STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
Overall STEP gets a fundamental rating of 4 out of 10. We evaluated STEP against 235 industry peers in the Capital Markets industry. While STEP seems to be doing ok healthwise, there are quite some concerns on its profitability. STEP shows excellent growth, but is valued quite expensive already.
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.
Of the past 5 years STEP 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.99%, STEP is doing worse than 80.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of -62.06%, STEP is doing worse than 87.23% of the companies in the same industry.
| 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 has a Gross Margin of 87.59%. This is amongst the best in the industry. STEP outperforms 91.49% of its industry peers.
In the last couple of years the Gross Margin of STEP has grown nicely.
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
STEP has more shares outstanding than it did 1 year ago.
STEP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STEP is higher compared to a year ago.
2.2 Solvency
STEP has an Altman-Z score of 1.12. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
STEP has a Altman-Z score (1.12) which is comparable to the rest of the industry.
The Debt to FCF ratio of STEP is 1.24, which is an excellent value as it means it would take STEP, only 1.24 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.24, STEP belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, STEP is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEP has a Current Ratio of 1.04. 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 1.04, STEP is in line with its industry, outperforming 44.68% of the companies in the same industry.
STEP has a Quick Ratio of 1.04. This is a normal value and indicates that STEP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of STEP (1.04) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 8.39% on average over the past years. This is quite good.
STEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 64.72%.
STEP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.29% yearly.
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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 22.46% on average over the next years. This is a very strong growth
EPS Next Y-4.37%
EPS Next 2Y10.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.85%
Revenue Next 2Y22.46%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
STEP is valuated quite expensively with a Price/Earnings ratio of 29.73.
68.94% of the companies in the same industry are cheaper than STEP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.53. STEP is around the same levels.
The Price/Forward Earnings ratio is 31.09, which means the current valuation is very expensive for STEP.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 70.64% of the companies are valued more cheaply.
STEP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 31.09 |
4.2 Price Multiples
STEP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.28 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.00, STEP is paying slightly less dividend.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 2Y10.6%
EPS Next 3YN/A
60.95
-0.31 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners96.29%
Inst Owner Change-0.11%
Ins Owners16.22%
Ins Owner Change-7.42%
Market Cap7.10B
Analysts76.92
Price Target63.24 (3.76%)
Short Float %3.95%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)0%
PT rev (3m)-8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 31.09 | ||
| P/S | 6.12 | ||
| P/FCF | 52.28 | ||
| P/OCF | 51.02 | ||
| P/B | 33.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY3.36%
EPS(NY)1.96
Fwd EY3.22%
FCF(TTM)1.17
FCFY1.91%
OCF(TTM)1.19
OCFY1.96%
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 | 1.12 |
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-4.37%
EPS Next 2Y10.6%
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 Year19.85%
Revenue Next 2Y22.46%
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