STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
Taking everything into account, STEP scores 5 out of 10 in our fundamental rating. STEP was compared to 222 industry peers in the Capital Markets industry. STEP has only an average score on both its financial health and profitability. STEP is valued quite expensive, but it does show an excellent growth. These ratings would make STEP suitable for growth investing!
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.03%, STEP is doing worse than 68.20% of the companies in the same industry.
STEP's Return On Equity of 10.46% is in line compared to the rest of the industry. STEP outperforms 59.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.20%, STEP is in the better half of the industry, outperforming 71.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STEP is above the industry average of 6.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 10.46% | ||
| ROIC | 6.2% |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)9.44%
ROIC(5y)21.06%
1.3 Margins
STEP's Profit Margin of 5.14% is on the low side compared to the rest of the industry. STEP is outperformed by 70.05% of its industry peers.
STEP's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 19.74%, STEP perfoms like the industry average, outperforming 41.01% of the companies in the same industry.
STEP's Operating Margin has declined in the last couple of years.
STEP has a better Gross Margin (93.01%) than 92.63% of its industry peers.
In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 5.14% | ||
| GM | 93.01% |
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y11.17%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
STEP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STEP has been increased compared to 5 years ago.
The debt/assets ratio for STEP is higher compared to a year ago.
2.2 Solvency
STEP has an Altman-Z score of 1.71. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of STEP (1.71) is better than 65.44% of its industry peers.
The Debt to FCF ratio of STEP is 1.33, which is an excellent value as it means it would take STEP, only 1.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STEP (1.33) is better than 85.71% of its industry peers.
STEP has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.43, STEP is doing good in the industry, outperforming 72.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.71 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.30 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Current ratio of 1.30. This is comparable to the rest of the industry: STEP outperforms 56.68% of its industry peers.
A Quick Ratio of 1.30 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Quick ratio of 1.30 is in line compared to the rest of the industry. STEP outperforms 56.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.25%, which is quite impressive.
The earnings per share for STEP have been decreasing by -22.65% on average. This is quite bad
The Revenue has grown by 49.36% in the past year. This is a very strong growth!
Measured over the past years, STEP shows a very strong growth in Revenue. The Revenue has been growing by 22.56% on average per year.
EPS 1Y (TTM)58.25%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%73.08%
Revenue 1Y (TTM)49.36%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%81.36%
3.2 Future
The Earnings Per Share is expected to grow by 30.30% on average over the next years. This is a very strong growth
STEP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.02% yearly.
EPS Next Y54.71%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
EPS Next 5YN/A
Revenue Next Year35.64%
Revenue Next 2Y27.17%
Revenue Next 3Y24.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.71 indicates a quite expensive valuation of STEP.
STEP's Price/Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 76.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. STEP is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 29.41 indicates a quite expensive valuation of STEP.
71.43% of the companies in the same industry are cheaper than STEP, based on the Price/Forward Earnings ratio.
STEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.71 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, STEP is valued a bit more expensive than the industry average as 61.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.42 | ||
| EV/EBITDA | 35.54 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 30.30% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y34.3%
EPS Next 3Y30.3%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 9.42, STEP is paying slightly less dividend.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
STEP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STEP pays out 161.43% of its income as dividend. This is not a sustainable payout ratio.
DP161.43%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
STEPSTONE GROUP INC-CLASS A
NASDAQ:STEP (1/30/2025, 8:00:00 PM)
After market: 64.72 0 (0%)64.72
+0.75 (+1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.07%
Inst Owner Change-0.02%
Ins Owners17.46%
Ins Owner Change-0.04%
Market Cap7.45B
Analysts76.92
Price Target72.2 (11.56%)
Short Float %3.44%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP161.43%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.15%
Min EPS beat(2)-5.06%
Max EPS beat(2)33.36%
EPS beat(4)3
Avg EPS beat(4)21.32%
Min EPS beat(4)-5.06%
Max EPS beat(4)41.92%
EPS beat(8)3
Avg EPS beat(8)5.84%
EPS beat(12)6
Avg EPS beat(12)7.37%
EPS beat(16)10
Avg EPS beat(16)19.48%
Revenue beat(2)2
Avg Revenue beat(2)23.11%
Min Revenue beat(2)19.7%
Max Revenue beat(2)26.51%
Revenue beat(4)2
Avg Revenue beat(4)9.19%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)26.51%
Revenue beat(8)2
Avg Revenue beat(8)-10.08%
Revenue beat(12)4
Avg Revenue beat(12)-12.04%
Revenue beat(16)8
Avg Revenue beat(16)48.32%
PT rev (1m)-0.8%
PT rev (3m)17.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.71 | ||
| Fwd PE | 29.41 | ||
| P/S | 9.23 | ||
| P/FCF | 57.42 | ||
| P/OCF | 54.53 | ||
| P/B | 18.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.54 |
EPS(TTM)1.63
EY2.52%
EPS(NY)2.2
Fwd EY3.4%
FCF(TTM)1.13
FCFY1.74%
OCF(TTM)1.19
OCFY1.83%
SpS7.02
BVpS3.45
TBVpS-4.06
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 10.46% | ||
| ROCE | 7.22% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 13.05% | ||
| OM | 19.74% | ||
| PM (TTM) | 5.14% | ||
| GM | 93.01% | ||
| FCFM | 16.07% |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)9.44%
ROIC(5y)21.06%
ROICexc(3y)10.14%
ROICexc(5y)26.65%
ROICexgc(3y)22.01%
ROICexgc(5y)35.44%
ROCE(3y)10.99%
ROCE(5y)24.52%
ROICexcg growth 3Y-36.06%
ROICexcg growth 5Y-9.56%
ROICexc growth 3Y-47.97%
ROICexc growth 5Y-18.9%
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y11.17%
GM growth 5Y1.52%
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 14.85% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.42% | ||
| Profit Quality | 312.37% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.71 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)20.26%
Cap/Depr(5y)19.14%
Cap/Sales(3y)3.97%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.25%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%73.08%
EPS Next Y54.71%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
EPS Next 5YN/A
Revenue 1Y (TTM)49.36%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%81.36%
Revenue Next Year35.64%
Revenue Next 2Y27.17%
Revenue Next 3Y24.02%
Revenue Next 5YN/A
EBIT growth 1Y-13.32%
EBIT growth 3Y-18.85%
EBIT growth 5Y20.59%
EBIT Next Year82.88%
EBIT Next 3Y34.51%
EBIT Next 5YN/A
FCF growth 1Y-41.42%
FCF growth 3Y-1.39%
FCF growth 5Y23.95%
OCF growth 1Y-39.11%
OCF growth 3Y2.66%
OCF growth 5Y25.69%