Steelcase Inc (SCS, Financial), a leading player in the Industrial Products industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at $1.24 billion, with its stock price currently at $10.85. Over the past week, the stock price has seen a modest gain of 0.19%, but the real story lies in its three-month performance, where it has rallied by an impressive 26.67%.
When we look at the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Steelcase Inc is currently modestly undervalued with a GF Value of $13.07. This is a slight decrease from its past GF Value of $13.33 three months ago, when the stock was considered a possible value trap. This shift in valuation indicates a positive change in the company's stock performance.
Company Overview: Steelcase Inc
Steelcase Inc is a US-based furniture company with operations extending to Europe, the Middle East, and Africa. The company markets its products primarily through a network of independent and company-owned dealers. It operates through the Americas segment, the EMEA segment, and the Other category. The Americas segment, which generates the majority of the company's revenue, offers architecture, furniture, and technology products to corporate, government, healthcare, education, and retail customers. The EMEA segment provides furniture systems, storage, and seating solutions.
Profitability Analysis
Steelcase Inc's Profitability Rank stands at 7/10, indicating a strong profitability position compared to its industry peers. The company's operating margin is 3.82%, better than 34.71% of the companies in the industry. This ratio, calculated as Operating Income divided by its Revenue, is a key indicator of the company's pricing strategy and operating efficiency.
Furthermore, the company's ROE (Return on Equity) is 6.81%, better than 48.37% of the companies in the industry. This ratio, calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time, indicates the profitability of a corporation in relation to stockholders' equity. Similarly, the company's ROA (Return on Assets) is 2.53%, better than 39.78% of the companies in the industry. This ratio, calculated as Net Income divided by its average Total Assets over a certain period of time, gives an idea as to how efficiently management is using its assets to generate earnings. The company's ROIC (Return on Invested Capital), which measures how well a company generates cash flow relative to the capital it has invested in its business, is 4.80%, better than 42.49% of the companies in the industry.
Steelcase Inc has also demonstrated consistent profitability over the past decade, with 10 years of profitability, better than 99.96% of the companies in the industry.
Growth Prospects
Despite its strong profitability, Steelcase Inc's Growth Rank is a modest 3/10. The company's 3-Year Revenue Growth Rate per Share is -3.30%, better than 19.8% of the companies in the industry. Its 5-Year Revenue Growth Rate per Share is -1.30%, better than 24.79% of the companies in the industry. However, the company's future total revenue growth rate is estimated to be 0.12%, better than 10.29% of the companies in the industry.
On the earnings front, the company's 3-Year EPS without NRI Growth Rate is -43.50%, better than 6.28% of the companies in the industry. Its 5-Year EPS without NRI Growth Rate is -38.10%, better than 1.44% of the companies in the industry. However, the company's future EPS without NRI Growth Rate is estimated to be 10.00%, better than 40.24% of the companies in the industry.
Major Holders
Richard Pzena (Trades, Portfolio) is the largest holder of Steelcase Inc's stock, holding 9,925,860 shares, which represents 8.71% of the company's shares. Jeremy Grantham (Trades, Portfolio) holds the second-largest number of shares, with 123,087 shares, representing 0.11% of the company's shares. Jim Simons (Trades, Portfolio) holds the third-largest number of shares, with 94,100 shares, representing 0.08% of the company's shares.
Competitive Landscape
Steelcase Inc faces competition from several companies within the same industry. HNI Corp (HNI, Financial) is the largest competitor with a stock market cap of $1.56 billion. Ennis Inc (EBF, Financial) and ACCO Brands Corp (ACCO, Financial) are also significant competitors, with stock market caps of $541.557 million and $480.282 million, respectively.
Conclusion
In conclusion, Steelcase Inc's stock performance has been impressive over the past three months, with a significant surge in its stock price. The company's strong profitability, consistent profitability over the past decade, and modest growth prospects make it an interesting stock to watch. However, investors should also consider the competitive landscape and the company's modest growth rank when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
