STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
61.58 USD
-0.22 (-0.36%)
61.58 USD
0 (0%)
Overall STEP gets a fundamental rating of 3 out of 10. We evaluated STEP against 239 industry peers in the Capital Markets industry. Both the profitability and financial health of STEP have multiple concerns. STEP is valued quite expensively, but it does show have an excellent growth rating.
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.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
STEP has a worse Return On Assets (-4.84%) than 81.01% of its industry peers.
STEP's Return On Equity of -150.27% is on the low side compared to the rest of the industry. STEP is outperformed by 90.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.84% | ||
| ROE | -150.27% | ||
| 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
STEP has a Gross Margin of 82.71%. This is amongst the best in the industry. STEP outperforms 88.19% of its industry peers.
STEP's Gross Margin has improved in the last couple of years.
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 | 82.71% |
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
Compared to 5 years ago, STEP has more shares outstanding
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
STEP has an Altman-Z score of 0.86. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, STEP is in line with its industry, outperforming 48.95% of the companies in the same industry.
The Debt to FCF ratio of STEP is 4.86, which is a neutral value as it means it would take STEP, 4.86 years of fcf income to pay off all of its debts.
STEP's Debt to FCF ratio of 4.86 is fine compared to the rest of the industry. STEP outperforms 71.73% of its industry peers.
STEP has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STEP (1.75) is worse than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 0.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.96 indicates that STEP may have some problems paying its short term obligations.
STEP has a Current ratio (0.96) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that STEP may have some problems paying its short term obligations.
STEP's Quick ratio of 0.96 is in line compared to the rest of the industry. STEP outperforms 40.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.81%, which is quite impressive.
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 87.02%.
The Revenue has been growing by 21.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)87.02%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
3.2 Future
The Earnings Per Share is expected to grow by 14.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 18.90% on average over the next years. This is quite good.
EPS Next Y-4.59%
EPS Next 2Y12.05%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue Next Year25.94%
Revenue Next 2Y25.22%
Revenue Next 3Y18.9%
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
The Price/Earnings ratio is 31.26, 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 71.73% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.40, STEP is valued at the same level.
A Price/Forward Earnings ratio of 23.93 indicates a rather expensive valuation of STEP.
STEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 64.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STEP to the average of the S&P500 Index (22.94), we can say STEP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 23.93 |
4.2 Price Multiples
STEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.18 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as STEP's earnings are expected to grow with 14.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.05%
EPS Next 3Y14.87%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 8.49, STEP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.36, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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-44.23%
EPS Next 2Y12.05%
EPS Next 3Y14.87%
61.58
-0.22 (-0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change0.23%
Ins Owners10.66%
Ins Owner Change-8.03%
Market Cap7.27B
Analysts78.46
Price Target71.23 (15.67%)
Short Float %3.38%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-44.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.06%
Min EPS beat(2)-8.03%
Max EPS beat(2)50.15%
EPS beat(4)1
Avg EPS beat(4)8.29%
Min EPS beat(4)-8.03%
Max EPS beat(4)50.15%
EPS beat(8)4
Avg EPS beat(8)14.19%
EPS beat(12)5
Avg EPS beat(12)8.63%
EPS beat(16)8
Avg EPS beat(16)9.97%
Revenue beat(2)1
Avg Revenue beat(2)20.5%
Min Revenue beat(2)-8.78%
Max Revenue beat(2)49.78%
Revenue beat(4)2
Avg Revenue beat(4)12.58%
Min Revenue beat(4)-17.2%
Max Revenue beat(4)49.78%
Revenue beat(8)3
Avg Revenue beat(8)7.11%
Revenue beat(12)3
Avg Revenue beat(12)-22.53%
Revenue beat(16)6
Avg Revenue beat(16)2.29%
PT rev (1m)4.75%
PT rev (3m)12.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | 23.93 | ||
| P/S | 5.34 | ||
| P/FCF | 131.18 | ||
| P/OCF | 119.1 | ||
| P/B | 47.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.97
EY3.2%
EPS(NY)2.57
Fwd EY4.18%
FCF(TTM)0.47
FCFY0.76%
OCF(TTM)0.52
OCFY0.84%
SpS11.52
BVpS1.3
TBVpS-5.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.84% | ||
| ROE | -150.27% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 82.71% | ||
| FCFM | 4.07% |
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
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 3Y5.98%
GM growth 5Y2.12%
F-Score3
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 12.33% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.86 |
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)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y-4.59%
EPS Next 2Y12.05%
EPS Next 3Y14.87%
EPS Next 5YN/A
Revenue 1Y (TTM)87.02%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
Revenue Next Year25.94%
Revenue Next 2Y25.22%
Revenue Next 3Y18.9%
Revenue Next 5YN/A
EBIT growth 1Y-330.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.14%
EBIT Next 3Y22.08%
EBIT Next 5YN/A
FCF growth 1Y-59.9%
FCF growth 3Y-34.43%
FCF growth 5Y-1.67%
OCF growth 1Y-59.66%
OCF growth 3Y-32.84%
OCF growth 5Y-0.3%