STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
5.38 CAD
0 (0%)
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 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 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.
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's Return On Assets of -3.27% is on the low side compared to the rest of the industry. STEP is outperformed by 82.14% of its industry peers.
STEP has a Return On Equity of -5.13%. This is amonst the worse of the industry: STEP underperforms 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, STEP is doing worse than 60.71% 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 in line with the industry average of 11.19%.
The last Return On Invested Capital (6.11%) 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 | -3.27% | ||
| ROE | -5.13% | ||
| ROIC | 6.11% |
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 4.32%, STEP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
With a Gross Margin value of 9.00%, STEP is not doing good in the industry: 78.57% 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 | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% |
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.
Compared to 5 years ago, STEP has more shares outstanding
STEP has a better debt/assets ratio than last year.
2.2 Solvency
STEP has an Altman-Z score of 2.69. 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 2.69, 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 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
STEP has a Debt to FCF ratio of 1.52. This is amongst the best in the industry. STEP outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STEP is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, STEP is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.73
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.57 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Current ratio (1.57) which is comparable to the rest of the industry.
STEP has a Quick Ratio of 1.25. 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 Quick ratio, with a value of 1.25, STEP is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.89%.
STEP shows a decrease in Revenue. In the last year, the revenue decreased by -6.25%.
The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
3.2 Future
The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, STEP will show a decrease in Revenue. The Revenue will decrease by -4.31% on average per year.
EPS Next Y30.45%
EPS Next 2Y24.99%
EPS Next 3Y21.41%
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-2.67%
Revenue Next 3Y-3.24%
Revenue Next 5Y-4.31%
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
STEP is valuated quite expensively with a Price/Earnings ratio of 53.80.
Compared to the rest of the industry, the Price/Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 75.00% of the companies listed in the same industry.
STEP is valuated expensively when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
STEP is valuated reasonably with a Price/Forward Earnings ratio of 9.06.
STEP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STEP is cheaper than 64.29% of the companies in the same industry.
STEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.8 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
STEP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STEP is cheaper than 75.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as STEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 3.55 |
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 21.41% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y24.99%
EPS Next 3Y21.41%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (10/14/2025, 7:00:00 PM)
5.38
0 (0%)
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 Cap392.04M
Analysts76.67
Price Target5.31 (-1.3%)
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)-13.21%
Min EPS beat(2)-18.87%
Max EPS beat(2)-7.56%
EPS beat(4)1
Avg EPS beat(4)-38.33%
Min EPS beat(4)-144.39%
Max EPS beat(4)17.5%
EPS beat(8)3
Avg EPS beat(8)-55.13%
EPS beat(12)6
Avg EPS beat(12)-32.82%
EPS beat(16)9
Avg EPS beat(16)-24.35%
Revenue beat(2)2
Avg Revenue beat(2)13.7%
Min Revenue beat(2)10.17%
Max Revenue beat(2)17.23%
Revenue beat(4)2
Avg Revenue beat(4)4.85%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)17.23%
Revenue beat(8)4
Avg Revenue beat(8)2.41%
Revenue beat(12)4
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)1.05%
PT rev (1m)1.63%
PT rev (3m)5.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.61%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-14.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.65%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.8 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.42 | ||
| P/FCF | 8.59 | ||
| P/OCF | 3.48 | ||
| P/B | 1 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.1
EY1.86%
EPS(NY)0.59
Fwd EY11.03%
FCF(TTM)0.63
FCFY11.64%
OCF(TTM)1.55
OCFY28.73%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)1.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -5.13% | ||
| ROCE | 8.49% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 6.17% | ||
| OM | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% | ||
| FCFM | 4.86% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 75.74% | ||
| Cap/Sales | 7.14% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 87.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.69 |
F-Score6
WACC8.35%
ROIC/WACC0.73
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)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
EPS Next Y30.45%
EPS Next 2Y24.99%
EPS Next 3Y21.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.49%
Revenue Next 2Y-2.67%
Revenue Next 3Y-3.24%
Revenue Next 5Y-4.31%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.22%
EBIT Next 3Y28.94%
EBIT Next 5Y15.22%
FCF growth 1Y-51.07%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-39.6%
OCF growth 3Y35.4%
OCF growth 5Y15.87%