Back to top

Are Investors Undervaluing Steelcase (SCS) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Steelcase (SCS - Free Report) . SCS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.38 right now. For comparison, its industry sports an average P/E of 14.57. Over the past 52 weeks, SCS's Forward P/E has been as high as 17.79 and as low as 12.66, with a median of 13.99.

Another notable valuation metric for SCS is its P/B ratio of 2.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.25. Within the past 52 weeks, SCS's P/B has been as high as 2.65 and as low as 1.89, with a median of 2.05.

Finally, investors should note that SCS has a P/CF ratio of 12.62. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SCS's current P/CF looks attractive when compared to its industry's average P/CF of 12.66. Over the past year, SCS's P/CF has been as high as 13.75 and as low as 8.92, with a median of 11.04.

These are just a handful of the figures considered in Steelcase's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SCS is an impressive value stock right now.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Steelcase Inc. (SCS) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in