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 27 industry peers in the Energy Equipment & Services industry. STEP has a great financial health rating, but its profitability evaluates not so good. STEP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STEP was profitable.
STEP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple years.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.30%, STEP is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
With a Return On Equity value of -1.94%, STEP is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
STEP has a Return On Invested Capital of 6.60%. This is comparable to the rest of the industry: STEP outperforms 51.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STEP is significantly below the industry average of 169.81%.
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 70.37% of its industry peers.
STEP has a worse Gross Margin (9.96%) than 81.48% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STEP is still creating some value.
STEP has less shares outstanding than it did 1 year ago.
STEP has more shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 2.88, STEP is in the better half of the industry, outperforming 70.37% 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.
STEP has a Debt to FCF ratio of 1.93. This is amongst the best in the industry. STEP outperforms 81.48% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that STEP is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.13, STEP belongs to the best of the industry, outperforming 81.48% 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
WACC8.37%
2.3 Liquidity
STEP has a Current Ratio of 1.67. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
STEP has a Current ratio (1.67) which is comparable to the rest of the industry.
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.
STEP's Quick ratio of 1.32 is in line compared to the rest of the industry. STEP outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for STEP have decreased strongly by -50.00% in the last year.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -9.19% in the last 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)-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 12.70% 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 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
The Price/Earnings ratio is 20.37, which indicates a rather expensive current valuation of STEP.
Compared to the rest of the industry, the Price/Earnings ratio of STEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (26.46), we can say STEP is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of STEP.
The rest of the industry has a similar Price/Forward Earnings ratio as STEP.
The average S&P500 Price/Forward Earnings ratio is at 36.10. STEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
STEP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STEP is cheaper than 74.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STEP is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.57 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
STEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STEP's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
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 (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)4.64%
PT rev (3m)6.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-5.35%
EPS NY rev (3m)-8.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.95%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 10.62 | ||
| P/S | 0.44 | ||
| P/FCF | 12.57 | ||
| P/OCF | 4 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.27
EY4.91%
EPS(NY)0.52
Fwd EY9.41%
FCF(TTM)0.44
FCFY7.95%
OCF(TTM)1.37
OCFY25%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)0.87
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 Y23.47%
EPS Next 2Y16.71%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-11.23%
Revenue Next Year-5.15%
Revenue Next 2Y-2.87%
Revenue Next 3Y-2.01%
Revenue Next 5Y-4.17%
EBIT growth 1Y-46.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.22%
EBIT Next 3Y28.94%
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 23.47% in the next year.