Steelcase, Inc. (SCS)

Upthumb. High price to cash flow. Negative free cash flow. Still have payout. Low 5 year sales growth rate. Low quick ratio. Low debt ratio, though. Low gross margins. Despite all this, it has engaged in rigorous cost cutting, beyond norms, that will likely result in some significant improvements in operating income and higher margins.

This stock is way underpriced. They are making adjustments to conserve capital. The business is set to boom.

#17 Best Corporate Citizen
http://www.business-ethics.com/node/75

Value play.

Steelcase are going through layoffs and reduction of costs in order to improve their profitability. Apart from that, it appears they have a solid business plan and continual improvement of product line.

On the financial, they have loads of cash, about 55% debt, revenues are 6 times the SCS market value, and the stock will pay a total dividend of 7% in 2009. Market value is currently below net equity although there are 277M$ of goodwill that may offset that.

In the last market downturn in 2002-2003 the stock didn't go below 8.5 $. In 2006-2007 it went around the 15 $ area.

Cost cutting in place, potential tender offer to go back to a private company in the future.

Book value is more than current price.

Coming off of a 52 week low.

38% of market cap is cover by cash.

Business will change with technology and the environment we work in will HAVE to change with it.

Remember when a 17" monitor was all we needed? Today because of the flood of information many places have "super sized" their desktops with 21"+ or double monitors. in our "paperless society" we still can't see the top of many desks. The change in our smaller desks means that we have to something will have to change so that the inefficiency stops.
Most workspaces look like an a disaster because the design isn't built around work but is built around fashion.

Steelcase is one of the few American companies that can make a difference. They have proved it in the past.

Company's debt is still rated investment grade and its dividend produces an impressive at 6.9 % yield despite being cut ln half last month, from 64 cents to 32 cents. The company has a agressive stock repurchase program in effect and is selling at only 7 times 2009 earnings estimates. They are pricing this like it is going broke. The company has $220 million in cash, only $250 million in long term debt and is selling at a 20% discount to book value. The company's price to sales ratio is a meager .18

This company is the Big Blue of the office furniture industry. Virtually debt free, large cash reserves, constant R&D even through tough times and with a terrific network of international dealers. Also, unlike major competitors, they support their dealers 100% and never sell direct to circumvent their dealer network, thus strengthening that network for the long haul.

This is an old solid company that is on sale right now, plus they are paying 5% to wait for the economy to take-off again. Have taken a position @ 11.00

Healthcare.

This stock has gone up and down since it's release. When I bought this stock it was at an all time high and has since been plummeting. However, I do forsee this stock going up and maybe will hit the high it was at when I first purcahsed it. This is a strong company with a proven track record. Their product is enduring as is their image. It may take some time, but Steelcase Inc. will prove itself.

New management, New Ideas

screener pick

This hit a 52 week low today.

If the yahoo PEG ratio of .42 is anywhere near correct, this is very cheap.

Strong focus on lean manufacturing methods will yield significant efficiencies over the long term. See
http://www.superfactory.com/sf20

finish later

Yes, I know it's a cyclical -- but I just can't pass up this bargain. The stock trades for 12x free cash flow, while rival Herman Miller commands 23x. Growth-wise, analysts project 30% for Steelcase, vs. half that for Herman Miller. I must rate SCS an outperformer. It's just too darned cheap.

i love the screener

it never lies
;)