STEP Energy Services Ltd.

TSX:STEP Stock Report

Market Cap: CA$366.0m

STEP Energy Services Valuation

Is STEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STEP (CA$5.11) is trading below our estimate of fair value (CA$9.18)

Significantly Below Fair Value: STEP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STEP?

Key metric: As STEP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for STEP. This is calculated by dividing STEP's market cap by their current earnings.
What is STEP's PE Ratio?
PE Ratio8.9x
EarningsCA$41.12m
Market CapCA$366.04m

Price to Earnings Ratio vs Peers

How does STEP's PE Ratio compare to its peers?

The above table shows the PE ratio for STEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.2x
CFW Calfrac Well Services
12x36.9%CA$340.6m
TOT Total Energy Services
10.4x24.9%CA$447.3m
SHLE Source Energy Services
1.3x-33.7%CA$230.3m
NOA North American Construction Group
13.2x36.4%CA$734.0m
STEP STEP Energy Services
8.9x21.1%CA$366.0m

Price-To-Earnings vs Peers: STEP is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (9.2x).

Price to Earnings Ratio vs Industry

How does STEP's PE Ratio compare vs other companies in the CA Energy Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SHLE Source Energy Services
1.3x-33.7%US$164.38m
No more companies available in this PE range
STEP 8.9xIndustry Avg. 12.9xNo. of Companies3PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STEP is good value based on its Price-To-Earnings Ratio (8.9x) compared to the North American Energy Services industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is STEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: STEP is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst STEP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$5.11
CA$5.29
+3.6%
6.9%CA$6.00CA$5.00n/a6
Nov ’25CA$3.56
CA$5.61
+57.5%
13.5%CA$7.00CA$4.50n/a7
Oct ’25CA$3.91
CA$5.96
+52.5%
13.9%CA$7.50CA$5.00n/a7
Sep ’25CA$4.28
CA$6.00
+40.2%
13.9%CA$7.50CA$5.00n/a7
Aug ’25CA$4.51
CA$6.14
+36.2%
13.6%CA$7.50CA$5.00n/a7
Jul ’25CA$4.08
CA$6.07
+48.8%
14.9%CA$7.50CA$5.00n/a7
Jun ’25CA$4.26
CA$5.88
+37.9%
15.9%CA$7.50CA$4.75n/a8
May ’25CA$3.90
CA$5.59
+43.4%
16.9%CA$7.50CA$4.50n/a8
Apr ’25CA$3.71
CA$5.72
+54.1%
19.0%CA$7.50CA$4.50n/a8
Mar ’25CA$4.30
CA$6.78
+57.7%
13.5%CA$8.50CA$5.50n/a8
Feb ’25CA$4.21
CA$6.72
+59.6%
13.1%CA$8.50CA$5.50n/a8
Jan ’25CA$3.92
CA$6.86
+74.9%
12.8%CA$8.50CA$5.50n/a7
Dec ’24CA$3.94
CA$6.93
+75.9%
12.5%CA$8.50CA$5.50n/a7
Nov ’24CA$4.43
CA$6.64
+50.0%
15.9%CA$8.50CA$5.00CA$3.567
Oct ’24CA$4.24
CA$6.50
+53.3%
18.4%CA$8.50CA$5.00CA$3.917
Sep ’24CA$4.25
CA$6.50
+52.9%
18.4%CA$8.50CA$5.00CA$4.287
Aug ’24CA$3.89
CA$6.34
+63.1%
22.2%CA$8.50CA$4.25CA$4.518
Jul ’24CA$3.26
CA$6.53
+100.3%
20.1%CA$8.50CA$5.00CA$4.088
Jun ’24CA$2.77
CA$6.57
+137.2%
21.7%CA$8.50CA$5.00CA$4.267
May ’24CA$3.20
CA$6.71
+109.8%
19.4%CA$8.50CA$5.00CA$3.907
Apr ’24CA$3.36
CA$8.50
+153.0%
20.6%CA$11.00CA$6.00CA$3.717
Mar ’24CA$4.90
CA$10.21
+108.5%
11.1%CA$12.00CA$8.50CA$4.307
Feb ’24CA$5.08
CA$10.21
+101.1%
11.1%CA$12.00CA$8.50CA$4.217
Jan ’24CA$5.33
CA$10.46
+96.3%
8.7%CA$11.75CA$9.00CA$3.927
Dec ’23CA$5.66
CA$10.61
+87.4%
8.5%CA$11.75CA$9.00CA$3.947
Nov ’23CA$6.43
CA$10.68
+66.1%
10.8%CA$12.50CA$9.00CA$4.437

Analyst Forecast: Target price is less than 20% higher than the current share price.

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