STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STEP - CA85859H1055 - Common Stock
5.5 CAD
+0.02 (+0.36%)
STEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Energy Equipment & Services industry. While STEP seems to be doing ok healthwise, there are quite some concerns on its profitability. STEP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STEP had positive earnings in the past year.
In the past year STEP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple years.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.30%, STEP is doing worse than 78.57% of the companies in the same industry.
STEP's Return On Equity of -1.94% is on the low side compared to the rest of the industry. STEP is outperformed by 78.57% of its industry peers.
STEP has a Return On Invested Capital (6.60%) which is comparable to the rest of the 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 163.31%.
The last Return On Invested Capital (6.60%) for STEP is well below the 3 year average (11.56%), which needs to be investigated, but indicates that STEP had better years and this may not be a problem.
| 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
With a Operating Margin value of 4.88%, STEP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 9.96%, STEP is doing worse than 78.57% of the companies in the same industry.
STEP's Gross Margin has improved in the last couple of years.
| 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.
STEP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STEP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.88 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.88, STEP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of STEP is 1.93, which is an excellent value as it means it would take STEP, only 1.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.93, STEP belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that STEP is not too dependend on debt financing.
STEP has a better Debt to Equity ratio (0.13) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.79
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.67 indicates that STEP should not have too much problems paying its short term obligations.
The Current ratio of STEP (1.67) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Quick ratio of 1.32 is in line compared to the rest of the industry. STEP outperforms 57.14% of its industry peers.
| 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%.
The Revenue has decreased by -9.19% in the past year.
STEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.40% yearly.
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
Based on estimates for the next years, STEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.56% on average per year.
Based on estimates for the next years, STEP will show a decrease in Revenue. The Revenue will decrease by -4.17% on average per year.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
STEP is valuated rather expensively with a Price/Earnings ratio of 20.37.
60.71% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
STEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
Based on the Price/Forward Earnings ratio of 9.14, the valuation of STEP can be described as reasonable.
60.71% of the companies in the same industry are more expensive than STEP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 9.14 |
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 75.00% of the companies listed in the same industry.
STEP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STEP is cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.57 | ||
| EV/EBITDA | 3.71 |
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 | N/A |
TSX:STEP (12/5/2025, 7:00:00 PM)
5.5
+0.02 (+0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners24.62%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap400.84M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
Analysts76.36
Price Target5.56 (1.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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%
PT rev (3m)6.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-6.52%
EPS NY rev (3m)-14.34%
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 | 20.37 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.44 | ||
| P/FCF | 12.57 | ||
| P/OCF | 4 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.71 |
EPS(TTM)0.27
EY4.91%
EPS(NY)0.6
Fwd EY10.94%
FCF(TTM)0.44
FCFY7.95%
OCF(TTM)1.37
OCFY25%
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
WACC8.37%
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.
Can you provide the valuation status for STEP ENERGY SERVICES LTD?
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 financial health of STEP ENERGY SERVICES LTD (STEP.CA) stock?
The financial health rating of STEP ENERGY SERVICES LTD (STEP.CA) is 7 / 10.
What is the earnings growth outlook for STEP ENERGY SERVICES LTD?
The Earnings per Share (EPS) of STEP ENERGY SERVICES LTD (STEP.CA) is expected to grow by 15.42% in the next year.