STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
STEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. While STEP seems to be doing ok healthwise, there are quite some concerns on its profitability. STEP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
STEP had positive earnings in the past year.
In the past year STEP had a positive cash flow from operations.
In multiple years STEP reported negative net income over the last 5 years.
Of the past 5 years STEP 4 years had a positive operating cash flow.
1.2 Ratios
STEP has a worse Return On Assets (-2.99%) than 79.74% of its industry peers.
The Return On Equity of STEP (-62.06%) is worse than 86.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| ROIC | N/A |
ROA(3y)-0.97%
ROA(5y)1.29%
ROE(3y)-28.2%
ROE(5y)-7.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STEP's Gross Margin of 87.59% is amongst the best of the industry. STEP outperforms 90.52% of its industry peers.
STEP's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for STEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 87.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.98%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
Compared to 1 year ago, STEP has more shares outstanding
The number of shares outstanding for STEP has been increased compared to 5 years ago.
Compared to 1 year ago, STEP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that STEP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, STEP is in line with its industry, outperforming 54.31% of the companies in the same industry.
STEP has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
STEP has a Debt to FCF ratio of 1.24. This is amongst the best in the industry. STEP outperforms 86.64% of its industry peers.
STEP has a Debt/Equity ratio of 0.81. This is a neutral value indicating STEP is somewhat dependend on debt financing.
STEP's Debt to Equity ratio of 0.81 is fine compared to the rest of the industry. STEP outperforms 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, STEP is in line with its industry, outperforming 44.40% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, STEP perfoms like the industry average, outperforming 48.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.03%, which is quite impressive.
STEP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.39% yearly.
Looking at the last year, STEP shows a very strong growth in Revenue. The Revenue has grown by 64.72%.
The Revenue has been growing by 21.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68.03%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%106.06%
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%39.11%
3.2 Future
Based on estimates for the next years, STEP will show a small growth in Earnings Per Share. The EPS will grow by 5.98% on average per year.
The Revenue is expected to grow by 20.76% on average over the next years. This is a very strong growth
EPS Next Y-8.18%
EPS Next 2Y5.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.29%
Revenue Next 2Y20.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.91, the valuation of STEP can be described as expensive.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than the industry average as 69.83% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.55. STEP is around the same levels.
Based on the Price/Forward Earnings ratio of 30.39, the valuation of STEP can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 70.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. STEP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as STEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.69%.
STEP's Dividend Yield is slightly below the industry average, which is at 8.22.
Compared to the average S&P500 Dividend Yield of 2.39, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
STEP has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of STEP are negative and hence is the payout ratio. STEP will probably not be able to sustain this dividend level.
DP-54.57%
EPS Next 2Y5.98%
EPS Next 3YN/A
57.21
-0.23 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.03%
Inst Owner Change3.25%
Ins Owners16.7%
Ins Owner Change-4.46%
Market Cap6.66B
Analysts76.92
Price Target63.24 (10.54%)
Short Float %3.96%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-54.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.48%
Min EPS beat(2)-5.06%
Max EPS beat(2)-3.9%
EPS beat(4)2
Avg EPS beat(4)9.87%
Min EPS beat(4)-5.06%
Max EPS beat(4)33.36%
EPS beat(8)3
Avg EPS beat(8)5.94%
EPS beat(12)5
Avg EPS beat(12)5.57%
EPS beat(16)9
Avg EPS beat(16)15.15%
Revenue beat(2)1
Avg Revenue beat(2)4.66%
Min Revenue beat(2)-17.2%
Max Revenue beat(2)26.51%
Revenue beat(4)2
Avg Revenue beat(4)5.4%
Min Revenue beat(4)-17.2%
Max Revenue beat(4)26.51%
Revenue beat(8)2
Avg Revenue beat(8)0.58%
Revenue beat(12)3
Avg Revenue beat(12)-27.99%
Revenue beat(16)7
Avg Revenue beat(16)34%
PT rev (1m)5.98%
PT rev (3m)-11.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.53%
EPS NY rev (1m)-3.32%
EPS NY rev (3m)-12.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 30.39 | ||
| P/S | 5.74 | ||
| P/FCF | 49.07 | ||
| P/OCF | 47.89 | ||
| P/B | 31.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY3.58%
EPS(NY)1.88
Fwd EY3.29%
FCF(TTM)1.17
FCFY2.04%
OCF(TTM)1.19
OCFY2.09%
SpS9.96
BVpS1.8
TBVpS-5.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 87.59% | ||
| FCFM | 11.7% |
ROA(3y)-0.97%
ROA(5y)1.29%
ROE(3y)-28.2%
ROE(5y)-7.16%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y5.98%
GM growth 5Y2.12%
F-Score4
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 7.36% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.05 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.03%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%106.06%
EPS Next Y-8.18%
EPS Next 2Y5.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%39.11%
Revenue Next Year20.29%
Revenue Next 2Y20.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year6.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.33%
OCF growth 3YN/A
OCF growth 5YN/A