STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STEP - CA85859H1055 - Common Stock
5.49 CAD
-0.01 (-0.18%)
Taking everything into account, STEP scores 4 out of 10 in our fundamental rating. STEP was compared to 27 industry peers in the Energy Equipment & Services industry. The financial health of STEP is average, but there are quite some concerns on its profitability. STEP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- STEP had positive earnings in the past year.
- STEP had a positive operating cash flow in the past year.
- In multiple years STEP reported negative net income over the last 5 years.
- In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -1.30%, STEP is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -1.94%, STEP is doing worse than 75.86% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.60%, STEP is in line with its industry, outperforming 48.28% of the companies in the same industry.
- STEP had an Average Return On Invested Capital over the past 3 years of 11.56%. This is significantly below the industry average of 177.00%.
- The 3 year average ROIC (11.56%) for STEP is well above the current ROIC(6.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -1.94% | ||
| ROIC | 6.6% |
ROA(3y)7.5%
ROA(5y)-1.64%
ROE(3y)15.21%
ROE(5y)-5.71%
ROIC(3y)11.56%
ROIC(5y)N/A
1.3 Margins
- STEP has a worse Operating Margin (4.88%) than 65.52% of its industry peers.
- With a Gross Margin value of 9.96%, STEP is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | N/A | ||
| GM | 9.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y75.97%
GM growth 5Y63.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STEP is creating some value.
- The number of shares outstanding for STEP has been reduced compared to 1 year ago.
- Compared to 5 years ago, STEP has more shares outstanding
- Compared to 1 year ago, STEP has an improved debt to assets ratio.
2.2 Solvency
- STEP has an Altman-Z score of 2.88. This is not the best score and indicates that STEP is in the grey zone with still only limited risk for bankruptcy at the moment.
- STEP has a better Altman-Z score (2.88) than 72.41% of its industry peers.
- STEP has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.93, STEP belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- STEP has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.13, STEP is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.79
WACC8.34%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that STEP should not have too much problems paying its short term obligations.
- STEP's Current ratio of 1.67 is in line compared to the rest of the industry. STEP outperforms 58.62% of its industry peers.
- STEP has a Quick Ratio of 1.32. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of STEP (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
- STEP shows a decrease in Revenue. In the last year, the revenue decreased by -9.19%.
- Measured over the past years, STEP shows a small growth in Revenue. The Revenue has been growing by 7.40% on average per year.
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%212.5%
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-11.23%
3.2 Future
- The Earnings Per Share is expected to grow by 16.56% on average over the next years. This is quite good.
- STEP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.17% yearly.
EPS Next Y15.42%
EPS Next 2Y25.84%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-3.24%
Revenue Next 3Y-2.72%
Revenue Next 5Y-4.17%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- STEP is valuated rather expensively with a Price/Earnings ratio of 20.33.
- STEP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (27.30), we can say STEP is valued slightly cheaper.
- The Price/Forward Earnings ratio is 9.12, which indicates a very decent valuation of STEP.
- Based on the Price/Forward Earnings ratio, STEP is valued a bit cheaper than 62.07% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 68.97% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, STEP is valued a bit cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.55 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as STEP's earnings are expected to grow with 16.56% in the coming years.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y25.84%
EPS Next 3Y16.56%
5. Dividend
5.1 Amount
- STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:STEP (12/17/2025, 7:00:00 PM)
5.49
-0.01 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)03-09 2026-03-09/amc
Inst Owners24.62%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap400.11M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
Analysts76.36
Price Target5.61 (2.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.97%
Min EPS beat(2)-43.07%
Max EPS beat(2)-18.87%
EPS beat(4)1
Avg EPS beat(4)-13%
Min EPS beat(4)-43.07%
Max EPS beat(4)17.5%
EPS beat(8)3
Avg EPS beat(8)-59.45%
EPS beat(12)5
Avg EPS beat(12)-39.78%
EPS beat(16)8
Avg EPS beat(16)-27.55%
Revenue beat(2)1
Avg Revenue beat(2)3.52%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)10.17%
Revenue beat(4)2
Avg Revenue beat(4)4.96%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)17.23%
Revenue beat(8)4
Avg Revenue beat(8)2.07%
Revenue beat(12)4
Avg Revenue beat(12)0.65%
Revenue beat(16)7
Avg Revenue beat(16)1.1%
PT rev (1m)0.92%
PT rev (3m)7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-6.52%
EPS NY rev (3m)-11.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.95%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.44 | ||
| P/FCF | 12.55 | ||
| P/OCF | 3.99 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.27
EY4.92%
EPS(NY)0.6
Fwd EY10.96%
FCF(TTM)0.44
FCFY7.97%
OCF(TTM)1.37
OCFY25.04%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)1.32
PEG (5Y)N/A
Graham Number5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -1.94% | ||
| ROCE | 9.16% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 6.64% | ||
| OM | 4.88% | ||
| PM (TTM) | N/A | ||
| GM | 9.96% | ||
| FCFM | 3.5% |
ROA(3y)7.5%
ROA(5y)-1.64%
ROE(3y)15.21%
ROE(5y)-5.71%
ROIC(3y)11.56%
ROIC(5y)N/A
ROICexc(3y)11.63%
ROICexc(5y)N/A
ROICexgc(3y)11.64%
ROICexgc(5y)N/A
ROCE(3y)16.05%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y75.97%
GM growth 5Y63.02%
F-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 85.75% | ||
| Cap/Sales | 7.5% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 80.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.88 |
F-Score6
WACC8.34%
ROIC/WACC0.79
Cap/Depr(3y)106.24%
Cap/Depr(5y)77.9%
Cap/Sales(3y)9.8%
Cap/Sales(5y)8.23%
Profit Quality(3y)1036.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%212.5%
EPS Next Y15.42%
EPS Next 2Y25.84%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-11.23%
Revenue Next Year-4.56%
Revenue Next 2Y-3.24%
Revenue Next 3Y-2.72%
Revenue Next 5Y-4.17%
EBIT growth 1Y-46.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year95.67%
EBIT Next 3Y27.51%
EBIT Next 5Y15.38%
FCF growth 1Y-51.65%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-38.98%
OCF growth 3Y35.4%
OCF growth 5Y15.87%
STEP ENERGY SERVICES LTD / STEP.CA FAQ
Can you provide the ChartMill fundamental rating for STEP ENERGY SERVICES LTD?
ChartMill assigns a fundamental rating of 4 / 10 to STEP.CA.
What is the valuation status of STEP ENERGY SERVICES LTD (STEP.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to STEP ENERGY SERVICES LTD (STEP.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for STEP ENERGY SERVICES LTD?
STEP ENERGY SERVICES LTD (STEP.CA) has a profitability rating of 3 / 10.
What is the expected EPS growth for STEP ENERGY SERVICES LTD (STEP.CA) stock?
The Earnings per Share (EPS) of STEP ENERGY SERVICES LTD (STEP.CA) is expected to grow by 15.42% in the next year.