STEP ENERGY SERVICES LTD (STEP.CA) Fundamental Analysis & Valuation

TSX:STEP • CA85859H1055

Current stock price

5.49 CAD
-0.01 (-0.18%)
Last:

This STEP.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. STEP.CA Profitability Analysis

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.
  • STEP had a positive operating cash flow in each of the past 5 years.
STEP.CA Yearly Net Income VS EBIT VS OCF VS FCFSTEP.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

1.2 Ratios

  • With a Return On Assets value of -1.30%, STEP is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
  • Looking at the Return On Equity, with a value of -1.94%, STEP is doing worse than 75.86% of the companies in the same industry.
  • With a Return On Invested Capital value of 6.60%, STEP perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for STEP is in line with the industry average of 12.36%.
  • 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 RankSector 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
STEP.CA Yearly ROA, ROE, ROICSTEP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • The Operating Margin of STEP (4.88%) is worse than 65.52% of its industry peers.
  • Looking at the Gross Margin, with a value of 9.96%, STEP is doing worse than 75.86% of the companies in the same industry.
  • In the last couple of years the Gross Margin of STEP has grown nicely.
Industry RankSector 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%
STEP.CA Yearly Profit, Operating, Gross MarginsSTEP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

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6

2. STEP.CA Health Analysis

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.
STEP.CA Yearly Shares OutstandingSTEP.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
STEP.CA Yearly Total Debt VS Total AssetsSTEP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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 72.41% 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 has a Debt to FCF ratio of 1.93. This is amongst the best in the industry. STEP outperforms 82.76% of its industry peers.
  • A Debt/Equity ratio of 0.13 indicates that STEP is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.13, STEP is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.93
Altman-Z 2.88
ROIC/WACC0.79
WACC8.34%
STEP.CA Yearly LT Debt VS Equity VS FCFSTEP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M 400M

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 58.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.67
Quick Ratio 1.32
STEP.CA Yearly Current Assets VS Current LiabilitesSTEP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. STEP.CA Growth Analysis

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.
  • STEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.40% yearly.
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

  • Based on estimates for the next years, STEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.56% 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 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

  • 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.
STEP.CA Yearly Revenue VS EstimatesSTEP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M 800M 1B
STEP.CA Yearly EPS VS EstimatesSTEP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1

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5

4. STEP.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.33, the valuation of STEP can be described as rather expensive.
  • STEP's Price/Earnings is on the same level as the industry average.
  • STEP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 9.12, the valuation of STEP can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, STEP is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. STEP is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 20.33
Fwd PE 9.12
STEP.CA Price Earnings VS Forward Price EarningsSTEP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, STEP is valued a bit cheaper than 68.97% 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 62.07% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.55
EV/EBITDA 3.7
STEP.CA Per share dataSTEP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • STEP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • STEP's earnings are expected to grow with 16.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y25.84%
EPS Next 3Y16.56%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. STEP.CA Dividend Analysis

5.1 Amount

  • STEP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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STEP.CA Fundamentals: All Metrics, Ratios and Statistics

STEP ENERGY SERVICES LTD

TSX:STEP (12/17/2025, 7:00:00 PM)

5.49

-0.01 (-0.18%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-05
Earnings (Next)03-09
Inst Owners24.62%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap400.11M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
Analysts76.36
Price Target5.61 (2.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)0.92%
PT rev (3m)7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-6.52%
EPS NY rev (3m)-11.52%
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 RankSector Rank
PE 20.33
Fwd PE 9.12
P/S 0.44
P/FCF 12.55
P/OCF 3.99
P/B 1
P/tB 1
EV/EBITDA 3.7
EPS(TTM)0.27
EY4.92%
EPS(NY)0.6
Fwd EY10.96%
FCF(TTM)0.44
FCFY7.97%
OCF(TTM)1.37
OCFY25.04%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)1.32
PEG (5Y)N/A
Graham Number5.79
Profitability
Industry RankSector 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 RankSector 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
WACC8.34%
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)-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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for STEP ENERGY SERVICES LTD?

ChartMill assigns a fundamental rating of 4 / 10 to STEP.CA.


What is the valuation status of STEP ENERGY SERVICES LTD (STEP.CA) stock?

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 expected EPS growth for STEP ENERGY SERVICES LTD (STEP.CA) stock?

The Earnings per Share (EPS) of STEP ENERGY SERVICES LTD (STEP.CA) is expected to grow by 15.42% in the next year.