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 an average financial health and profitability rating. STEP is valued quite expensive, but it does show an excellent growth. This makes STEP very considerable for growth investing!
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.
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
With a Return On Assets value of 1.03%, STEP is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 10.46%, STEP is in line with its industry, outperforming 57.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.20%, STEP is in the better half of the industry, outperforming 71.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STEP is above the industry average of 6.97%.
| 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 has a worse Profit Margin (5.14%) than 71.89% 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 41.01% of the companies in the same industry.
In the last couple of years the Operating Margin of STEP has declined.
STEP's Gross Margin of 93.01% is amongst the best of the industry. STEP outperforms 92.17% of its industry peers.
In the last couple of years the Gross Margin of STEP has grown nicely.
| 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.
Compared to 5 years ago, STEP has more shares outstanding
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
STEP has an Altman-Z score of 1.77. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
STEP's Altman-Z score of 1.77 is fine compared to the rest of the industry. STEP outperforms 68.66% 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.
With an excellent Debt to FCF ratio value of 1.33, STEP belongs to the best of the industry, outperforming 85.25% 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 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 1.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEP has a Current 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.
STEP has a Current ratio (1.30) which is comparable to the rest of the industry.
A Quick Ratio of 1.30 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Quick ratio of 1.30 is in line compared to the rest of the industry. STEP outperforms 57.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.25%, which is quite impressive.
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!
Measured over the past years, STEP shows a very strong growth in Revenue. The Revenue has been growing by 22.56% on average per year.
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
The Earnings Per Share is expected to grow by 30.31% 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 21.98% on average per year.
EPS Next Y57.87%
EPS Next 2Y36.51%
EPS Next 3Y30.31%
EPS Next 5YN/A
Revenue Next Year36.02%
Revenue Next 2Y25.73%
Revenue Next 3Y21.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 41.09 indicates a quite expensive valuation of STEP.
Compared to the rest of the industry, the Price/Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 78.34% of the companies listed in the same industry.
STEP is valuated rather expensively when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.46, the valuation of STEP can be described as expensive.
STEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STEP is more expensive than 70.51% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, STEP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 29.46 |
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.
62.21% of the companies in the same industry are cheaper than STEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.42 | ||
| EV/EBITDA | 37.27 |
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.
STEP's earnings are expected to grow with 30.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y36.51%
EPS Next 3Y30.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, STEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.96, STEP is paying slightly less dividend.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 2Y36.51%
EPS Next 3Y30.31%
STEPSTONE GROUP INC-CLASS A
NASDAQ:STEP (11/25/2024, 10:29:00 AM)
66.98
-0.07 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 29.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 10.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.74% | ||
| PM (TTM) | 5.14% | ||
| GM | 93.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)58.25%
EPS 3Y-22.65%
EPS 5Y
EPS Q2Q%
EPS Next Y57.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.36%
Revenue growth 3Y-3.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y