STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
4.28 CAD
+0.07 (+1.66%)
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 28 industry peers in the Energy Equipment & Services industry. The financial health of STEP is average, but there are quite some concerns on its profitability. STEP has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
STEP has a Return On Assets of -3.27%. This is amonst the worse of the industry: STEP underperforms 82.14% of its industry peers.
STEP's Return On Equity of -5.13% is on the low side compared to the rest of the industry. STEP is outperformed by 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, STEP is doing worse than 60.71% of the companies in the same industry.
STEP had an Average Return On Invested Capital over the past 3 years of 11.56%. This is in line with the industry average of 11.19%.
The last Return On Invested Capital (6.11%) for STEP is well below the 3 year average (11.56%), which needs to be investigated, but indicates that STEP had better years and this may not be a problem.
| 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
With a Operating Margin value of 4.32%, STEP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
STEP's Gross Margin of 9.00% is on the low side compared to the rest of the industry. STEP is outperformed by 78.57% of its industry peers.
STEP's Gross Margin has improved in the last couple of years.
| 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.
STEP has less shares outstanding than it did 1 year ago.
STEP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STEP has an improved debt to assets ratio.
2.2 Solvency
STEP has an Altman-Z score of 2.48. This is not the best score and indicates that STEP is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of STEP (2.48) is better than 71.43% of its industry peers.
The Debt to FCF ratio of STEP is 1.52, which is an excellent value as it means it would take STEP, only 1.52 years of fcf income to pay off all of its debts.
STEP's Debt to FCF ratio of 1.52 is amongst the best of the industry. STEP outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STEP is not too dependend on debt financing.
The Debt to Equity ratio of STEP (0.16) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.68
WACC8.98%
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.
Looking at the Current ratio, with a value of 1.57, STEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 (1.25) which is comparable to the rest of the industry.
| 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.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -6.25% in the last year.
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.
STEP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.62% yearly.
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-4.62%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.80, STEP can be considered very expensive at the moment.
75.00% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. STEP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 7.47 indicates a rather cheap valuation of STEP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. STEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.8 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 2.93 |
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)1.23
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
No dividends for STEP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (9/23/2025, 7:00:00 PM)
4.28
+0.07 (+1.66%)
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 Cap311.88M
Analysts76.67
Price Target5.23 (22.2%)
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)0%
EPS NQ rev (3m)-32%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.8 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.33 | ||
| P/FCF | 6.83 | ||
| P/OCF | 2.77 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)0.1
EY2.34%
EPS(NY)0.57
Fwd EY13.39%
FCF(TTM)0.63
FCFY14.63%
OCF(TTM)1.55
OCFY36.12%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)1.23
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 | 2.48 |
F-Score6
WACC8.98%
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-4.62%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.61%
EBIT Next 3Y28.74%
EBIT Next 5Y14.85%
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%