STEPSTONE GROUP INC-CLASS A (STEP) Stock Fundamental Analysis
NASDAQ:STEP - Nasdaq - US85914M1071 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to STEP. STEP was compared to 238 industry peers in the Capital Markets industry. The financial health of STEP is average, but 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.
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.
STEP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STEP has a worse Return On Assets (-2.99%) than 79.83% 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 86.55% 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 90.76% 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
Compared to 1 year ago, STEP has more shares outstanding
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 1.14. 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 1.14, STEP is in line with its industry, outperforming 56.72% of the companies in the same 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.
The Debt to FCF ratio of STEP (1.24) is better than 87.82% of its industry peers.
STEP has a Debt/Equity ratio of 0.81. This is a neutral value indicating STEP is somewhat dependend on debt financing.
STEP has a better Debt to Equity ratio (0.81) than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.14 |
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 of 1.04. This is comparable to the rest of the industry: STEP outperforms 44.96% of its industry peers.
A Quick Ratio of 1.04 indicates that STEP should not have too much problems paying 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 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.
Looking at the last year, STEP shows a very strong growth in Revenue. 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)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
STEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.22% yearly.
Based on estimates for the next years, STEP will show a quite strong growth in Revenue. The Revenue will grow by 19.11% on average per year.
EPS Next Y-4.37%
EPS Next 2Y10.6%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue Next Year18.33%
Revenue Next 2Y20.8%
Revenue Next 3Y19.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 31.20, which means the current valuation is very expensive for STEP.
Compared to the rest of the industry, the Price/Earnings ratio of STEP indicates a slightly more expensive valuation: STEP is more expensive than 71.01% of the companies listed in the same industry.
STEP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.87.
With a Price/Forward Earnings ratio of 24.51, STEP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STEP is valued a bit more expensive than the industry average as 63.45% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, STEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 24.51 |
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 | 53.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, STEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.84, STEP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.36, STEP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 3Y11.22%
61.46
-0.77 (-1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.89%
Inst Owner Change1.8%
Ins Owners10.69%
Ins Owner Change-7.35%
Market Cap7.26B
Analysts76.92
Price Target64.94 (5.66%)
Short Float %3.57%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)2.69%
PT rev (3m)12.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 24.51 | ||
| P/S | 6.26 | ||
| P/FCF | 53.46 | ||
| P/OCF | 52.17 | ||
| P/B | 34.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.97
EY3.21%
EPS(NY)2.51
Fwd EY4.08%
FCF(TTM)1.15
FCFY1.87%
OCF(TTM)1.18
OCFY1.92%
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 | 1.14 |
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-4.37%
EPS Next 2Y10.6%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue 1Y (TTM)64.72%
Revenue growth 3Y-4.87%
Revenue growth 5Y21.29%
Sales Q2Q%64.71%
Revenue Next Year18.33%
Revenue Next 2Y20.8%
Revenue Next 3Y19.11%
Revenue Next 5YN/A
EBIT growth 1Y-209.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.03%
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