Shares have tumbled 77% over the past year, underperforming the S&P 500. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
We've downgraded Steelcase (SCS), which engages in the design, manufacture and marketing of office furniture, from hold to sell. This rating is driven by the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Net income decreased from $30.6 million in the year-ago quarter to -$65.7 million in the most recent quarter. ROE also decreased, which could signal weakness in the corporation. Steelcase's gross profit margin of 30.5% has decreased from the year-ago quarter, and its net profit margin of -10% is below the industry average. Net operating cash flow fell to -$8 million in the most recent quarter.
Shares have tumbled by 54.7% over the past year, underperforming the S&P 500, and EPS were also down compared with the year-ago quarter. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.Other ratings changes include MetroGAS (MGS), downgraded from hold to sell, and NetScout (NTCT), downgraded from buy to hold. All ratings changes from April 1 are listed below.
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