STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STEP - CA85859H1055 - Common Stock
5.48 CAD
0 (0%)
Overall STEP gets a fundamental rating of 4 out of 10. We evaluated STEP against 28 industry peers in the Energy Equipment & Services industry. STEP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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.
STEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STEP has a worse Return On Assets (-1.30%) than 78.57% of its industry peers.
STEP has a Return On Equity of -1.94%. This is in the lower half of the industry: STEP underperforms 78.57% of its industry peers.
STEP's Return On Invested Capital of 6.60% is in line compared to the rest of the industry. STEP outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STEP is significantly below the industry average of 163.31%.
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
Looking at the Operating Margin, with a value of 4.88%, STEP is doing worse than 67.86% of the companies in the same industry.
The Gross Margin of STEP (9.96%) is worse than 78.57% of its industry peers.
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
STEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for STEP has been reduced compared to 1 year ago.
The number of shares outstanding for STEP has been increased compared to 5 years ago.
STEP has a better debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 2.88, STEP is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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.
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.
STEP has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.13, STEP is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.8
WACC8.28%
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.
The Current ratio of STEP (1.67) 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 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%.
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
STEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.56% yearly.
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
A Price/Earnings ratio of 20.30 indicates a rather expensive valuation of STEP.
60.71% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (26.59), we can say STEP is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.11 indicates a reasonable valuation of STEP.
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 23.80, STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
STEP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STEP is cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
STEP's 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 (12/10/2025, 7:00:00 PM)
5.48
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners24.62%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap399.38M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
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)-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 | 20.3 | ||
| Fwd PE | 9.11 | ||
| P/S | 0.44 | ||
| P/FCF | 12.53 | ||
| P/OCF | 3.99 | ||
| P/B | 0.99 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.27
EY4.93%
EPS(NY)0.6
Fwd EY10.98%
FCF(TTM)0.44
FCFY7.98%
OCF(TTM)1.37
OCFY25.09%
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
WACC8.28%
ROIC/WACC0.8
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 6 / 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.