STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
4.26 CAD
+0.02 (+0.47%)
STEP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 27 industry peers in the Energy Equipment & Services industry. While STEP seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
In the past year STEP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple years.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -3.27%, STEP is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
With a Return On Equity value of -5.13%, STEP is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
The Return On Invested Capital of STEP (6.11%) is worse than 62.96% of its industry peers.
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 3 year average ROIC (11.56%) for STEP is well above the current ROIC(6.11%). The reason for the recent decline needs to be investigated.
| 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
STEP's Operating Margin of 4.32% is on the low side compared to the rest of the industry. STEP is outperformed by 70.37% of its industry peers.
Looking at the Gross Margin, with a value of 9.00%, STEP is doing worse than 81.48% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has grown nicely.
| 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.
Compared to 1 year ago, STEP has less shares outstanding
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 2.47 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 (2.47) than 70.37% of its industry peers.
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 better Debt to FCF ratio (1.52) than 85.19% of its industry peers.
STEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, STEP is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.69
WACC8.83%
2.3 Liquidity
STEP has a Current Ratio of 1.57. 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 (1.57) which is in line with its industry peers.
A Quick Ratio of 1.25 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Quick ratio (1.25) which is comparable to the rest of the 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%.
STEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.40% yearly.
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
Based on estimates for the next years, STEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.56% on average per year.
The Revenue is expected to decrease by -4.62% on average over the next years.
EPS Next Y34.75%
EPS Next 2Y22.82%
EPS Next 3Y19.56%
EPS Next 5YN/A
Revenue Next Year-5.85%
Revenue Next 2Y-2.41%
Revenue Next 3Y-2.02%
Revenue Next 5Y-4.62%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 42.60, which means the current valuation is very expensive for STEP.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.30. STEP is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 7.43, the valuation of STEP can be described as very cheap.
Based on the Price/Forward Earnings ratio, STEP is valued a bit cheaper than 70.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STEP to the average of the S&P500 Index (22.73), we can say STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.6 | ||
| Fwd PE | 7.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP indicates a rather cheap valuation: STEP is cheaper than 92.59% of the companies listed in the same industry.
STEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 2.92 |
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 19.56% in the coming years.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (9/12/2025, 7:00:00 PM)
4.26
+0.02 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners16.68%
Inst Owner ChangeN/A
Ins Owners1.44%
Ins Owner ChangeN/A
Market Cap310.43M
Analysts76.67
Price Target5.23 (22.77%)
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)3.24%
PT rev (3m)3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32%
EPS NY rev (1m)-11.67%
EPS NY rev (3m)-11.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.07%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.6 | ||
| Fwd PE | 7.43 | ||
| P/S | 0.33 | ||
| P/FCF | 6.8 | ||
| P/OCF | 2.76 | ||
| P/B | 0.79 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)0.1
EY2.35%
EPS(NY)0.57
Fwd EY13.46%
FCF(TTM)0.63
FCFY14.7%
OCF(TTM)1.55
OCFY36.29%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)1.23
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 | 2.47 |
F-Score6
WACC8.83%
ROIC/WACC0.69
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 Y34.75%
EPS Next 2Y22.82%
EPS Next 3Y19.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.85%
Revenue Next 2Y-2.41%
Revenue Next 3Y-2.02%
Revenue Next 5Y-4.62%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.61%
EBIT Next 3Y28.74%
EBIT Next 5Y14.85%
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%