Steelcase Inc. (SCS) | Investment Case

1. Company Snapshot

1.a. Company Description

Steelcase Inc.provides a portfolio of furniture and architectural products in the United States and internationally.It operates through Americas, EMEA, and Other segments.

The company's furniture portfolio includes furniture systems, seating, storage, fixed and height-adjustable desks, benches, and tables, as well as complementary products, such as work accessories, lighting, and mobile power and screens.Its seating products comprise task chairs; seating for collaborative environments and casual settings; and specialty seating for specific vertical markets, including education and healthcare.The company's interior architectural products comprise full and partial height walls and architectural pods.

It also provides textiles, wall coverings, and surface imaging solutions for architects and designers; and workplace strategy consulting, lease origination, and furniture and asset management services.The company markets and sells its products to corporate, government, healthcare, education, and retail customers under the Steelcase, Designtex, Coalesse, AMQ, Smith System, Orangebox, and Viccarbe brands.It distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers.

The company was founded in 1912 and is headquartered in Grand Rapids, Michigan.

Show Full description

1.b. Last Insights on SCS

The recent 3-month performance of Steelcase Inc. was negatively impacted by the imposition of new tariffs on furniture retailers, as investors worry that years of efforts to avoid tariffs will now be in vain. This development has led to a decline in furniture-retailer stocks, including Steelcase. Additionally, the company's supply-chain moves have failed to dodge the new tariffs, further exacerbating the negative sentiment.

1.c. Company Highlights

Last Price	16.14
Change Percentage	-0.55%
Open	16.2
Previous Close	16.23
Market Cap ( Millions)	1852
Volume	463405
Year High	17.4
Year Low	9.32
M A 50	16.33
M A 200	13.18

FCF Yield	-2.01%
Dividend Yield	2.48%
ROE	9.82%
Debt / Equity	61.05%
Net Debt / EBIDTA	187.85%
Price To Book	1.88
Price Earnings Ratio	20.09
Price To FCF	-49.64
Price To sales	0.57
EV / EBITDA	10.49

2. Steelcase's Q2 FY2026 Results Exceed Expectations

Steelcase reported a robust financial performance in the second quarter of fiscal 2026, with revenue reaching $897 million, surpassing the estimated range, and adjusted earnings per share coming in at $0.45, significantly above the estimated $0.37. The company's adjusted operating margin improved by 40 basis points to 8.4% compared to the prior year. Organic revenue growth stood at 4%, driven primarily by strong performances in India, China, and the U.K., which offset the continued weakness in Germany and France. The earnings per share (EPS) beat is particularly noteworthy, indicating a positive surprise in the company's profitability.

Publication Date: Oct -28

                                    📋 Highlights
                                    Revenue & Earnings Outperform:
                                                Revenue reached $897 million, exceeding estimates, with adjusted earnings at $0.45 per share.
International Segment Surge:
                                                13% revenue growth driven by India, China, and the U.K., despite weakness in Germany and France.
Americas Growth Accelerates:
                                                8% orders growth in the Americas led by large corporate customers, offsetting declines in Europe.
Margin Improvement:
                                                Adjusted operating margin rose 40 basis points to 8.4%, despite $10 million in restructuring costs.
Future Merger Anticipation:
                                                Steelcase highlighted strategic momentum with plans to merge with HNI, signaling a strong future outlook.

                                

Segmental Performance

The Americas segment led the growth, with revenue increasing by 8%, driven by strong demand from large corporate customers. The International segment also posted a 13% revenue growth, with particularly strong results from India. Orders grew by 6% in the second quarter, driven by an 8% growth in the Americas, while orders in Germany and France declined due to ongoing macroeconomic challenges.

Operational Highlights and Outlook

Steelcase is well-positioned to capitalize on the trend of companies investing in offices that support higher levels of connection, creativity, and performance. The company incurred $10 million of restructuring costs in the International segment, primarily related to the exit of salaried employees in EMEA. The anticipated merger with HNI is expected to further strengthen the company's future prospects.

Valuation Metrics

With a P/E Ratio of 20.7 and an EV/EBITDA of 10.76, the market appears to have priced in a certain level of growth for Steelcase. Analysts estimate next year's revenue growth at 4.2%, which is slightly higher than the current year's organic revenue growth. The ROE of 9.82% and ROIC of 6.41% indicate a decent return on equity and invested capital, respectively. The Dividend Yield stands at 2.41%, providing a relatively stable return for investors.

