Every cloud has a silver lining, and Steelcase Inc. might just be that silver lining in the industrials sector. Despite a slight dip in quarterly revenue growth, the company's strong fundamentals paint a promising picture. With a book value of 7.65 and a price to book ratio of 1.58X, the stock appears undervalued. The company's operating margin stands at 0.03%, and it has a healthy working capital of $352.3M, indicating its ability to cover short-term liabilities. The company's cash flow from operations is robust at $308.7M, despite a net interest income loss of $25.9M. The debt to equity ratio is low at 0.97%, suggesting a balanced capital structure. With 97.46% of shares owned by institutions, the stock has strong backing. The target price of $16.67 suggests a potential upside from the current 50-day moving average of $12.89. Despite the challenges, Steelcase's solid financial health and the backing of institutional investors make it a viable investment opportunity in August. Acco Brands appears to be recovering faster than Steelcase, with its share price rising by 0.22% compared to Steelcase's 1.11%. Many traders are currently avoiding the commercial services and supplies sector, making it worthwhile to further examine Steelcase's position relative to Acco Brands and similar companies. We will delve into the competitive dynamics between Steelcase and Acco.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Steelcase. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Steelcase, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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. Financial leverage can amplify the potential profits to Steelcase's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Steelcase's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Steelcase's total debt and its cash.
Steelcase Gross Profit
Steelcase Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Steelcase previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Steelcase Gross Profit growth over the last 10 years. Please check Steelcase's
gross profit and other
fundamental indicators for more details.
Is Steelcase valued wisely by the market?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Steelcase revenue. Based on the latest financial disclosure, Steelcase reported 3.16
B of revenue.
This is 9.69% lower than that of the Commercial Services & Supplies sector and significantly higher than that of the
Industrials industry. The revenue for all United States stocks is 66.51% higher than that of Steelcase. As for Acco Brands we see revenue of 1.83
B, which is much higher than that of the Industrials
| Steelcase | 3.16 Billion |
| Sector | 0.0 |
| Acco | 1.83 Billion |
Every cloud has a silver lining, and Steelcase stock may just be that silver lining for investors this August. Despite a quarterly revenue growth of -0.03%, the company's strong cash flow from operations at $308.7M and a healthy current ratio of 1.31X indicate a robust financial health. The company's shares are currently trading at a price to earnings ratio of 38.64X, which, coupled with a target price of $16.67, suggests potential upside. However, investors should be mindful of the company's total risk alpha of -0.09 and a probability of bankruptcy at 13.97%. In conclusion, Steelcase presents a viable investment opportunity, but with a note of caution due to certain risk factors..
Will Steelcase continue to gain?
Despite Steelcase's recent coefficient of variation standing at -14990.94, suggesting high volatility, it's important to consider other factors. The company has demonstrated resilience and holds potential for continued growth. Investors should closely watch the company's forthcoming financial reports and market trends to evaluate Steelcase's ability to sustain its momentum. Steelcase's stock displays low volatility with a skewness of 0.95 and kurtosis of 4.39. Understanding market volatility trends can help investors time the market. Using volatility indicators effectively allows traders to assess Steelcase's stock risk against market volatility during both bullish and bearish trends.
The increased volatility associated with bear markets can directly affect Steelcase's stock price, causing investor stress as share values decline, often prompting portfolio rebalancing through the purchase of diverse financial instruments.In conclusion, Steelcase Inc. (SCS) stock presents a compelling investment opportunity in August. Analysts have a strong buy consensus on the stock, with one analyst giving it a strong buy rating. The potential upside is substantial, with the highest estimated target price standing at
$12.08, offering a significant premium over the current market valuation of
$12.74. Even the lowest estimated target price of $9.9 suggests limited downside risk. Investors should, however, remain cautious of the company's fiscal year end in February and monitor any changes in its valuation real value of $11.8 and naive expected forecast value of $12.59..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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