STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
TSX:STEP - Toronto Stock Exchange - CA85859H1055 - Common Stock - Currency: CAD
Taking everything into account, STEP scores 4 out of 10 in our fundamental rating. STEP was compared to 28 industry peers in the Energy Equipment & Services industry. STEP has only an average score on both its financial health and profitability. STEP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STEP was profitable.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.18%, STEP is in line with its industry, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.22%, STEP is in line with its industry, outperforming 46.43% of the companies in the same industry.
STEP has a Return On Invested Capital of 12.58%. This is in the better half of the industry: STEP outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 10.22% | ||
| ROIC | 12.58% |
ROA(3y)5.46%
ROA(5y)-5.89%
ROE(3y)9.77%
ROE(5y)-14.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.10%, STEP is doing worse than 60.71% of the companies in the same industry.
STEP has a Operating Margin of 8.35%. This is comparable to the rest of the industry: STEP outperforms 42.86% of its industry peers.
STEP's Operating Margin has improved in the last couple of years.
STEP has a Gross Margin of 12.48%. This is in the lower half of the industry: STEP underperforms 75.00% of its industry peers.
STEP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.35% | ||
| PM (TTM) | 4.1% | ||
| GM | 12.48% |
OM growth 3YN/A
OM growth 5Y24.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y8.26%
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 more 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
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 has a better Altman-Z score (2.55) than 67.86% of its industry peers.
STEP has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as STEP would need 2.22 years to pay back of all of its debts.
STEP's Debt to FCF ratio of 2.22 is amongst the best of the industry. STEP outperforms 82.14% of its industry peers.
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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.51
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.39 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Current ratio of 1.39. This is in the lower half of the industry: STEP underperforms 64.29% of its industry peers.
STEP has a Quick Ratio of 1.09. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of STEP (1.09) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.90%.
The Earnings Per Share has been growing by 33.56% on average over the past years. This is a very strong growth
STEP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
STEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.88% yearly.
EPS 1Y (TTM)-44.9%
EPS 3YN/A
EPS 5Y33.56%
EPS Q2Q%-128.57%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y36.86%
Revenue growth 5Y3.88%
Sales Q2Q%0.3%
3.2 Future
STEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.04% yearly.
STEP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.60% yearly.
EPS Next Y-48.75%
EPS Next 2Y-5.13%
EPS Next 3Y6.04%
EPS Next 5YN/A
Revenue Next Year1.08%
Revenue Next 2Y-1.24%
Revenue Next 3Y1.13%
Revenue Next 5Y-1.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 8.17, the valuation of STEP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 78.57% of the companies listed in the same industry.
STEP is valuated cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
STEP is valuated cheaply with a Price/Forward Earnings ratio of 7.21.
STEP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STEP is cheaper than 75.00% of the companies in the same industry.
STEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued cheaper than 96.43% 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 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 2.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-5.13%
EPS Next 3Y6.04%
5. Dividend
5.1 Amount
No dividends for STEP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (3/3/2025, 7:00:00 PM)
4.41
-0.24 (-5.16%)
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 Cap317.70M
Analysts78.46
Price Target5.32 (20.63%)
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)-71.98%
Min EPS beat(2)-144.39%
Max EPS beat(2)0.43%
EPS beat(4)2
Avg EPS beat(4)-105.9%
Min EPS beat(4)-311.16%
Max EPS beat(4)31.52%
EPS beat(8)4
Avg EPS beat(8)-53.18%
EPS beat(12)7
Avg EPS beat(12)-32.39%
EPS beat(16)9
Avg EPS beat(16)-24.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-7.2%
Max Revenue beat(4)5.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)1.18%
PT rev (1m)0%
PT rev (3m)-3.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-811.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.32 | ||
| P/FCF | 7.94 | ||
| P/OCF | 2.06 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 2.26 |
EPS(TTM)0.54
EY12.24%
EPS(NY)0.61
Fwd EY13.88%
FCF(TTM)0.56
FCFY12.59%
OCF(TTM)2.14
OCFY48.53%
SpS13.92
BVpS5.59
TBVpS5.59
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 10.22% | ||
| ROCE | 16.41% | ||
| ROIC | 12.58% | ||
| ROICexc | 12.62% | ||
| ROICexgc | 12.62% | ||
| OM | 8.35% | ||
| PM (TTM) | 4.1% | ||
| GM | 12.48% | ||
| FCFM | 3.99% |
ROA(3y)5.46%
ROA(5y)-5.89%
ROE(3y)9.77%
ROE(5y)-14.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y37.33%
ROICexc growth 3YN/A
ROICexc growth 5Y42.07%
OM growth 3YN/A
OM growth 5Y24.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y8.26%
F-Score5
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 120.15% | ||
| Cap/Sales | 11.39% | ||
| Interest Coverage | 8.02 | ||
| Cash Conversion | 86.25% | ||
| Profit Quality | 97.26% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.55 |
F-Score5
WACC8.33%
ROIC/WACC1.51
Cap/Depr(3y)89.76%
Cap/Depr(5y)67.08%
Cap/Sales(3y)8.82%
Cap/Sales(5y)7.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.9%
EPS 3YN/A
EPS 5Y33.56%
EPS Q2Q%-128.57%
EPS Next Y-48.75%
EPS Next 2Y-5.13%
EPS Next 3Y6.04%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y36.86%
Revenue growth 5Y3.88%
Sales Q2Q%0.3%
Revenue Next Year1.08%
Revenue Next 2Y-1.24%
Revenue Next 3Y1.13%
Revenue Next 5Y-1.6%
EBIT growth 1Y-17.59%
EBIT growth 3YN/A
EBIT growth 5Y29.23%
EBIT Next Year89.85%
EBIT Next 3Y25.61%
EBIT Next 5Y10.49%
FCF growth 1Y-38.09%
FCF growth 3Y31.86%
FCF growth 5YN/A
OCF growth 1Y21.76%
OCF growth 3Y54.2%
OCF growth 5Y9.12%