3. NewsRoom

Steelcase Inc. $SCS Shares Sold by Bank of New York Mellon Corp

Nov -21

Source: defenseworld.net

$HAREHOLDER ALERT: The M&A Class Action Firm Continues To Investigate Merger--AL, HNI, SCS, and ODP

Nov -05

Source: prnewswire.com

Ionik Announces Sale of SCS Subsidiary

Oct -31

Source: newsfilecorp.com

Is Steelcase (SCS) Outperforming Other Business Services Stocks This Year?

Oct -17

Source: zacks.com

Press release: NEW SHARE CAPITAL AMOUNT AND NEW NUMBER OF SHARES ISSUANCE OF A NEW SUBSCRIPTION REQUEST NOTICE UNDER THE SHARE SUBSCRIPTION FACILITY AGREEMENT WITH GEM

Oct -16

Source: globenewswire.com

All You Need to Know About Steelcase (SCS) Rating Upgrade to Strong Buy

Oct -09

Source: zacks.com

Best Momentum Stocks to Buy for October 9th

Oct -09

Source: zacks.com

New Strong Buy Stocks for October 9th

Oct -09

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Americas

Expected Growth: 3.0%

Steelcase Inc.'s 3.0% growth in Americas is driven by increasing demand for hybrid workspaces, rising investments in office renovations, and growing adoption of ergonomic furniture. Additionally, the company's strategic partnerships and expanding product portfolio are contributing to its growth in the region.

International

Expected Growth: 3.0%

Steelcase Inc.'s 3.0% international growth is driven by increasing demand for office furniture in emerging markets, particularly in Asia and Latin America. Expansion into new markets, strategic partnerships, and investments in e-commerce platforms also contribute to growth. Furthermore, the company's focus on innovative and sustainable products resonates with environmentally conscious consumers, driving sales.

7. Detailed Products

Seating

Steelcase offers a wide range of seating solutions, including task chairs, stools, and lounge seating, designed to promote comfort, productivity, and well-being.

Desking

Steelcase desking solutions include height-adjustable desks, benching systems, and private offices, designed to support individual and team productivity.

Storage

Steelcase storage solutions include filing cabinets, shelving units, and modular storage systems, designed to optimize space and organization.

Acoustic Solutions

Steelcase acoustic solutions include sound-absorbing panels, phone booths, and quiet rooms, designed to reduce distractions and improve focus.

Technology Integration

Steelcase technology integration solutions include power and data solutions, cable management systems, and audio-visual integration, designed to support technology-enabled workspaces.

Space Planning and Design

Steelcase space planning and design services provide customized workspace solutions, including layout design, furniture specification, and installation.

8. Steelcase Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Steelcase Inc. faces moderate threat from substitutes, as customers have limited alternatives for high-quality office furniture and technology solutions.

Bargaining Power Of Customers

Steelcase Inc. has a diverse customer base, which reduces the bargaining power of individual customers, and the company's strong brand reputation and product offerings also limit customer negotiating power.

Bargaining Power Of Suppliers

Steelcase Inc. has a diverse supplier base, and the company's large scale of operations gives it bargaining power over suppliers, reducing the risk of supplier concentration.

Threat Of New Entrants

The office furniture and technology solutions industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, which limits the threat of new entrants.

Intensity Of Rivalry

The office furniture and technology solutions industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.65%
Debt Cost	5.43%
Equity Weight	64.35%
Equity Cost	10.46%
WACC	8.67%
Leverage	55.39%

11. Quality Control: Steelcase Inc. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ennis

A-Score: 6.7/10

Value: 7.2

Growth: 4.1

Quality: 7.2

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

HNI

A-Score: 5.7/10

Value: 7.3

Growth: 4.6

Quality: 5.6

Yield: 6.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

ACCO Brands

A-Score: 5.6/10

Value: 9.2

Growth: 1.8

Quality: 5.6

Yield: 9.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

Steelcase

A-Score: 5.5/10

Value: 6.9

Growth: 4.6

Quality: 4.5

Yield: 7.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

Apogee Enterprises

A-Score: 4.7/10

Value: 6.3

Growth: 6.1

Quality: 4.7

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

20.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.67%

Steelcase Inc. - US8581552036

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SCS

1.c. Company Highlights

Higher Yield

Strong Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Lower Growth

Cheaper

Stable Momentum

Weak Momentum

Medium Volatility

Average Quality

More Volatile

2. Steelcase's Q2 FY2026 Results Exceed Expectations

Segmental Performance

Operational Highlights and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Americas

Expected Growth: 3.0%

International

Expected Growth: 3.0%

7. Detailed Products

Seating

Desking

Storage

Acoustic Solutions

Technology Integration

Space Planning and Design

8. Steelcase Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Steelcase Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.14$

Current Price

16.14$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA