STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
5.48 CAD
0 (0%)
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 27 industry peers in the Energy Equipment & Services industry. No worries on liquidiy or solvency for STEP as it has an excellent financial health rating, but there are worries on the 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.
STEP had a positive operating cash flow in the past year.
In multiple years STEP reported negative net income over the last 5 years.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
STEP has a Return On Assets of -3.27%. This is amonst the worse of the industry: STEP underperforms 85.19% of its industry peers.
With a Return On Equity value of -5.13%, STEP is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
STEP's Return On Invested Capital of 6.11% is on the low side compared to the rest of the industry. STEP is outperformed by 62.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STEP is in line with the industry average of 10.80%.
The 3 year average ROIC (11.56%) for STEP is well above the current ROIC(6.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -5.13% | ||
| ROIC | 6.11% |
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 4.32%, STEP is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
With a Gross Margin value of 9.00%, STEP is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
STEP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% |
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
STEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, STEP has less shares outstanding
The number of shares outstanding for STEP has been increased compared to 5 years ago.
Compared to 1 year ago, STEP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP has a Altman-Z score of 2.71. This is in the better half of the industry: STEP outperforms 66.67% of its industry peers.
The Debt to FCF ratio of STEP is 1.52, which is an excellent value as it means it would take STEP, only 1.52 years of fcf income to pay off all of its debts.
STEP's Debt to FCF ratio of 1.52 is amongst the best of the industry. STEP outperforms 88.89% of its industry peers.
STEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
STEP has a better Debt to Equity ratio (0.16) than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.73
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.57 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Current ratio (1.57) which is comparable to the rest of the industry.
STEP has a Quick Ratio of 1.25. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.25, STEP is in line with its industry, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for STEP have decreased strongly by -88.89% in the last year.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -6.25% in the last year.
The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
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 12.70% on average per year.
STEP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.17% yearly.
EPS Next Y23.47%
EPS Next 2Y16.71%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue Next Year-5.15%
Revenue Next 2Y-2.87%
Revenue Next 3Y-2.01%
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 quite expensively with a Price/Earnings ratio of 54.80.
STEP's Price/Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, STEP is valued quite expensively.
A Price/Forward Earnings ratio of 10.59 indicates a reasonable valuation of STEP.
STEP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of STEP to the average of the S&P500 Index (32.68), we can say STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.8 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
62.96% of the companies in the same industry are more expensive than STEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | 3.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 12.70% in the coming years.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y16.71%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
No dividends for STEP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (11/7/2025, 7:00:00 PM)
5.48
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners21.14%
Inst Owner ChangeN/A
Ins Owners1.33%
Ins Owner ChangeN/A
Market Cap399.33M
Revenue(TTM)939.19M
Net Income(TTM)-20.06M
Analysts76.36
Price Target5.56 (1.46%)
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)-13.21%
Min EPS beat(2)-18.87%
Max EPS beat(2)-7.56%
EPS beat(4)1
Avg EPS beat(4)-38.33%
Min EPS beat(4)-144.39%
Max EPS beat(4)17.5%
EPS beat(8)3
Avg EPS beat(8)-55.13%
EPS beat(12)6
Avg EPS beat(12)-32.82%
EPS beat(16)9
Avg EPS beat(16)-24.35%
Revenue beat(2)2
Avg Revenue beat(2)13.7%
Min Revenue beat(2)10.17%
Max Revenue beat(2)17.23%
Revenue beat(4)2
Avg Revenue beat(4)4.85%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)17.23%
Revenue beat(8)4
Avg Revenue beat(8)2.41%
Revenue beat(12)4
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)1.05%
PT rev (1m)4.64%
PT rev (3m)9.78%
EPS NQ rev (1m)-8.82%
EPS NQ rev (3m)-29.55%
EPS NY rev (1m)-5.35%
EPS NY rev (3m)-19.06%
Revenue NQ rev (1m)2.03%
Revenue NQ rev (3m)-6.8%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.8 | ||
| Fwd PE | 10.59 | ||
| P/S | 0.43 | ||
| P/FCF | 8.75 | ||
| P/OCF | 3.54 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.61 |
EPS(TTM)0.1
EY1.82%
EPS(NY)0.52
Fwd EY9.45%
FCF(TTM)0.63
FCFY11.43%
OCF(TTM)1.55
OCFY28.21%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)2.33
PEG (5Y)N/A
Graham Number3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -5.13% | ||
| ROCE | 8.49% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 6.17% | ||
| OM | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% | ||
| FCFM | 4.86% |
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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 75.74% | ||
| Cap/Sales | 7.14% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 87.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.71 |
F-Score6
WACC8.36%
ROIC/WACC0.73
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)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
EPS Next Y23.47%
EPS Next 2Y16.71%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.15%
Revenue Next 2Y-2.87%
Revenue Next 3Y-2.01%
Revenue Next 5Y-4.17%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.22%
EBIT Next 3Y28.94%
EBIT Next 5Y15.38%
FCF growth 1Y-51.07%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-39.6%
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 4 / 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 23.47% in the next year.