2024-06-05 02:42:31 ET
Summary
- Steelcase long-term growth has been mediocre, and remote work now further threatens long-term demand.
- While the company currently faces some pressure from the macroeconomic environment, Steelcase is relatively stable and works with different demand trends than consumer-oriented furnishings companies.
- A recovery should aid demand and margins slightly, but a recovery into the pre-pandemic level seems to need pricing and cost savings initiatives that Steelcase has started.
- Considering the long-term growth trend and weak margins, the stock's current valuation seems balanced, with some upside if margin initiatives are successfully implemented and sales jump slightly.
Steelcase ( SCS ) sells furnishing and architectural products under brands such as the company-named Steelcase, AMQ, Coalesse, HALCON, Orangebox, and others, as a wide portfolio of brands has been built by a history of acquisitions. The company focuses on selling to offices, as the company offers products such as office chairs, adjustable desks, specialty seating, height walls, and architectural pods....
Read the full article on Seeking Alpha
For further details see:
Steelcase: Only Modest Upside Remains