STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
60.94 USD
+0.8 (+1.33%)
Taking everything into account, STEP scores 3 out of 10 in our fundamental rating. STEP was compared to 237 industry peers in the Capital Markets industry. STEP has a bad profitability rating. Also its financial health evaluation is rather negative. STEP is valued quite expensive, but it does show an excellent 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.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
STEP has a worse Return On Assets (-11.54%) than 82.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.54% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-0.97%
ROA(5y)1.29%
ROE(3y)-28.2%
ROE(5y)-7.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 79.38%, STEP belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has grown nicely.
The Profit Margin and Operating Margin are not available for STEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 79.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.98%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
Compared to 1 year ago, STEP has more shares outstanding
The number of shares outstanding for STEP has been increased compared to 5 years ago.
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.02, we must say that STEP is in the distress zone and has some risk of bankruptcy.
STEP has a Altman-Z score of -0.02. This is in the lower half of the industry: STEP underperforms 75.95% of its industry peers.
The Debt to FCF ratio of STEP is 14.26, which is on the high side as it means it would take STEP, 14.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.26, STEP is in line with its industry, outperforming 53.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.26 | ||
| Altman-Z | -0.02 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEP has a Current Ratio of 0.79. This is a bad value and indicates that STEP is not financially healthy enough and could expect problems in meeting its short term obligations.
STEP's Current ratio of 0.79 is on the low side compared to the rest of the industry. STEP is outperformed by 65.82% of its industry peers.
STEP has a Quick Ratio of 0.79. This is a bad value and indicates that STEP is not financially healthy enough and could expect problems in meeting its short term obligations.
STEP has a worse Quick ratio (0.79) than 65.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.38% over the past year.
STEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.39% yearly.
STEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 91.10%.
Measured over the past years, STEP shows a very strong growth in Revenue. The Revenue has been growing by 21.29% on average per year.
EPS 1Y (TTM)26.38%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)91.1%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%22.68%
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 14.79% on average per year.
Based on estimates for the next years, STEP will show a very strong growth in Revenue. The Revenue will grow by 22.05% on average per year.
EPS Next Y-4.02%
EPS Next 2Y11.2%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue Next Year17.25%
Revenue Next 2Y21.16%
Revenue Next 3Y22.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.58, the valuation of STEP can be described as expensive.
STEP's Price/Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 72.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, STEP is valued at the same level.
With a Price/Forward Earnings ratio of 24.04, STEP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 64.13% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.98. STEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as STEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 380.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
STEP's earnings are expected to grow with 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.2%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 8.50, STEP has a dividend in line with its industry peers.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
STEP has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-17.56%
EPS Next 2Y11.2%
EPS Next 3Y14.79%
NASDAQ:STEP (11/19/2025, 11:07:58 AM)
60.94
+0.8 (+1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change4.02%
Ins Owners10.66%
Ins Owner Change-8.47%
Market Cap7.19B
Revenue(TTM)1.54B
Net Income(TTM)-615.09M
Analysts78.57
Price Target74.31 (21.94%)
Short Float %3.29%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-17.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.54%
Min EPS beat(2)-8.03%
Max EPS beat(2)9.12%
EPS beat(4)2
Avg EPS beat(4)11.84%
Min EPS beat(4)-8.03%
Max EPS beat(4)50.15%
EPS beat(8)5
Avg EPS beat(8)16.58%
EPS beat(12)5
Avg EPS beat(12)7.84%
EPS beat(16)8
Avg EPS beat(16)8.48%
Revenue beat(2)2
Avg Revenue beat(2)34.92%
Min Revenue beat(2)20.07%
Max Revenue beat(2)49.78%
Revenue beat(4)2
Avg Revenue beat(4)10.97%
Min Revenue beat(4)-17.2%
Max Revenue beat(4)49.78%
Revenue beat(8)4
Avg Revenue beat(8)10.08%
Revenue beat(12)4
Avg Revenue beat(12)-3.07%
Revenue beat(16)6
Avg Revenue beat(16)-6.29%
PT rev (1m)4.33%
PT rev (3m)14.44%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)9.06%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.43%
Revenue NY rev (1m)-6.9%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 24.04 | ||
| P/S | 4.66 | ||
| P/FCF | 380.1 | ||
| P/OCF | 305.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.06
EY3.38%
EPS(NY)2.53
Fwd EY4.16%
FCF(TTM)0.16
FCFY0.26%
OCF(TTM)0.2
OCFY0.33%
SpS13.08
BVpS-1.98
TBVpS-8.96
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.54% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 79.38% | ||
| FCFM | 1.23% |
ROA(3y)-0.97%
ROA(5y)1.29%
ROE(3y)-28.2%
ROE(5y)-7.16%
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
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 3Y5.98%
GM growth 5Y2.12%
F-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 10.2% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | -0.02 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)21.41%
Cap/Depr(5y)19.13%
Cap/Sales(3y)4.06%
Cap/Sales(5y)2.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.38%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y-4.02%
EPS Next 2Y11.2%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue 1Y (TTM)91.1%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%22.68%
Revenue Next Year17.25%
Revenue Next 2Y21.16%
Revenue Next 3Y22.05%
Revenue Next 5YN/A
EBIT growth 1Y-866.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.14%
EBIT Next 3Y23.7%
EBIT Next 5YN/A
FCF growth 1Y-83.7%
FCF growth 3Y-34.43%
FCF growth 5Y-1.67%
OCF growth 1Y-82.43%
OCF growth 3Y-32.84%
OCF growth 5Y-0.3%
STEPSTONE GROUP INC-CLASS A / STEP FAQ
Can you provide the ChartMill fundamental rating for STEPSTONE GROUP INC-CLASS A?
ChartMill assigns a fundamental rating of 3 / 10 to STEP.
Can you provide the valuation status for STEPSTONE GROUP INC-CLASS A?
ChartMill assigns a valuation rating of 2 / 10 to STEPSTONE GROUP INC-CLASS A (STEP). This can be considered as Overvalued.
Can you provide the profitability details for STEPSTONE GROUP INC-CLASS A?
STEPSTONE GROUP INC-CLASS A (STEP) has a profitability rating of 3 / 10.
What is the financial health of STEPSTONE GROUP INC-CLASS A (STEP) stock?
The financial health rating of STEPSTONE GROUP INC-CLASS A (STEP) is 0 / 10.
What is the earnings growth outlook for STEPSTONE GROUP INC-CLASS A?
The Earnings per Share (EPS) of STEPSTONE GROUP INC-CLASS A (STEP) is expected to decline by -4.02% in the next year.