STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
61.14 USD
-1.1 (-1.77%)
61.14 USD
0 (0%)
STEP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. Both the profitability and financial health of STEP have multiple concerns. STEP is valued quite expensive, but it does show an excellent growth.
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.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple 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 (-4.84%) than 81.86% of its industry peers.
STEP has a Return On Equity of -150.27%. This is amonst the worse of the industry: STEP underperforms 89.87% 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
With an excellent Gross Margin value of 82.71%, STEP belongs to the best of the industry, outperforming 88.19% of the companies in the same industry.
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 | 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
The number of shares outstanding for STEP has been increased compared to 1 year ago.
STEP has more shares outstanding than it did 5 years ago.
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that STEP is in the distress zone and has some risk of bankruptcy.
STEP's Altman-Z score of 0.86 is in line compared to the rest of the industry. STEP outperforms 48.95% of its industry peers.
STEP has a debt to FCF ratio of 4.86. This is a neutral value as STEP would need 4.86 years to pay back of all of its debts.
STEP's Debt to FCF ratio of 4.86 is fine compared to the rest of the industry. STEP outperforms 72.57% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that STEP has dependencies on debt financing.
STEP has a worse Debt to Equity ratio (1.75) than 76.79% 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's Current ratio of 0.96 is on the low side compared to the rest of the industry. STEP is outperformed by 61.18% of 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 on the low side compared to the rest of the industry. STEP is outperformed by 60.76% 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 26.38%, which is quite impressive.
Measured over the past years, STEP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.39% on average per year.
The Revenue has grown by 64.72% 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 21.29% on average per year.
EPS 1Y (TTM)26.38%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%3.92%
3.2 Future
The Earnings Per Share is expected to grow by 14.79% on average over the next years. This is quite good.
STEP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.05% yearly.
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
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 29.68 indicates a quite expensive valuation of STEP.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than the industry average as 72.57% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.83. STEP is around the same levels.
With a Price/Forward Earnings ratio of 24.12, STEP is valued on the expensive side.
STEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 65.82% of the companies in the same industry.
STEP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 24.12 |
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 | 130.25 | ||
| 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 1.79%.
STEP's Dividend Yield is slightly below the industry average, which is at 8.39.
Compared to the average S&P500 Dividend Yield of 2.39, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 2Y11.2%
EPS Next 3Y14.79%
61.14
-1.1 (-1.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change-0.86%
Ins Owners10.66%
Ins Owner Change-8.03%
Market Cap7.22B
Revenue(TTM)1.18B
Net Income(TTM)-231.31M
Analysts78.57
Price Target74.31 (21.54%)
Short Float %3.55%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)9.29%
PT rev (3m)17.51%
EPS NQ rev (1m)3.64%
EPS NQ rev (3m)10.04%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)6.14%
Revenue NY rev (1m)-6.73%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 24.12 | ||
| P/S | 5.31 | ||
| P/FCF | 130.25 | ||
| P/OCF | 118.25 | ||
| P/B | 46.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.06
EY3.37%
EPS(NY)2.53
Fwd EY4.15%
FCF(TTM)0.47
FCFY0.77%
OCF(TTM)0.52
OCFY0.85%
SpS11.52
BVpS1.3
TBVpS-5.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.77
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
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 Turnover0.28
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)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)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%3.92%
Revenue Next Year17.25%
Revenue Next 2Y21.16%
Revenue Next 3Y22.05%
Revenue Next 5YN/A
EBIT growth 1Y-330.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.14%
EBIT Next 3Y23.7%
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%
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 1 / 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.