Steelcase Story

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SCS -- USA Stock  

USD 14.24  0.05  0.35%

It seems Steelcase may not recover as fast as we have hopped for as its price went down 3.69% today. The company current daily volatility is 2.67 percent, with a beta of -0.16 and an alpha of 0.22 over DOW. As some retail investors are moving away from the latest market volatility spike, we are going to sum up Steelcase based on how it reacts to economic swings. What exactly are Steelcase shareholders getting in April?
Published over two weeks ago
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Are Steelcase (NYSE:SCS) retail investors starting to panic?
Steelcase has roughly 484.4 M in cash with 179.2 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.22.
Our advice tool can cross-verify current analyst consensus on Steelcase and to analyze the firm potential to grow in the current economic cycle.
Investing in Steelcase, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Steelcase along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Steelcase's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Steelcase in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Steelcase. Your research has to be compared to or analyzed against Steelcase's peers to derive any actionable benefits. When done correctly, Steelcase's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Steelcase.

How important is Steelcase's Liquidity

Steelcase financial leverage refers to using borrowed capital as a funding source to finance Steelcase ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Steelcase financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Steelcase's total debt and its cash.

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 Correlation with Peers

Investors in Steelcase can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Steelcase. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Steelcase and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Steelcase is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Steelcase for more details

Is Steelcase valued sensibly by the market?

Steelcase appears to be somewhat reliable, given 1 month investment horizon. Steelcase owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.11, which indicates the firm had 0.11% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Steelcase, which you can use to evaluate future volatility of the company. Please operate Steelcase Coefficient Of Variation of 1354.81, risk adjusted performance of 0.0686, and Semi Deviation of 2.57 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Steelcase fall

The expected short fall is down to -2.61 as of today. Steelcase currently demonstrates below-average downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.22. However, we advise investors to further question Steelcase expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Steelcase's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Steelcase's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Steelcase

While some other firms within the business equipment & supplies industry are still a little expensive, even after the recent corrections, Steelcase may offer a potential longer-term growth to retail investors. While some retail investors may not share our view, we believe that right now is not a good time to increase your holdings in Steelcase. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Steelcase.

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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