73.19 USD
-0.07 (-0.1%)
73.19 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to STEP. STEP was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of STEP have multiple concerns. STEP is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year STEP was profitable.
- STEP had a positive operating cash flow in the past year.
- In multiple years STEP reported negative net income over the last 5 years.
- STEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -11.54%, STEP is not doing good in the industry: 83.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.54% | ||
| ROE | N/A | ||
| 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 79.38% is amongst the best of the industry. STEP outperforms 84.39% of its industry peers.
- In the last couple of years the Gross Margin of STEP has grown nicely.
- STEP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 79.38% |
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
- STEP has more shares outstanding than it did 1 year ago.
- STEP has more shares outstanding than it did 5 years ago.
- STEP has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.15, we must say that STEP is in the distress zone and has some risk of bankruptcy.
- STEP has a worse Altman-Z score (0.15) than 71.73% of its industry peers.
- The Debt to FCF ratio of STEP is 14.26, which is on the high side as it means it would take STEP, 14.26 years of fcf income to pay off all of its debts.
- STEP's Debt to FCF ratio of 14.26 is in line compared to the rest of the industry. STEP outperforms 59.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.26 | ||
| Altman-Z | 0.15 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- STEP has a Current Ratio of 0.79. This is a bad value and indicates that STEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- STEP's Current ratio of 0.79 is on the low side compared to the rest of the industry. STEP is outperformed by 63.71% of its industry peers.
- STEP has a Quick Ratio of 0.79. This is a bad value and indicates that STEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of STEP (0.79) is worse than 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.38%, 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.
- STEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 91.10%.
- STEP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.29% yearly.
EPS 1Y (TTM)26.38%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)91.1%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%22.68%
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 15.99% on average per year.
- The Revenue is expected to grow by 22.29% on average over the next years. This is a very strong growth
EPS Next Y3.24%
EPS Next 2Y13.64%
EPS Next 3Y15.99%
EPS Next 5YN/A
Revenue Next Year20.17%
Revenue Next 2Y23.67%
Revenue Next 3Y22.29%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 35.53, the valuation of STEP can be described as expensive.
- 76.79% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (28.60), we can say STEP is valued slightly more expensively.
- The Price/Forward Earnings ratio is 27.65, which means the current valuation is very expensive for STEP.
- 65.40% of the companies in the same industry are cheaper than STEP, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, STEP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.53 | ||
| Fwd PE | 27.65 |
4.2 Price Multiples
- STEP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 457.28 | ||
| EV/EBITDA | N/A |
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 15.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.95
PEG (5Y)N/A
EPS Next 2Y13.64%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
- STEP has a Yearly Dividend Yield of 1.49%.
- Compared to an average industry Dividend Yield of 5.87, STEP has a dividend in line with its industry peers.
- STEP's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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-17.56%
EPS Next 2Y13.64%
EPS Next 3Y15.99%
STEPSTONE GROUP INC-CLASS A / STEP FAQ
Can you provide the ChartMill fundamental rating for STEPSTONE GROUP INC-CLASS A?
ChartMill assigns a fundamental rating of 3 / 10 to STEP.
What is the valuation status of STEPSTONE GROUP INC-CLASS A (STEP) stock?
ChartMill assigns a valuation rating of 1 / 10 to STEPSTONE GROUP INC-CLASS A (STEP). This can be considered as Overvalued.
Can you provide the profitability details for STEPSTONE GROUP INC-CLASS A?
STEPSTONE GROUP INC-CLASS A (STEP) has a profitability rating of 3 / 10.
What is the expected EPS growth for STEPSTONE GROUP INC-CLASS A (STEP) stock?
The Earnings per Share (EPS) of STEPSTONE GROUP INC-CLASS A (STEP) is expected to grow by 3.24% in the next year.
Can you provide the dividend sustainability for STEP stock?
The dividend rating of STEPSTONE GROUP INC-CLASS A (STEP) is 2 / 10 and the dividend payout ratio is -17.56%.