STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
TSX:STEP - CA85859H1055 - Common Stock
4.32 CAD
-0.04 (-0.92%)
Overall STEP gets a fundamental rating of 3 out of 10. We evaluated STEP against 27 industry peers in the Energy Equipment & Services industry. STEP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. STEP is valued correctly, but it does not seem to be growing.
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.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -3.27%, STEP is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
With a Return On Equity value of -5.13%, STEP is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 6.11%, STEP is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for STEP is in line with the industry average of 11.19%.
The 3 year average ROIC (11.56%) for STEP is well above the current ROIC(6.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -5.13% | ||
| ROIC | 6.11% |
ROA(3y)7.5%
ROA(5y)-1.64%
ROE(3y)15.21%
ROE(5y)-5.71%
ROIC(3y)11.56%
ROIC(5y)N/A
1.3 Margins
STEP has a Operating Margin of 4.32%. This is in the lower half of the industry: STEP underperforms 70.37% of its industry peers.
The Gross Margin of STEP (9.00%) is worse than 81.48% of its industry peers.
In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y75.97%
GM growth 5Y63.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STEP is creating some value.
Compared to 1 year ago, STEP has less shares outstanding
The number of shares outstanding for STEP has been increased compared to 5 years ago.
STEP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP's Altman-Z score of 2.49 is fine compared to the rest of the industry. STEP outperforms 70.37% of its industry peers.
STEP has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
STEP's Debt to FCF ratio of 1.52 is amongst the best of the industry. STEP outperforms 85.19% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STEP is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, STEP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.68
WACC8.97%
2.3 Liquidity
STEP has a Current Ratio of 1.57. 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 of 1.57. This is comparable to the rest of the industry: STEP outperforms 48.15% of its industry peers.
STEP has a Quick Ratio of 1.25. 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 1.25. This is comparable to the rest of the industry: STEP outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for STEP have decreased strongly by -88.89% in the last year.
STEP shows a decrease in Revenue. In the last year, the revenue decreased by -6.25%.
The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
3.2 Future
The Earnings Per Share is expected to grow by 19.56% on average over the next years. This is quite good.
The Revenue is expected to decrease by -4.54% on average over the next years.
EPS Next Y34.75%
EPS Next 2Y22.82%
EPS Next 3Y19.56%
EPS Next 5YN/A
Revenue Next Year-5.85%
Revenue Next 2Y-2.41%
Revenue Next 3Y-2.02%
Revenue Next 5Y-4.54%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 43.20, 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 77.78% of the companies listed in the same industry.
STEP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 7.54, the valuation of STEP can be described as very cheap.
STEP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STEP is cheaper than 74.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STEP to the average of the S&P500 Index (22.72), we can say STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
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 | 6.9 | ||
| EV/EBITDA | 2.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STEP's earnings are expected to grow with 19.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (8/29/2025, 7:00:00 PM)
4.32
-0.04 (-0.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners16.68%
Inst Owner ChangeN/A
Ins Owners1.44%
Ins Owner ChangeN/A
Market Cap314.80M
Analysts76.92
Price Target5.23 (21.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.21%
Min EPS beat(2)-18.87%
Max EPS beat(2)-7.56%
EPS beat(4)1
Avg EPS beat(4)-38.33%
Min EPS beat(4)-144.39%
Max EPS beat(4)17.5%
EPS beat(8)3
Avg EPS beat(8)-55.13%
EPS beat(12)6
Avg EPS beat(12)-32.82%
EPS beat(16)9
Avg EPS beat(16)-24.35%
Revenue beat(2)2
Avg Revenue beat(2)13.7%
Min Revenue beat(2)10.17%
Max Revenue beat(2)17.23%
Revenue beat(4)2
Avg Revenue beat(4)4.85%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)17.23%
Revenue beat(8)4
Avg Revenue beat(8)2.41%
Revenue beat(12)4
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)1.05%
PT rev (1m)3.24%
PT rev (3m)3.98%
EPS NQ rev (1m)-22.73%
EPS NQ rev (3m)-32%
EPS NY rev (1m)-11.67%
EPS NY rev (3m)-11.67%
Revenue NQ rev (1m)-8.65%
Revenue NQ rev (3m)-15.07%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.34 | ||
| P/FCF | 6.9 | ||
| P/OCF | 2.79 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 2.95 |
EPS(TTM)0.1
EY2.31%
EPS(NY)0.57
Fwd EY13.27%
FCF(TTM)0.63
FCFY14.5%
OCF(TTM)1.55
OCFY35.79%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.27% | ||
| ROE | -5.13% | ||
| ROCE | 8.49% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 6.17% | ||
| OM | 4.32% | ||
| PM (TTM) | N/A | ||
| GM | 9% | ||
| FCFM | 4.86% |
ROA(3y)7.5%
ROA(5y)-1.64%
ROE(3y)15.21%
ROE(5y)-5.71%
ROIC(3y)11.56%
ROIC(5y)N/A
ROICexc(3y)11.63%
ROICexc(5y)N/A
ROICexgc(3y)11.64%
ROICexgc(5y)N/A
ROCE(3y)16.05%
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 3Y75.97%
GM growth 5Y63.02%
F-Score6
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 75.74% | ||
| Cap/Sales | 7.14% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 87.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.49 |
F-Score6
WACC8.97%
ROIC/WACC0.68
Cap/Depr(3y)106.24%
Cap/Depr(5y)77.9%
Cap/Sales(3y)9.8%
Cap/Sales(5y)8.23%
Profit Quality(3y)1036.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-88.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.86%
EPS Next Y34.75%
EPS Next 2Y22.82%
EPS Next 3Y19.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.85%
Revenue Next 2Y-2.41%
Revenue Next 3Y-2.02%
Revenue Next 5Y-4.54%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.61%
EBIT Next 3Y28.74%
EBIT Next 5Y14.94%
FCF growth 1Y-51.07%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-39.6%
OCF growth 3Y35.4%
OCF growth 5Y15.87%