STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
STEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. While STEP seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
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.
Of the past 5 years STEP 4 years had a positive operating cash flow.
1.2 Ratios
STEP has a worse Return On Assets (-2.99%) than 81.12% of its industry peers.
STEP has a Return On Equity of -62.06%. This is amonst the worse of the industry: STEP underperforms 87.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| 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 87.59%. This is amongst the best in the industry. STEP outperforms 90.99% of its industry peers.
STEP's Gross Margin has improved in the last couple of years.
STEP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 87.59% |
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.
Compared to 5 years ago, STEP has more shares outstanding
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that STEP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.03, STEP perfoms like the industry average, outperforming 53.22% of the companies in the same industry.
STEP has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
STEP has a better Debt to FCF ratio (1.24) than 86.70% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
STEP has a better Debt to Equity ratio (0.81) than 61.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
The Current ratio of STEP (1.04) is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Quick ratio of 1.04 is in line compared to the rest of the industry. STEP outperforms 48.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.03% 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 64.72%.
The Revenue has been growing by 21.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68.03%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%106.06%
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%39.11%
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 10.06% yearly.
STEP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.76% yearly.
EPS Next Y-2.65%
EPS Next 2Y10.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.29%
Revenue Next 2Y20.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 27.06, 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 67.81% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (27.21), we can say STEP is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.80, STEP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of STEP to the average of the S&P500 Index (21.70), we can say STEP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 27.8 |
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 | 47.58 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.71%.
Compared to an average industry Dividend Yield of 8.00, STEP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.42, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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-54.57%
EPS Next 2Y10.06%
EPS Next 3YN/A
55.47
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners96.29%
Inst Owner Change3.25%
Ins Owners16.22%
Ins Owner Change-7.42%
Market Cap6.46B
Analysts76.92
Price Target63.24 (14.01%)
Short Float %4.52%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-54.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.48%
Min EPS beat(2)-5.06%
Max EPS beat(2)-3.9%
EPS beat(4)2
Avg EPS beat(4)9.87%
Min EPS beat(4)-5.06%
Max EPS beat(4)33.36%
EPS beat(8)3
Avg EPS beat(8)5.94%
EPS beat(12)5
Avg EPS beat(12)5.57%
EPS beat(16)9
Avg EPS beat(16)15.15%
Revenue beat(2)1
Avg Revenue beat(2)4.66%
Min Revenue beat(2)-17.2%
Max Revenue beat(2)26.51%
Revenue beat(4)2
Avg Revenue beat(4)5.4%
Min Revenue beat(4)-17.2%
Max Revenue beat(4)26.51%
Revenue beat(8)2
Avg Revenue beat(8)0.58%
Revenue beat(12)3
Avg Revenue beat(12)-27.99%
Revenue beat(16)7
Avg Revenue beat(16)34%
PT rev (1m)9.73%
PT rev (3m)-8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.48%
EPS NY rev (1m)6.01%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 27.8 | ||
| P/S | 5.57 | ||
| P/FCF | 47.58 | ||
| P/OCF | 46.43 | ||
| P/B | 30.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY3.7%
EPS(NY)2
Fwd EY3.6%
FCF(TTM)1.17
FCFY2.1%
OCF(TTM)1.19
OCFY2.15%
SpS9.96
BVpS1.8
TBVpS-5.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 87.59% | ||
| FCFM | 11.7% |
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-Score4
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 7.36% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.03 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.03%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%106.06%
EPS Next Y-2.65%
EPS Next 2Y10.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%39.11%
Revenue Next Year20.29%
Revenue Next 2Y20.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year6.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.33%
OCF growth 3YN/A
OCF growth 5YN/A