STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
5.47 CAD
-0.01 (-0.18%)
Overall STEP gets a fundamental rating of 4 out of 10. We evaluated STEP against 27 industry peers in the Energy Equipment & Services industry. No worries on liquidiy or solvency for STEP as it has an excellent financial health rating, but there are worries on the profitability. STEP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STEP had positive earnings in the past year.
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.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
STEP has a worse Return On Assets (-3.27%) than 85.19% 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 85.19% of its industry peers.
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 significantly below the industry average of 168.74%.
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
The Operating Margin of STEP (4.32%) is worse than 74.07% of its industry peers.
Looking at the Gross Margin, with a value of 9.00%, STEP is doing worse than 81.48% of the companies in the same industry.
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.
The number of shares outstanding for STEP has been reduced 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP has a Altman-Z score of 2.71. This is in the better half of the industry: STEP outperforms 66.67% 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 has a Debt to FCF ratio of 1.52. This is amongst the best in the industry. STEP outperforms 88.89% of its industry peers.
STEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
STEP has a better Debt to Equity ratio (0.16) than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.73
WACC8.38%
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.
The Current ratio of STEP (1.57) is comparable to the rest of the industry.
A Quick Ratio of 1.25 indicates that STEP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, STEP perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.89%.
The Revenue has decreased by -6.25% in the past year.
STEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.40% yearly.
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 12.70% 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 -4.17% yearly.
EPS Next Y23.47%
EPS Next 2Y16.71%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue Next Year-5.15%
Revenue Next 2Y-2.87%
Revenue Next 3Y-2.01%
Revenue Next 5Y-4.17%
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
STEP is valuated quite expensively with a Price/Earnings ratio of 54.70.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, STEP is valued quite expensively.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of STEP.
The rest of the industry has a similar Price/Forward Earnings ratio as STEP.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.7 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STEP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, STEP is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STEP does not grow enough to justify the current Price/Earnings ratio.
STEP's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y16.71%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (11/11/2025, 7:00:00 PM)
5.47
-0.01 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners21.14%
Inst Owner ChangeN/A
Ins Owners1.33%
Ins Owner ChangeN/A
Market Cap398.60M
Revenue(TTM)939.19M
Net Income(TTM)-20.06M
Analysts76.36
Price Target5.56 (1.65%)
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)4.64%
PT rev (3m)9.78%
EPS NQ rev (1m)-8.82%
EPS NQ rev (3m)-29.55%
EPS NY rev (1m)-5.35%
EPS NY rev (3m)-19.06%
Revenue NQ rev (1m)2.03%
Revenue NQ rev (3m)-6.8%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.7 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.42 | ||
| P/FCF | 8.73 | ||
| P/OCF | 3.54 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)0.1
EY1.83%
EPS(NY)0.52
Fwd EY9.46%
FCF(TTM)0.63
FCFY11.45%
OCF(TTM)1.55
OCFY28.26%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)2.33
PEG (5Y)N/A
Graham Number3.47
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
ROICexgc growth 3YN/A
ROICexgc 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 | 2.71 |
F-Score6
WACC8.38%
ROIC/WACC0.73
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 Y23.47%
EPS Next 2Y16.71%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.15%
Revenue Next 2Y-2.87%
Revenue Next 3Y-2.01%
Revenue Next 5Y-4.17%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.22%
EBIT Next 3Y28.94%
EBIT Next 5Y15.38%
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%
STEP ENERGY SERVICES LTD / STEP.CA FAQ
Can you provide the ChartMill fundamental rating for STEP ENERGY SERVICES LTD?
ChartMill assigns a fundamental rating of 4 / 10 to STEP.CA.
Can you provide the valuation status for STEP ENERGY SERVICES LTD?
ChartMill assigns a valuation rating of 4 / 10 to STEP ENERGY SERVICES LTD (STEP.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for STEP ENERGY SERVICES LTD?
STEP ENERGY SERVICES LTD (STEP.CA) has a profitability rating of 3 / 10.
What is the financial health of STEP ENERGY SERVICES LTD (STEP.CA) stock?
The financial health rating of STEP ENERGY SERVICES LTD (STEP.CA) is 7 / 10.
What is the earnings growth outlook for STEP ENERGY SERVICES LTD?
The Earnings per Share (EPS) of STEP ENERGY SERVICES LTD (STEP.CA) is expected to grow by 23.47% in the next year.