STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
60.11 USD
-0.99 (-1.62%)
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 237 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.
STEP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple years.
Of the past 5 years STEP 4 years had a positive operating cash flow.
1.2 Ratios
STEP's Return On Assets of -2.99% is on the low side compared to the rest of the industry. STEP is outperformed by 79.75% of its industry peers.
STEP has a worse Return On Equity (-62.06%) than 86.50% 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
With an excellent Gross Margin value of 87.59%, STEP belongs to the best of the industry, outperforming 90.72% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has grown nicely.
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.
The number of shares outstanding for STEP has been increased compared to 5 years ago.
The debt/assets ratio for STEP is higher compared to a year ago.
2.2 Solvency
STEP has an Altman-Z score of 1.13. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.13, STEP perfoms like the industry average, outperforming 56.54% of the companies in the same industry.
The Debt to FCF ratio of STEP is 1.24, which is an excellent value as it means it would take STEP, only 1.24 years of fcf income to pay off all of its debts.
STEP has a better Debt to FCF ratio (1.24) than 89.03% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
STEP has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: STEP outperforms 58.65% of its industry peers.
Although STEP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.13 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEP has a Current 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.
Looking at the Current ratio, with a value of 1.04, STEP is in line with its industry, outperforming 44.30% of the companies in the same 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 (1.04) which is comparable to the rest of the industry.
| 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 36.81% over the past year.
STEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.39% yearly.
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)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
3.2 Future
Based on estimates for the next years, STEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
STEP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.84% yearly.
EPS Next Y-4.97%
EPS Next 2Y11.68%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue Next Year25.94%
Revenue Next 2Y22.85%
Revenue Next 3Y20.84%
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
A Price/Earnings ratio of 30.51 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 71.31% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.20, STEP is valued at the same level.
A Price/Forward Earnings ratio of 23.51 indicates a rather expensive valuation of STEP.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 63.29% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, STEP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 23.51 |
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 | 52.28 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.68%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
STEP's Dividend Yield is slightly below the industry average, which is at 7.96.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
The earnings of STEP are negative and hence is the payout ratio. STEP will probably not be able to sustain this dividend level.
DP-54.57%
EPS Next 2Y11.68%
EPS Next 3Y10.2%
NASDAQ:STEP (9/17/2025, 3:59:08 PM)
60.11
-0.99 (-1.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.89%
Inst Owner Change1.76%
Ins Owners10.69%
Ins Owner Change-8.03%
Market Cap7.10B
Analysts76.92
Price Target68 (13.13%)
Short Float %3.62%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)4.71%
PT rev (3m)7.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)6.43%
Revenue NY rev (3m)4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 23.51 | ||
| P/S | 6.12 | ||
| P/FCF | 52.28 | ||
| P/OCF | 51.02 | ||
| P/B | 33.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.97
EY3.28%
EPS(NY)2.56
Fwd EY4.25%
FCF(TTM)1.15
FCFY1.91%
OCF(TTM)1.18
OCFY1.96%
SpS9.82
BVpS1.78
TBVpS-5.46
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 | 1.13 |
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)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y-4.97%
EPS Next 2Y11.68%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
Revenue Next Year25.94%
Revenue Next 2Y22.85%
Revenue Next 3Y20.84%
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.03%
EBIT Next 3Y22.08%
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