STEPSTONE GROUP INC-CLASS A (STEP)
US85914M1071 - Common Stock
STEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. STEP has an average financial health and profitability rating. STEP has a expensive valuation and it also scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: STEP reported negative net income in multiple years.
Each year in the past 5 years STEP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.62%, STEP is doing worse than 62.98% of the companies in the same industry.
With a Return On Equity value of 7.36%, STEP is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
STEP's Return On Invested Capital of 7.07% is fine compared to the rest of the industry. STEP outperforms 73.08% of its industry peers.
STEP had an Average Return On Invested Capital over the past 3 years of 19.44%. This is significantly above the industry average of 10.67%.
The last Return On Invested Capital (7.07%) for STEP is well below the 3 year average (19.44%), which needs to be investigated, but indicates that STEP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 7.36% | ||
| ROIC | 7.07% |
ROA(3y)2.95%
ROA(5y)1.77%
ROE(3y)15.48%
ROE(5y)9.29%
ROIC(3y)19.44%
ROIC(5y)21.7%
1.3 Margins
STEP's Profit Margin of 10.51% is on the low side compared to the rest of the industry. STEP is outperformed by 62.98% of its industry peers.
In the last couple of years the Profit Margin of STEP has remained more or less at the same level.
STEP has a Operating Margin of 30.47%. This is comparable to the rest of the industry: STEP outperforms 50.48% of its industry peers.
With an excellent Gross Margin value of 92.70%, STEP belongs to the best of the industry, outperforming 91.83% of the companies in the same industry.
In the last couple of years the Gross Margin of STEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.47% | ||
| PM (TTM) | 10.51% | ||
| GM | 92.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-0.4%
GM growth 3Y44.55%
GM growth 5Y24.04%
2. Health
2.1 Basic Checks
Compared to 1 year ago, STEP has more shares outstanding
Compared to 5 years ago, STEP has more shares outstanding
The debt/assets ratio for STEP is higher compared to a year ago.
2.2 Solvency
STEP has an Altman-Z score of 1.42. This is a bad value and indicates that STEP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.42, STEP is in the better half of the industry, outperforming 61.06% of the companies in the same industry.
The Debt to FCF ratio of STEP is 0.94, which is an excellent value as it means it would take STEP, only 0.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STEP (0.94) is better than 86.06% of its industry peers.
STEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
STEP has a Debt to Equity ratio of 0.16. This is in the better half of the industry: STEP outperforms 79.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.42 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEP has a Current Ratio of 1.29. 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 Current ratio value of 1.29, STEP perfoms like the industry average, outperforming 54.81% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that STEP should not have too much problems paying its short term obligations.
STEP has a Quick ratio of 1.29. This is comparable to the rest of the industry: STEP outperforms 54.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for STEP have decreased strongly by -18.71% in the last year.
The Revenue has grown by 306.24% in the past year. This is a very strong growth!
EPS 1Y (TTM)-18.71%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q37.04%
Revenue 1Y (TTM)306.24%
Revenue growth 3YN/A
Revenue growth 5YN/A
Revenue growth Q2Q-208.44%
3.2 Future
STEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.97% yearly.
STEP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.51% yearly.
EPS Next Y-5.18%
EPS Next 2Y16.34%
EPS Next 3Y19.97%
EPS Next 5YN/A
Revenue Next Year0.91%
Revenue Next 2Y11.57%
Revenue Next 3Y13.51%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.68 indicates a quite expensive valuation of STEP.
78.85% 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 28.28. STEP is around the same levels.
Based on the Price/Forward Earnings ratio of 21.83, the valuation of STEP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
STEP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 21.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STEP indicates a somewhat cheap valuation: STEP is cheaper than 65.87% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as STEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 18.92 |
4.3 Compensation for Growth
STEP's earnings are expected to grow with 19.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.34%
EPS Next 3Y19.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, STEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.28, STEP is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, STEP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
STEP has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STEP pays out 120.53% of its income as dividend. This is not a sustainable payout ratio.
DP120.53%
EPS Next 2Y16.34%
EPS Next 3Y19.97%
STEPSTONE GROUP INC-CLASS A
NASDAQ:STEP (5/3/2024, 7:20:02 PM)
After market: 36.93 0 (0%)36.93
+0.4 (+1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 21.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 7.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.47% | ||
| PM (TTM) | 10.51% | ||
| GM | 92.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)306.24%
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y