SCS - Embedded Expectations Analysis - 2018 11 06
Steelcase Inc. (SCS:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Assets, with a 1.1x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may have concerns about EMEA orders growth, integrating and synergizing their acquisitions and partnerships, andindustry-wide outlook
Specifically, management may lack confidence in their ability to sustain strong
EMEA orders growth, and may be exaggerating customer demand for additional partnerships. They may also be exaggerating the success of their new partnership programs, and may lack confidence in their ability to drive revenue and earnings growth through these relationships. Additionally, they may be exaggerating collective outlook for their industry, and may lack confidence in their ability to drive growth from their project pipeline. Finally, they may lack confidence in their ability to effectively manage the new mix and business model as a result of their acquisitions, and to maintain lower claims costs going forward
Steelcase provides furniture settings, user-centered technologies and interior architectural products. The company's furniture portfolio includes panel, fence and beam-based furniture systems, storage, fixed and height-adjustable desks, benches and tables and complementary products. The company's seating products include task chairs and seating for specific vertical markets. The company's technology solutions support group collaboration by integrating furniture and technology. The company's interior architectural products include full and partial height walls and architectural pods. The company also provides services, including workplace strategy consulting, data-driven space measurement, and lease origination services.
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