We believe Steel case stock (NYSE: SCS) is a designer, marketer, and manufacturer of office furniture and complementary products and services, and is a good buying opportunity at this time. SCS stocks are currently trading at close to $ 13, actually down 35% from their pre-Covid high of $ 19 in February 2020 before the coronavirus pandemic hit the world. SCS shares have been volatile since early 2020 as Covid-19’s telecommuting environment was unfriendly to the company. Steelcase expects revenue and revenue to decline dramatically in 2020 and improve slightly in 2021. The company’s share price rose 34% from the level of about $ 9 on March 23, 2020, when the broader market bottomed out, to the current level of about $ 13, but SCS shares are compared to the market as a whole. The performance was calm. However, the company’s share price still seems attractive at current prices. We have already invested in education and healthcare, as well as regional investment in the Asia Pacific region, and are expected to drive overall demand in the workspace products industry in the future.
In the last second quarter, Steelcase’s revenue fell 11.5% year-on-year due to shipping delays due to supply chain disruptions. By segment, North and South America revenues were down 17%, while EMEA revenues were up 10% and the other categories were up 1%. Please note that the total number of orders increased by 24% year-on-year. Orders also increased by 26% in the Americas, 23% in EMEA and 15% in other categories. Overall, the company has total liquidity of $ 530.5 million, which consists of cash, cash equivalents, and company-owned life insurance surrenders, while total liabilities are $ 484.5 million. The quarter has ended.
SCS stocks were fluctuating during the current Covid-19 crisis, but what about the 2008 crisis?This note focuses on comparative analysis of Steelcase inventory during the 2008 recession and now With interactive dashboard analysis.
Past Covid-19 Crisis Timeline:
- December 12, 2019: First reported case of coronavirus in China
- January 31, 2020: WHO declares a global health emergency.
- February 19, 2020: S & P 500 hits record high with signs of effective containment in China and expectations of monetary easing by major central banks
- March 23, 2020: S & P 500 will drop 34% from the peak level seen on February 19, 2020 as cases of COVID-19 accelerate outside China.Doesn’t help oil prices plummet in mid-March in Saudi-led price competition
- After March 24, 2020: The S & P 500 has recovered 95% from the lows seen on March 23, 2020, during the long-term blockade and vaccination promotion by the Fed’s multi-billion dollar stimulus package. , The economy keeps ups and downs and things can gradually come back closer. -Normal condition despite some waves of Covid infection.
- September 28, 2021: 55.8% of the US population is fully vaccinated with Covid-19.
In contrast, here’s how SCS stocks and the wider market progressed during the 2007-08 crisis.
2007-08 crisis timeline
- October 1, 2007: Approximate pre-crisis peak of the S & P 500 Index
- September 1, 2008 – October 1, 2008: Accelerating market decline in response to Lehman bankruptcy filing (September 15, 2008)
- March 1, 2009: Approximate bottoming out of S & P 500 index
- December 31, 2009: First recovery to levels before accelerating decline (around September 1, 2008)
Steelcase and S & P 500 Performance during the 2007-08 Financial Crisis
SCS stock prices fell from around $ 19 in October 2007 (pre-crisis peak in the broader market) to around $ 11 in September 2008 and another $ 4 in March 2009. (Because the market has bottomed out). This means that SCS’s share price has fallen 79% from the October 2007 level. In addition, it had recovered to around $ 6 by the end of 2009, reflecting growth of 58% from the bottom. By comparison, the S & P 500 Index fell 51% from its peak in September 2007 to its bottom in March 2009, with a sharp recovery of 48% by January 2010.
The basics of Steelcase in recent years
Steelcase’s revenue fell 16% over the last 12 months to $ 2.6 billion, compared to $ 3.1 billion in 2018, primarily due to the impact of the Covid-19 pandemic on overall sales. .. The company’s earnings per share have shrunk to just 4 cents in the last 12 months, compared to 68 cents in 2018. This can be due to reduced revenue and reduced margins.
Does Steelcase have enough cash cushions to meet its obligations?
Steelcase’s total debt increased from $ 295 million in 2018 to $ 484 million in the last 12 months, while total cash increased 40% from $ 283 million over the same period. That’s $ 361 million. The company has enough liquidity cushions to meet its short-term obligations.
Covid-19 Crisis Phase:
- Early to mid-March 2020: The fear of a rapid spread of the coronavirus epidemic has become a reality, and the number of cases is accelerating worldwide.
- After late March 2020: Social distance measures + blockade
- April 2020: Federal Stimulation Curbs Short-Term Survival Anxiety
- May-June 2020: Gradually Unblocked Demand Recovery-Despite Steady Increase in Cases, No more Panic
- After late 2020: Quarterly results are weak, but continued improvement in demand and progress in sentiment in the vaccine development buoy market
- Large-scale Covid-19 vaccination programs have been implemented in several countries since the second quarter of 2021, and currently 55.8% of the US population is fully vaccinated.
Given the steady decline in Number of new Covid-19 cases in the United StatesDemand is expected to improve to raise market expectations. Investors are paying close attention to the expected outcomes of 2021, and believe that Steelcase shares could rise significantly as concerns over the outbreak of Covid ease.
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See all Trephis Price quoteWe believe Steel case stock (NYSE: SCS) is a designer, marketer, and manufacturer of office furniture and complementary products and services, and is a good buying opportunity at this time. SCS stocks are currently trading at close to $ 13, actually down 35% from their pre-Covid high of $ 19 in February 2020 before the coronavirus pandemic hit the world.