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STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis

NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD

56.24  -2.19 (-3.75%)

After market: 56.24 0 (0%)

Fundamental Rating

4

STEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 230 industry peers in the Capital Markets industry. The financial health of STEP is average, but there are quite some concerns on its profitability. STEP is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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3

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.
STEP Yearly Net Income VS EBIT VS OCF VS FCFSTEP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

Looking at the Return On Assets, with a value of -2.99%, STEP is doing worse than 80.87% of the companies in the same industry.
With a Return On Equity value of -62.06%, STEP is not doing good in the industry: 86.09% of the companies in the same industry are doing better.
Industry RankSector 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
STEP Yearly ROA, ROE, ROICSTEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1.3 Margins

STEP's Profit Margin has been stable in the last couple of years.
STEP's Operating Margin has declined in the last couple of years.
STEP has a Gross Margin of 87.59%. This is amongst the best in the industry. STEP outperforms 91.30% of its industry peers.
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 RankSector 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%
STEP Yearly Profit, Operating, Gross MarginsSTEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150 200

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4

2. Health

2.1 Basic Checks

The number of shares outstanding for STEP has been increased compared to 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.
STEP Yearly Shares OutstandingSTEP Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
STEP Yearly Total Debt VS Total AssetsSTEP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 1.07, 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 1.07, STEP is in line with its industry, outperforming 53.91% 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.
With an excellent Debt to FCF ratio value of 1.24, STEP belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.81, STEP is doing good in the industry, outperforming 60.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 1.24
Altman-Z 1.07
ROIC/WACCN/A
WACCN/A
STEP Yearly LT Debt VS Equity VS FCFSTEP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
STEP's Current ratio of 1.04 is in line compared to the rest of the industry. STEP outperforms 45.22% of its industry peers.
A Quick Ratio of 1.04 indicates that STEP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, STEP is in line with its industry, outperforming 49.13% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
STEP Yearly Current Assets VS Current LiabilitesSTEP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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9

3. Growth

3.1 Past

STEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.44%, which is quite impressive.
Measured over the past years, STEP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.65% on average per year.
The Revenue has grown by 117.42% in the past year. This is a very strong growth!
The Revenue has been growing by 22.56% on average over the past years. This is a very strong growth!
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

Based on estimates for the next years, STEP will show a very strong growth in Earnings Per Share. The EPS will grow by 23.58% on average per year.
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 Y51.48%
EPS Next 2Y24.22%
EPS Next 3Y23.58%
EPS Next 5YN/A
Revenue Next Year39.88%
Revenue Next 2Y26.93%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
STEP Yearly Revenue VS EstimatesSTEP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 500M 1B
STEP Yearly EPS VS EstimatesSTEP Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 33.08, the valuation of STEP can be described as expensive.
Based on the Price/Earnings ratio, STEP is valued a bit more expensive than 72.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of STEP to the average of the S&P500 Index (26.03), we can say STEP is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 29.88, the valuation of STEP can be described as expensive.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than 70.43% of the companies in the same industry.
STEP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.94.
Industry RankSector Rank
PE 33.08
Fwd PE 29.88
STEP Price Earnings VS Forward Price EarningsSTEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

STEP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 48.06
EV/EBITDA N/A
STEP Per share dataSTEP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

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)0.64
PEG (5Y)N/A
EPS Next 2Y24.22%
EPS Next 3Y23.58%

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1

5. Dividend

5.1 Amount

STEP has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 8.20, STEP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.36, STEP is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.63%

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
STEP Yearly Dividends per shareSTEP Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

STEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.57%
EPS Next 2Y24.22%
EPS Next 3Y23.58%
STEP Yearly Income VS Free CF VS DividendSTEP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

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STEPSTONE GROUP INC-CLASS A

NASDAQ:STEP (5/21/2025, 7:16:49 PM)

After market: 56.24 0 (0%)

56.24

-2.19 (-3.75%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-22 2025-05-22/amc
Inst Owners92.03%
Inst Owner Change3.27%
Ins Owners16.7%
Ins Owner Change0.56%
Market Cap6.52B
Analysts76.92
Price Target57.63 (2.47%)
Short Float %4.02%
Short Ratio3.58
Dividend
Industry RankSector Rank
Dividend Yield 1.63%
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP-54.57%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-28 2025-02-28 (0.24)
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)-16.91%
PT rev (3m)-15.85%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.72%
Valuation
Industry RankSector Rank
PE 33.08
Fwd PE 29.88
P/S 5.62
P/FCF 48.06
P/OCF 46.9
P/B 31.08
P/tB N/A
EV/EBITDA N/A
EPS(TTM)1.7
EY3.02%
EPS(NY)1.88
Fwd EY3.35%
FCF(TTM)1.17
FCFY2.08%
OCF(TTM)1.2
OCFY2.13%
SpS10
BVpS1.81
TBVpS-5.56
PEG (NY)0.64
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.07
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 Y51.48%
EPS Next 2Y24.22%
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 2Y26.93%
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%