STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
5.47 CAD
0 (-0.09%)
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 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.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
STEP has a Return On Assets of -1.30%. This is in the lower half of the industry: STEP underperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of -1.94%, STEP is doing worse than 74.07% of the companies in the same industry.
With a Return On Invested Capital value of 6.60%, STEP perfoms like the industry average, outperforming 44.44% 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 significantly below the industry average of 170.16%.
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
STEP has a Operating Margin of 4.88%. This is in the lower half of the industry: STEP underperforms 74.07% of its industry peers.
With a Gross Margin value of 9.96%, 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 | 4.88% | ||
| 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.
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 2.87 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 2.87, STEP is in the better half of the industry, outperforming 66.67% 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.
STEP's Debt to FCF ratio of 1.93 is amongst the best of the industry. STEP outperforms 85.19% 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 | 2.87 |
ROIC/WACC0.79
WACC8.34%
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.
A Quick Ratio of 1.32 indicates that STEP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, STEP is in line with its industry, outperforming 55.56% of the companies in the same industry.
| 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 -44.12%.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -9.19% in the last year.
The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)-44.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%219.29%
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 12.70% yearly.
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
Based on the Price/Earnings ratio of 14.39, the valuation of STEP can be described as correct.
STEP's Price/Earnings is on the same level as the industry average.
STEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
Based on the Price/Forward Earnings ratio of 10.57, the valuation of STEP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STEP is on the same level as its industry peers.
STEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.5 | ||
| EV/EBITDA | 3.69 |
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.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 12.70% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y16.71%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (11/18/2025, 7:00:00 PM)
5.47
0 (-0.09%)
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 Cap398.60M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
Analysts76.36
Price Target5.56 (1.65%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)9.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-5.35%
EPS NY rev (3m)-19.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.95%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.44 | ||
| P/FCF | 12.5 | ||
| P/OCF | 3.98 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 3.69 |
EPS(TTM)0.38
EY6.95%
EPS(NY)0.52
Fwd EY9.46%
FCF(TTM)0.44
FCFY8%
OCF(TTM)1.37
OCFY25.14%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)0.61
PEG (5Y)N/A
Graham Number6.87
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 | 2.87 |
F-Score6
WACC8.34%
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)-44.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%219.29%
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.