STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
Taking everything into account, STEP scores 5 out of 10 in our fundamental rating. STEP was compared to 230 industry peers in the Capital Markets industry. STEP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. STEP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year STEP was profitable.
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.
In the past 5 years STEP always reported a positive cash flow from operatings.
1.2 Ratios
STEP's Return On Assets of -2.99% is on the low side compared to the rest of the industry. STEP is outperformed by 80.43% of its industry peers.
STEP's Return On Equity of -62.06% is on the low side compared to the rest of the industry. STEP is outperformed by 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.99% | ||
| ROE | -62.06% | ||
| ROIC | N/A |
ROA(3y)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STEP's Profit Margin has been stable in the last couple of years.
In the last couple of years the Operating Margin of STEP has declined.
With an excellent Gross Margin value of 87.59%, STEP belongs to the best of the industry, outperforming 90.87% of the companies in the same industry.
STEP's Gross Margin has been stable 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 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y6.94%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
Compared to 1 year ago, STEP has more shares outstanding
STEP has more shares outstanding than it did 5 years ago.
STEP has a worse debt/assets ratio than last year.
2.2 Solvency
STEP has an Altman-Z score of 0.93. 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 (0.93) which is comparable to the rest of the 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.
The Debt to FCF ratio of STEP (1.24) is better than 85.22% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
STEP's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. STEP outperforms 60.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for STEP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 0.93 |
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.
STEP has a Current ratio (1.04) which is comparable to the rest of the 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
The Earnings Per Share has grown by an impressive 50.44% over the past year.
The earnings per share for STEP have been decreasing by -22.65% on average. This is quite bad
STEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 117.42%.
Measured over the past years, STEP shows a very strong growth in Revenue. The Revenue has been growing by 22.56% on average per year.
EPS 1Y (TTM)50.44%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%18.92%
Revenue 1Y (TTM)117.42%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%123.79%
3.2 Future
The Earnings Per Share is expected to grow by 23.58% on average over the next years. This is a very strong growth
Based on estimates for the next years, STEP will show a very strong growth in Revenue. The Revenue will grow by 24.71% on average per year.
EPS Next Y52.18%
EPS Next 2Y26.33%
EPS Next 3Y23.58%
EPS Next 5YN/A
Revenue Next Year39.88%
Revenue Next 2Y27.41%
Revenue Next 3Y24.71%
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
With a Price/Earnings ratio of 30.67, STEP can be considered very expensive at the moment.
70.87% 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 (28.88), we can say STEP is valued inline with the index average.
STEP is valuated quite expensively with a Price/Forward Earnings ratio of 26.78.
66.09% of the companies in the same industry are cheaper than STEP, based on the Price/Forward Earnings ratio.
STEP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 26.78 |
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 | 44.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STEP's earnings are expected to grow with 23.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y26.33%
EPS Next 3Y23.58%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.91%.
The stock price of STEP dropped by -21.96% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
STEP's Dividend Yield is slightly below the industry average, which is at 8.30.
STEP's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
STEP has been paying a dividend for over 5 years, so it has already some track record.
The dividend of STEP decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.57%
EPS Next 2Y26.33%
EPS Next 3Y23.58%
NASDAQ:STEP (5/1/2025, 2:55:00 PM)
52.14
+2.13 (+4.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.03%
Inst Owner Change0.12%
Ins Owners16.7%
Ins Owner Change0.5%
Market Cap6.05B
Analysts76.92
Price Target59.67 (14.44%)
Short Float %3.87%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-54.57%
Div Incr Years2
Div Non Decr Years2
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)2
Avg Revenue beat(2)36.8%
Min Revenue beat(2)26.51%
Max Revenue beat(2)47.09%
Revenue beat(4)3
Avg Revenue beat(4)21.47%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)47.09%
Revenue beat(8)3
Avg Revenue beat(8)8.61%
Revenue beat(12)4
Avg Revenue beat(12)-22.63%
Revenue beat(16)8
Avg Revenue beat(16)38.02%
PT rev (1m)-13.97%
PT rev (3m)-17.36%
EPS NQ rev (1m)-2.87%
EPS NQ rev (3m)-5.41%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 26.78 | ||
| P/S | 5.21 | ||
| P/FCF | 44.55 | ||
| P/OCF | 43.48 | ||
| P/B | 28.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.7
EY3.26%
EPS(NY)1.95
Fwd EY3.73%
FCF(TTM)1.17
FCFY2.24%
OCF(TTM)1.2
OCFY2.3%
SpS10
BVpS1.81
TBVpS-5.56
PEG (NY)0.59
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)1.88%
ROA(5y)2.08%
ROE(3y)13.08%
ROE(5y)12.87%
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)10.99%
ROCE(5y)24.52%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-16.12%
OM growth 5Y-1.61%
PM growth 3Y0.82%
PM growth 5YN/A
GM growth 3Y6.94%
GM growth 5Y-0.81%
F-Score3
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 | 0.93 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)20.26%
Cap/Depr(5y)19.14%
Cap/Sales(3y)3.97%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.44%
EPS 3Y-22.65%
EPS 5YN/A
EPS Q2Q%18.92%
EPS Next Y52.18%
EPS Next 2Y26.33%
EPS Next 3Y23.58%
EPS Next 5YN/A
Revenue 1Y (TTM)117.42%
Revenue growth 3Y-3.25%
Revenue growth 5Y22.56%
Sales Q2Q%123.79%
Revenue Next Year39.88%
Revenue Next 2Y27.41%
Revenue Next 3Y24.71%
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3Y-18.85%
EBIT growth 5Y20.59%
EBIT Next Year88.65%
EBIT Next 3Y36.72%
EBIT Next 5YN/A
FCF growth 1Y-24.76%
FCF growth 3Y-1.39%
FCF growth 5Y23.95%
OCF growth 1Y-24.41%
OCF growth 3Y2.66%
OCF growth 5Y25.69%