STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - TSX:STEP - CA85859H1055 - Common Stock
5.38 CAD
0 (0%)
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 on the other hand it scores bad on growth.
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.
In multiple years STEP reported negative net income over the last 5 years.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -3.27%, STEP is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -5.13%, STEP is doing worse than 82.14% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Operating Margin, with a value of 4.32%, STEP is doing worse than 67.86% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STEP is still creating some value.
Compared to 1 year ago, STEP has less shares outstanding
Compared to 5 years ago, STEP has more shares outstanding
Compared to 1 year ago, STEP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP's Altman-Z score of 2.69 is fine compared to the rest of the industry. STEP outperforms 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 has a Debt to FCF ratio of 1.52. This is amongst the best in 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.
STEP's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. STEP outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.73
WACC8.34%
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.
A Quick Ratio of 1.25 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Quick ratio of 1.25 is in line compared to the rest of the industry. STEP outperforms 57.14% of its industry peers.
| 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%.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -6.25% in the last year.
Measured over the past years, STEP shows a small growth in Revenue. The Revenue has been growing by 7.40% on average per year.
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
STEP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.41% yearly.
STEP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.31% yearly.
EPS Next Y30.45%
EPS Next 2Y24.99%
EPS Next 3Y21.41%
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-2.67%
Revenue Next 3Y-3.24%
Revenue Next 5Y-4.31%
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
STEP is valuated quite expensively with a Price/Earnings ratio of 53.80.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (27.40), we can say STEP is valued expensively.
A Price/Forward Earnings ratio of 9.06 indicates a reasonable valuation of STEP.
64.29% of the companies in the same industry are more expensive than STEP, based on the Price/Forward Earnings ratio.
STEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.8 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 75.00% of the companies listed in the same industry.
STEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
STEP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as STEP's earnings are expected to grow with 21.41% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y24.99%
EPS Next 3Y21.41%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STEP (10/17/2025, 7:00:00 PM)
5.38
0 (0%)
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 Cap392.04M
Analysts76.67
Price Target5.31 (-1.3%)
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)1.63%
PT rev (3m)5.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.61%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-14.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.65%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.8 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.42 | ||
| P/FCF | 8.59 | ||
| P/OCF | 3.48 | ||
| P/B | 1 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.1
EY1.86%
EPS(NY)0.59
Fwd EY11.03%
FCF(TTM)0.63
FCFY11.64%
OCF(TTM)1.55
OCFY28.73%
SpS12.89
BVpS5.36
TBVpS5.35
PEG (NY)1.77
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 | 2.69 |
F-Score6
WACC8.34%
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 Y30.45%
EPS Next 2Y24.99%
EPS Next 3Y21.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.25%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-1.46%
Revenue Next Year-5.49%
Revenue Next 2Y-2.67%
Revenue Next 3Y-3.24%
Revenue Next 5Y-4.31%
EBIT growth 1Y-57.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.22%
EBIT Next 3Y28.94%
EBIT Next 5Y15.22%
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%