Is Steelcase Inc. (SCS) A Good Investment?


Steelcase Inc. (NYSE:SCS) traded with a subtraction of -$0.85 to $8.39 on Thursday, a downside of -9.20 percent. An average of 1,249,026 shares of common stock have been traded in the last five days. There was a fall of -$1.23 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 740,797 shares traded, while the 50-day average volume stands at 576,385.

SCS stock has decreased by -22.35% in the last month. The company shares reached their 1-month lowest point of $8.31 on 09/22/22. With the stock rallying to its 52-week high on 01/19/22, shares of the company touched a low of $9.12 and a high of $13.41 in 52 weeks. It has reached a new high 7 times so far this year and lost -21.16% or -$3.35 in price. In spite of this, the price is down -37.46% from the 52-week high.

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Insider Transactions

50 days have passed since Steelcase Inc. (SCS) last reported insider trading activity. O’Shaughnessy Lizbeth S, who is SVP, CAO, GC and Secretary, most recently acquired $30,000 shares at $11.26 per share on Aug 03. In this transaction, the insider spent $337,923. Director, Niemann Jennifer C, disposed of 3,900 shares at a price of $11.98 on Apr 27. The insider now owns more than $46,708 worth of shares.

Valuation Metrics

Steelcase Inc. (SCS) has a trailing price-to-earnings (P/E) ratio of 52.80. The stock’s beta is 1.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.36, the price-to-book (PB) ratio at 1.28.

The company has a payout ratio of 329.80%. The company’s most recent quarterly dividend payment was $0.1450 a share, without any change from last year. Its latest increase dividend $0.0450 reported on Wednesday June 23 2021.

Financial Health

The quick ratio of Steelcase Inc. for the three months ended August 30 was 0.90, and the current ratio was 1.60, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.55 and a total debt to equity ratio of 0.59 for the quarter ending August 30. Its gross profit as reported stood at $761.5 million compared to revenue of $2.77 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Steelcase Inc.’s return on assets was 0.90%.

Earnings Surprise

For the three-month period that ended August 30, Steelcase Inc. had $445.2 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$11.4 million in the quarter, while revenues of -$2.2 million were shrunk -146.49%. The analyst consensus anticipated Steelcase Inc.’s latest quarter earnings to come in at $0.13 per share, but it turned out to be $0.21, a 61.50% surprise. For the quarter, EBITDA amounted to $7.6 million. Shareholders own equity worth $112.76 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Steelcase Inc. (SCS) price momentum. RSI 9-day as of the close on 21 September was 13.07%, suggesting the stock is oversold, with historical volatility in this time frame at 67.17%.

As of today, SCS’s price is $9.12 -12.76% or -$1.23 from its 5-day moving average. SCS is currently trading -30.32% lower than its 20-day SMA and -28.60% lower than its 100-day SMA. However, the stock’s current price level is -21.88% below the SMA50 and -29.62% below the SMA200.

The stochastic %K and %D were 5.43% and 7.10%, respectively, and the average true range (ATR) was 0.47. With the 14-day stochastic at 1.96% and the average true range at 0.43, the RSI (14) stands at 18.72%. The stock has reached -0.81 on the 9-day MACD Oscillator while the 14-day reading was at -1.27.

Analyst Ratings

Sidoti downgraded Steelcase Inc. (NYSE: SCS) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Steelcase Inc. (SCS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SCS, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is SCS’s price target for the next 12 months?

Analysts predict a range of price targets between $12.00 and $16.00, with a median target of $14.00. Taking a look at these predictions, the average price target given by analysts for Steelcase Inc. (SCS) stock is $14.00.


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