STEP ENERGY SERVICES LTD (STEP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STEP - CA85859H1055 - Common Stock
5.49 CAD
-0.01 (-0.18%)
Taking everything into account, STEP scores 4 out of 10 in our fundamental rating. STEP was compared to 29 industry peers in the Energy Equipment & Services industry. While STEP seems to be doing ok healthwise, 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.
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
STEP's Return On Assets of -1.30% is on the low side compared to the rest of the industry. STEP is outperformed by 75.86% of its industry peers.
Looking at the Return On Equity, with a value of -1.94%, STEP is doing worse than 75.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.60%, STEP is in line with its industry, outperforming 48.28% 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 significantly below the industry average of 163.40%.
The 3 year average ROIC (11.56%) for STEP is well above the current ROIC(6.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -1.94% | ||
| ROIC | 6.6% |
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 4.88%. This is in the lower half of the industry: STEP underperforms 65.52% of its industry peers.
Looking at the Gross Margin, with a value of 9.96%, STEP is doing worse than 75.86% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | N/A | ||
| GM | 9.96% |
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.
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.
Compared to 1 year ago, STEP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.88 indicates that STEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
STEP's Altman-Z score of 2.88 is fine compared to the rest of the industry. STEP outperforms 72.41% of its industry peers.
The Debt to FCF ratio of STEP is 1.93, which is an excellent value as it means it would take STEP, only 1.93 years of fcf income to pay off all of its debts.
STEP's Debt to FCF ratio of 1.93 is amongst the best of the industry. STEP outperforms 82.76% of its industry peers.
STEP has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
STEP has a Debt to Equity ratio of 0.13. This is in the better half of the industry: STEP outperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.79
WACC8.34%
2.3 Liquidity
STEP has a Current Ratio of 1.67. 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 (1.67) which is comparable to the rest of the industry.
STEP has a Quick Ratio of 1.32. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
STEP's Quick ratio of 1.32 is in line compared to the rest of the industry. STEP outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
STEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
Looking at the last year, STEP shows a decrease in Revenue. The Revenue has decreased by -9.19% in the last year.
The Revenue has been growing slightly by 7.40% on average over the past years.
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%212.5%
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-11.23%
3.2 Future
Based on estimates for the next years, STEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.56% on average per year.
The Revenue is expected to decrease by -4.17% on average over the next years.
EPS Next Y15.42%
EPS Next 2Y25.84%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-3.24%
Revenue Next 3Y-2.72%
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
With a Price/Earnings ratio of 20.33, STEP is valued on the expensive side.
STEP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.57, STEP is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of STEP.
Based on the Price/Forward Earnings ratio, STEP is valued a bit cheaper than 62.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, STEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 9.12 |
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 68.97% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 62.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.55 | ||
| EV/EBITDA | 3.7 |
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 16.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y25.84%
EPS Next 3Y16.56%
5. Dividend
5.1 Amount
STEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:STEP (12/17/2025, 7:00:00 PM)
5.49
-0.01 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners24.62%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap400.11M
Revenue(TTM)910.43M
Net Income(TTM)-7.82M
Analysts76.36
Price Target5.56 (1.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-30.97%
Min EPS beat(2)-43.07%
Max EPS beat(2)-18.87%
EPS beat(4)1
Avg EPS beat(4)-13%
Min EPS beat(4)-43.07%
Max EPS beat(4)17.5%
EPS beat(8)3
Avg EPS beat(8)-59.45%
EPS beat(12)5
Avg EPS beat(12)-39.78%
EPS beat(16)8
Avg EPS beat(16)-27.55%
Revenue beat(2)1
Avg Revenue beat(2)3.52%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)10.17%
Revenue beat(4)2
Avg Revenue beat(4)4.96%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)17.23%
Revenue beat(8)4
Avg Revenue beat(8)2.07%
Revenue beat(12)4
Avg Revenue beat(12)0.65%
Revenue beat(16)7
Avg Revenue beat(16)1.1%
PT rev (1m)0%
PT rev (3m)6.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)-6.52%
EPS NY rev (3m)-14.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.95%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.44 | ||
| P/FCF | 12.55 | ||
| P/OCF | 3.99 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.27
EY4.92%
EPS(NY)0.6
Fwd EY10.96%
FCF(TTM)0.44
FCFY7.97%
OCF(TTM)1.37
OCFY25.04%
SpS12.49
BVpS5.52
TBVpS5.51
PEG (NY)1.32
PEG (5Y)N/A
Graham Number5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -1.94% | ||
| ROCE | 9.16% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 6.64% | ||
| OM | 4.88% | ||
| PM (TTM) | N/A | ||
| GM | 9.96% | ||
| FCFM | 3.5% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 85.75% | ||
| Cap/Sales | 7.5% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 80.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.88 |
F-Score6
WACC8.34%
ROIC/WACC0.79
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)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%212.5%
EPS Next Y15.42%
EPS Next 2Y25.84%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y21.21%
Revenue growth 5Y7.4%
Sales Q2Q%-11.23%
Revenue Next Year-4.56%
Revenue Next 2Y-3.24%
Revenue Next 3Y-2.72%
Revenue Next 5Y-4.17%
EBIT growth 1Y-46.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year95.67%
EBIT Next 3Y27.51%
EBIT Next 5Y15.38%
FCF growth 1Y-51.65%
FCF growth 3Y33.78%
FCF growth 5Y19.89%
OCF growth 1Y-38.98%
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 5 / 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 6 / 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 15.42% in the next year.