Steelcase Inc. designs, manufactures, and distributes an integrated portfolio of furniture settings, user-centered technologies, and interior architectural products. The company was founded in 1912 and is based in Grand Rapids, Michigan.
SCS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SCS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Steelcase Inc ranked in the 81th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Steelcase Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 9.98 -- which is good for besting 70.27% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Steelcase Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.02% of tickers in our DCF set.
SCS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 10.02% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SCS, try CMCO, USDP, SB, EML, and DY.
Steelcase Inc said on Tuesday that it recalled most of its manufacturing employees globally who were furloughed due to restrictions imposed to curb the spread of the COVID-19 pandemic. "In the U.S., the company has eased the pay and hour reductions for most of its salaried employees from 50% to 20%," Steelcase said. The company also eased reductions in base pay for its chief executive officer from a $1 annual salary to a 50% base pay reduction and for its other executives to 20% cut from 60%.
Steelcase Inc. said Tuesday it was recalling most of its manufacturing employees that were furloughed, as government restrictions related to the COVID-19 pandemic have begun to ease. The maker of furniture settings and interior architectural products said all of its manufacturing and distribution locations are currently open, and many showrooms are beginning to reopen. Steelcase said it was easing the reductions in pay and work hours for employees that were implemented in March and April. The company said revenue for the March-April period fell 39% from a year ago, with March revenue down 21% and April revenue down 60%. The FactSet consensus for fiscal first-quarter revenue, which runs through May, of $546 million implies a 34% decline. The stock, which was still inactive in premarket ...
Steelcase Inc. (SCS) announced today it has called back most of its manufacturing workforce from temporary layoffs as government restrictions related to the COVID-19 pandemic are beginning to ease. All of the company’s manufacturing and distribution locations around the world are open, with some locations in the process of scaling up capacity levels and a few locations continuing to be subject to government restrictions that prevent them from operating at normal capacity. As of May 1, 2020, the company’s backlog of customer orders was approximately $700 million, or approximately 23% higher than the prior year, as government mandates significantly limited the company’s ability to manufacture products and fulfill orders throughout much of the world over the last two months.