STEPSTONE GROUP INC-CLASS A (STEP)
US85914M1071 - Common Stock
STEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 220 industry peers in the Capital Markets industry. STEP has only an average score on both its financial health and profitability. STEP is valued quite expensive, but it does show an excellent growth. These ratings would make STEP suitable for growth investing!
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.
STEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STEP has a Return On Assets of 1.03%. This is in the lower half of the industry: STEP underperforms 68.66% of its industry peers.
The Return On Equity of STEP (10.46%) is comparable to the rest of the industry.
The Return On Invested Capital of STEP (6.20%) is better than 71.89% of its industry peers.
STEP had an Average Return On Invested Capital over the past 3 years of 9.44%. This is above the industry average of 6.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 10.46% | ||
| ROIC | 6.2% |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)9.44%
ROIC(5y)21.06%
1.3 Margins
STEP's Profit Margin of 5.14% is on the low side compared to the rest of the industry. STEP is outperformed by 70.51% of its industry peers.
In the last couple of years the Profit Margin of STEP has remained more or less at the same level.
With a Operating Margin value of 19.74%, STEP perfoms like the industry average, outperforming 40.55% of the companies in the same industry.
STEP's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 93.01%, STEP belongs to the best of the industry, outperforming 92.17% of the companies in the same industry.
STEP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 5.14% | ||
| GM | 93.01% |
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y11.17%
GM growth 5Y1.52%
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.
Compared to 1 year ago, STEP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that STEP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STEP (1.64) is better than 66.36% of its industry peers.
The Debt to FCF ratio of STEP is 1.33, which is an excellent value as it means it would take STEP, only 1.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.33, STEP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
STEP has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
STEP's Debt to Equity ratio of 0.43 is fine compared to the rest of the industry. STEP outperforms 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.64 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.30 indicates that STEP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, STEP perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
STEP has a Quick Ratio of 1.30. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, STEP is in line with its industry, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 58.25% over the past year.
Measured over the past years, STEP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.65% on average per year.
The Revenue has grown by 49.36% in the past year. This is a very strong growth!
The Revenue has been growing by 22.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)58.25%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%73.08%
Revenue 1Y (TTM)49.36%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%81.36%
3.2 Future
Based on estimates for the next years, STEP will show a very strong growth in Earnings Per Share. The EPS will grow by 30.30% 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 23.72% on average per year.
EPS Next Y54.71%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
EPS Next 5YN/A
Revenue Next Year36.72%
Revenue Next 2Y27.29%
Revenue Next 3Y23.72%
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.
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
With a Price/Earnings ratio of 37.38, STEP can be considered very expensive at the moment.
76.50% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
STEP is valuated rather expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
STEP is valuated quite expensively with a Price/Forward Earnings ratio of 27.69.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than 70.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, STEP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, STEP is valued a bit more expensive than 60.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.05 | ||
| EV/EBITDA | 33.47 |
4.3 Compensation for Growth
STEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 30.30% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y34.3%
EPS Next 3Y30.3%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
STEP's Dividend Yield is slightly below the industry average, which is at 9.57.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
STEP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STEP pays out 161.43% of its income as dividend. This is not a sustainable payout ratio.
DP161.43%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
STEPSTONE GROUP INC-CLASS A
NASDAQ:STEP (12/26/2024, 8:00:01 PM)
After market: 60.93 0 (0%)60.93
+0.67 (+1.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.07%
Inst Owner Change5.76%
Ins Owners17.46%
Ins Owner Change-0.04%
Market Cap7.02B
Analysts76.92
Price Target72.78 (19.45%)
Short Float %4.07%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Dividend Growth(5Y)N/A
DP161.43%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.15%
Min EPS beat(2)-5.06%
Max EPS beat(2)33.36%
EPS beat(4)3
Avg EPS beat(4)21.32%
Min EPS beat(4)-5.06%
Max EPS beat(4)41.92%
EPS beat(8)3
Avg EPS beat(8)5.84%
EPS beat(12)6
Avg EPS beat(12)7.37%
EPS beat(16)10
Avg EPS beat(16)19.48%
Revenue beat(2)2
Avg Revenue beat(2)23.11%
Min Revenue beat(2)19.7%
Max Revenue beat(2)26.51%
Revenue beat(4)2
Avg Revenue beat(4)9.19%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)26.51%
Revenue beat(8)2
Avg Revenue beat(8)-10.08%
Revenue beat(12)4
Avg Revenue beat(12)-12.04%
Revenue beat(16)8
Avg Revenue beat(16)48.32%
PT rev (1m)18.36%
PT rev (3m)36.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)-2%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 27.69 | ||
| P/S | 8.69 | ||
| P/FCF | 54.05 | ||
| P/OCF | 51.33 | ||
| P/B | 17.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.47 |
EPS(TTM)1.63
EY2.68%
EPS(NY)2.2
Fwd EY3.61%
FCF(TTM)1.13
FCFY1.85%
OCF(TTM)1.19
OCFY1.95%
SpS7.02
BVpS3.45
TBVpS-4.06
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 10.46% | ||
| ROCE | 7.22% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 13.05% | ||
| OM | 19.74% | ||
| PM (TTM) | 5.14% | ||
| GM | 93.01% | ||
| FCFM | 16.07% |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)9.44%
ROIC(5y)21.06%
ROICexc(3y)10.14%
ROICexc(5y)26.65%
ROICexgc(3y)22.01%
ROICexgc(5y)35.44%
ROCE(3y)10.99%
ROCE(5y)24.52%
ROICexcg growth 3Y-36.06%
ROICexcg growth 5Y-9.56%
ROICexc growth 3Y-47.97%
ROICexc growth 5Y-18.9%
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y11.17%
GM growth 5Y1.52%
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 14.85% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.42% | ||
| Profit Quality | 312.37% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.64 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)20.26%
Cap/Depr(5y)19.14%
Cap/Sales(3y)3.97%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.25%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%73.08%
EPS Next Y54.71%
EPS Next 2Y34.3%
EPS Next 3Y30.3%
EPS Next 5YN/A
Revenue 1Y (TTM)49.36%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%81.36%
Revenue Next Year36.72%
Revenue Next 2Y27.29%
Revenue Next 3Y23.72%
Revenue Next 5YN/A
EBIT growth 1Y-13.32%
EBIT growth 3Y-18.85%
EBIT growth 5Y20.59%
EBIT Next Year82.88%
EBIT Next 3Y34.51%
EBIT Next 5YN/A
FCF growth 1Y-41.42%
FCF growth 3Y-1.39%
FCF growth 5Y23.95%
OCF growth 1Y-39.11%
OCF growth 3Y2.66%
OCF growth 5Y25.69%