STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
Overall STEP gets a fundamental rating of 5 out of 10. We evaluated STEP against 225 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 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.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
STEP has a worse Return On Assets (-2.99%) than 84.47% of its industry peers.
Looking at the Return On Equity, with a value of -62.06%, STEP is doing worse than 89.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| ROIC | N/A |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of STEP has remained more or less at the same level.
In the last couple of years the Operating Margin of STEP has declined.
With an excellent Gross Margin value of 87.59%, STEP belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has remained more or less at the same level.
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 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y6.94%
GM growth 5Y-0.81%
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
Based on the Altman-Z score of 1.08, we must say that STEP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.08, STEP perfoms like the industry average, outperforming 53.88% 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 85.39% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
STEP's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. STEP outperforms 59.82% of its industry peers.
Even though the debt/equity ratio score it not favorable for STEP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.08 |
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.
STEP has a Current ratio (1.04) which is comparable to the rest of the industry.
STEP has a Quick Ratio of 1.04. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
STEP has a Quick ratio of 1.04. This is comparable to the rest of the industry: STEP outperforms 46.58% 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 50.44% over the past year.
STEP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.65% yearly.
The Revenue has grown by 117.42% in the past year. This is a very strong growth!
STEP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.56% yearly.
EPS 1Y (TTM)50.44%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%18.92%
Revenue 1Y (TTM)117.42%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%123.79%
3.2 Future
The Earnings Per Share is expected to grow by 27.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, STEP will show a very strong growth in Revenue. The Revenue will grow by 25.77% on average per year.
EPS Next Y54.34%
EPS Next 2Y32.95%
EPS Next 3Y27.13%
EPS Next 5YN/A
Revenue Next Year38.21%
Revenue Next 2Y29.95%
Revenue Next 3Y25.77%
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
With a Price/Earnings ratio of 34.56, STEP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 76.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, STEP is valued at the same level.
With a Price/Forward Earnings ratio of 27.25, STEP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 71.69% of the companies listed in the same industry.
STEP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 27.25 |
4.2 Price Multiples
STEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STEP's earnings are expected to grow with 27.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y32.95%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.65%.
STEP's Dividend Yield is slightly below the industry average, which is at 8.69.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
STEP has been paying a dividend for over 5 years, so it has already some track record.
The dividend of STEP decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.57%
EPS Next 2Y32.95%
EPS Next 3Y27.13%
58.76
-1.4 (-2.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.03%
Inst Owner Change6.95%
Ins Owners16.7%
Ins Owner Change-0.17%
Market Cap6.81B
Analysts76.92
Price Target70.55 (20.06%)
Short Float %3.54%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-54.57%
Div Incr Years2
Div Non Decr Years2
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)2
Avg Revenue beat(2)36.8%
Min Revenue beat(2)26.51%
Max Revenue beat(2)47.09%
Revenue beat(4)3
Avg Revenue beat(4)21.47%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)47.09%
Revenue beat(8)3
Avg Revenue beat(8)8.61%
Revenue beat(12)4
Avg Revenue beat(12)-22.63%
Revenue beat(16)8
Avg Revenue beat(16)38.02%
PT rev (1m)3.01%
PT rev (3m)2.04%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)1.9%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 27.25 | ||
| P/S | 5.88 | ||
| P/FCF | 50.21 | ||
| P/OCF | 49 | ||
| P/B | 32.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.7
EY2.89%
EPS(NY)2.16
Fwd EY3.67%
FCF(TTM)1.17
FCFY1.99%
OCF(TTM)1.2
OCFY2.04%
SpS10
BVpS1.81
TBVpS-5.56
PEG (NY)0.64
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)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
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)10.99%
ROCE(5y)24.52%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y6.94%
GM growth 5Y-0.81%
F-Score3
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 | 1.08 |
F-Score3
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)50.44%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%18.92%
EPS Next Y54.34%
EPS Next 2Y32.95%
EPS Next 3Y27.13%
EPS Next 5YN/A
Revenue 1Y (TTM)117.42%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%123.79%
Revenue Next Year38.21%
Revenue Next 2Y29.95%
Revenue Next 3Y25.77%
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3Y-18.85%
EBIT growth 5Y20.59%
EBIT Next Year78.78%
EBIT Next 3Y35.52%
EBIT Next 5YN/A
FCF growth 1Y-24.76%
FCF growth 3Y-1.39%
FCF growth 5Y23.95%
OCF growth 1Y-24.41%
OCF growth 3Y2.66%
OCF growth 5Y25.69%