is Cautious Hold. We believe Steelcase is currently overvalued with below average chance of financial distress for the next two years.

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 Raphi Shpitalnik do not own shares of Steelcase. Please refer to our Terms of Use for any information regarding our disclosure principles.

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