STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STEP - CA85859H1055 - Common Stock
5.48 CAD
+0.01 (+0.18%)
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 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
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
STEP has a worse Return On Assets (-1.30%) than 77.78% of its industry peers.
STEP's Return On Equity of -1.94% is on the low side compared to the rest of the industry. STEP is outperformed by 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.60%, STEP is in line with its industry, outperforming 51.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STEP is significantly below the industry average of 169.95%.
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
With a Operating Margin value of 4.88%, STEP is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
STEP's Gross Margin of 9.96% is on the low side compared to the rest of the industry. STEP is outperformed by 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.
Compared to 1 year ago, STEP has less shares outstanding
STEP has more shares outstanding than it did 5 years ago.
STEP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.88 indicates that STEP is not a great score, but indicates 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 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 81.48% of its industry peers.
STEP has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
STEP has a better Debt to Equity ratio (0.13) than 81.48% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 1.67, STEP is in line with its industry, outperforming 51.85% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Quick ratio of 1.32. This is comparable 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
STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
STEP shows a decrease in Revenue. In the last year, the revenue decreased by -9.19%.
The Revenue has been growing slightly by 7.40% on average over the past years.
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 12.70% yearly.
The Revenue is expected to decrease by -4.17% on average over the next years.
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 20.30, which indicates a rather expensive current valuation of STEP.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
STEP is valuated rather cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
STEP is valuated reasonably with a Price/Forward Earnings ratio of 10.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STEP is on the same level as its industry peers.
STEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STEP.
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 | 12.52 | ||
| 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)0.86
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 (11/21/2025, 7:00:00 PM)
5.48
+0.01 (+0.18%)
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 Cap399.33M
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)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 | 20.3 | ||
| Fwd PE | 10.59 | ||
| P/S | 0.44 | ||
| P/FCF | 12.52 | ||
| P/OCF | 3.99 | ||
| P/B | 0.99 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.27
EY4.93%
EPS(NY)0.52
Fwd EY9.45%
FCF(TTM)0.44
FCFY7.98%
OCF(TTM)1.37
OCFY25.09%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)0.86
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 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 4 / 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.