STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
TSX:STEP - Toronto Stock Exchange - CA85859H1055 - Common Stock - Currency: CAD
Overall STEP gets a fundamental rating of 4 out of 10. We evaluated STEP against 26 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STEP was profitable.
In the past year STEP had a positive cash flow from operations.
In multiple years STEP reported negative net income over the last 5 years.
STEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.30%, STEP is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
With a Return On Equity value of 0.48%, STEP is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 10.16%, STEP is doing good in the industry, outperforming 73.08% 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 above the industry average of 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.48% | ||
| ROIC | 10.16% |
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 Profit Margin (0.18%) than 65.38% of its industry peers.
STEP has a Operating Margin (6.96%) which is in line with its industry peers.
STEP has a Gross Margin of 11.54%. This is in the lower half of the industry: STEP underperforms 73.08% of its industry peers.
In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.96% | ||
| PM (TTM) | 0.18% | ||
| GM | 11.54% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STEP is still 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.
STEP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.55 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP's Altman-Z score of 2.55 is fine compared to the rest of the industry. STEP outperforms 73.08% of its industry peers.
The Debt to FCF ratio of STEP is 1.63, which is an excellent value as it means it would take STEP, only 1.63 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.63, STEP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that STEP is not too dependend on debt financing.
STEP has a Debt to Equity ratio of 0.20. This is in the better half of the industry: STEP outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.19
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.32 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Current ratio of 1.32 is on the low side compared to the rest of the industry. STEP is outperformed by 69.23% of its industry peers.
A Quick Ratio of 0.87 indicates that STEP may have some problems paying its short term obligations.
The Quick ratio of STEP (0.87) is worse than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for STEP have decreased strongly by -44.12% in the last year.
The Revenue has been growing slightly by 0.98% in the past year.
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)-44.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-228.57%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-24.4%
3.2 Future
The Earnings Per Share is expected to grow by 26.83% on average over the next years. This is a very strong growth
Based on estimates for the next years, STEP will show a decrease in Revenue. The Revenue will decrease by -2.66% on average per year.
EPS Next Y52.55%
EPS Next 2Y37.07%
EPS Next 3Y26.83%
EPS Next 5YN/A
Revenue Next Year-3.5%
Revenue Next 2Y1.15%
Revenue Next 3Y0.15%
Revenue Next 5Y-2.66%
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
With a Price/Earnings ratio of 10.29, the valuation of STEP can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as STEP.
The average S&P500 Price/Earnings ratio is at 28.92. STEP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.74 indicates a rather cheap valuation of STEP.
STEP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STEP is cheaper than 65.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. STEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP indicates a rather cheap valuation: STEP is cheaper than 92.31% 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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | 2.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 26.83% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y37.07%
EPS Next 3Y26.83%
5. Dividend
5.1 Amount
No dividends for STEP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (4/23/2025, 7:00:00 PM)
3.91
+0.02 (+0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners16.68%
Inst Owner ChangeN/A
Ins Owners1.29%
Ins Owner ChangeN/A
Market Cap281.68M
Analysts78.46
Price Target5.28 (35.04%)
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)1
Avg EPS beat(2)-63.45%
Min EPS beat(2)-144.39%
Max EPS beat(2)17.5%
EPS beat(4)3
Avg EPS beat(4)-23.74%
Min EPS beat(4)-144.39%
Max EPS beat(4)31.52%
EPS beat(8)5
Avg EPS beat(8)-48.83%
EPS beat(12)8
Avg EPS beat(12)-14.76%
EPS beat(16)10
Avg EPS beat(16)-23%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)-3.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)5.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)0.88%
PT rev (1m)-0.68%
PT rev (3m)-2.03%
EPS NQ rev (1m)-5.41%
EPS NQ rev (3m)-32.69%
EPS NY rev (1m)-5.28%
EPS NY rev (3m)-33.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.29 | ||
| P/FCF | 5.45 | ||
| P/OCF | 1.93 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 2.25 |
EPS(TTM)0.38
EY9.72%
EPS(NY)0.58
Fwd EY14.83%
FCF(TTM)0.72
FCFY18.36%
OCF(TTM)2.03
OCFY51.85%
SpS13.26
BVpS5.14
TBVpS5.13
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.48% | ||
| ROCE | 14.11% | ||
| ROIC | 10.16% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 10.28% | ||
| OM | 6.96% | ||
| PM (TTM) | 0.18% | ||
| GM | 11.54% | ||
| FCFM | 5.42% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 100.17% | ||
| Cap/Sales | 9.88% | ||
| Interest Coverage | 6.17 | ||
| Cash Conversion | 90.94% | ||
| Profit Quality | 2935.47% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.55 |
F-Score6
WACC8.53%
ROIC/WACC1.19
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)-44.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-228.57%
EPS Next Y52.55%
EPS Next 2Y37.07%
EPS Next 3Y26.83%
EPS Next 5YN/A
Revenue 1Y (TTM)0.98%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-24.4%
Revenue Next Year-3.5%
Revenue Next 2Y1.15%
Revenue Next 3Y0.15%
Revenue Next 5Y-2.66%
EBIT growth 1Y-14.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year112.47%
EBIT Next 3Y31.06%
EBIT Next 5Y15.28%
FCF growth 1Y-22.14%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-14.89%
OCF growth 3Y35.4%
OCF growth 5Y15.87%