STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
63.09 USD
+0.86 (+1.38%)
63.09 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to STEP. 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 expensively, but it does show have an excellent growth rating.
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.
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's Return On Assets of -11.54% is on the low side compared to the rest of the industry. STEP is outperformed by 83.12% 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
The number of shares outstanding for STEP has been increased compared to 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 0.01. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
STEP's Altman-Z score of 0.01 is on the low side compared to the rest of the industry. STEP is outperformed by 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 52.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.26 | ||
| Altman-Z | 0.01 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.79 indicates that STEP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, STEP is doing worse than 66.67% of the companies in the same industry.
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.
The Quick ratio of STEP (0.79) is worse than 66.24% 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.
The Earnings Per Share has been growing by 8.39% on average over the past years. This is quite good.
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
STEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.79% yearly.
The Revenue is expected to grow by 22.05% on average over the next years. This is a very strong growth
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.
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
STEP is valuated quite expensively with a Price/Earnings ratio of 30.63.
STEP's Price/Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 73.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. STEP is around the same levels.
The Price/Forward Earnings ratio is 24.89, which indicates a rather expensive current valuation of STEP.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 65.40% of the companies are valued more cheaply.
STEP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
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 | 393.51 | ||
| 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 1.78%.
Compared to an average industry Dividend Yield of 8.41, STEP has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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
The earnings of STEP are negative and hence is the payout ratio. STEP will probably not be able to sustain this dividend level.
DP-17.56%
EPS Next 2Y11.2%
EPS Next 3Y14.79%
63.09
+0.86 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change-0.33%
Ins Owners10.66%
Ins Owner Change-8.03%
Market Cap7.45B
Revenue(TTM)1.54B
Net Income(TTM)-615.09M
Analysts78.57
Price Target74.31 (17.78%)
Short Float %3.55%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)3.28%
EPS NQ rev (3m)9.67%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)6.14%
Revenue NY rev (1m)-6.9%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 24.89 | ||
| P/S | 4.82 | ||
| P/FCF | 393.51 | ||
| P/OCF | 315.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.06
EY3.27%
EPS(NY)2.53
Fwd EY4.02%
FCF(TTM)0.16
FCFY0.25%
OCF(TTM)0.2
OCFY0.32%
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 | 0.01 |
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.