STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
USA - NASDAQ:STEP - US85914M1071 - Common Stock
66.96 USD
+2.29 (+3.54%)
66.96 USD
0 (0%)
Taking everything into account, STEP scores 4 out of 10 in our fundamental rating. STEP was compared to 237 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 shows excellent growth, but is valued quite expensive already.
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
STEP has a Return On Assets of -2.99%. This is in the lower half of the industry: STEP underperforms 79.32% of its industry peers.
STEP has a Return On Equity of -62.06%. This is amonst the worse of the industry: STEP underperforms 85.65% 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
The Gross Margin of STEP (87.59%) is better than 91.14% 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
The number of shares outstanding for STEP has been increased compared to 1 year ago.
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 1.20, we must say that STEP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STEP (1.20) 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.
STEP has a Debt to FCF ratio of 1.24. This is amongst the best in the industry. STEP outperforms 89.87% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that STEP is somewhat dependend on debt financing.
STEP has a Debt to Equity ratio (0.81) which is comparable to the rest of the industry.
Although STEP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.2 |
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 44.73% 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.
With a Quick ratio value of 1.04, STEP perfoms like the industry average, outperforming 48.95% of the companies in the same 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 36.81% over the past year.
The Earnings Per Share has been growing by 8.39% on average over the past years. This is quite good.
The Revenue has grown by 64.72% in the past year. This is a very strong growth!
STEP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.29% yearly.
EPS 1Y (TTM)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
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 15.17% on average per year.
The Revenue is expected to grow by 20.84% on average over the next years. This is a very strong growth
EPS Next Y-4.59%
EPS Next 2Y12.05%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue Next Year25.94%
Revenue Next 2Y22.85%
Revenue Next 3Y20.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.99, which means the current valuation is very expensive for STEP.
72.57% 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 (27.86), we can say STEP is valued slightly more expensively.
The Price/Forward Earnings ratio is 26.02, 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 65.82% of the companies in the same industry.
STEP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.99 | ||
| Fwd PE | 26.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
STEP's earnings are expected to grow with 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.05%
EPS Next 3Y15.17%
5. Dividend
5.1 Amount
STEP has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.30, STEP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.41, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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
STEP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.57%
EPS Next 2Y12.05%
EPS Next 3Y15.17%
66.96
+2.29 (+3.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change1.76%
Ins Owners10.66%
Ins Owner Change-8.03%
Market Cap7.91B
Analysts78.46
Price Target71.23 (6.38%)
Short Float %3.38%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)7.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-1.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)3.02%
Revenue NY rev (3m)4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.99 | ||
| Fwd PE | 26.02 | ||
| P/S | 6.82 | ||
| P/FCF | 58.24 | ||
| P/OCF | 56.84 | ||
| P/B | 37.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.97
EY2.94%
EPS(NY)2.57
Fwd EY3.84%
FCF(TTM)1.15
FCFY1.72%
OCF(TTM)1.18
OCFY1.76%
SpS9.82
BVpS1.78
TBVpS-5.46
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 | 1.2 |
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)36.81%
EPS 3Y8.39%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y-4.59%
EPS Next 2Y12.05%
EPS Next 3Y15.17%
EPS Next 5YN/A
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
Revenue Next Year25.94%
Revenue Next 2Y22.85%
Revenue Next 3Y20.84%
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.14%
EBIT Next 3Y22.08%
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