Buy Or Sell Opportunity • Jun 04
Now 27% overvalued Over the last 90 days, the stock has fallen 20% to AU$0.18. The fair value is estimated to be AU$0.14, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 12% in a year. Earnings are forecast to grow by 57% in the next year. Board Change • May 20
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 05
Step One Clothing Limited to Report First Half, 2026 Results on Feb 18, 2026 Step One Clothing Limited announced that they will report first half, 2026 results on Feb 18, 2026 Announcement • Aug 29
Step One Clothing Limited, Annual General Meeting, Nov 12, 2025 Step One Clothing Limited, Annual General Meeting, Nov 12, 2025. New Risk • Aug 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 155% Dividend yield: 11% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 155% Earnings are forecast to decline by an average of 10% per year for the foreseeable future. High level of non-cash earnings (29% accrual ratio). Minor Risk Market cap is less than US$100m (AU$110.4m market cap, or US$71.6m). Announcement • Aug 22
Step One Clothing Limited Announces Fully Franked Dividend for the Period of Six Months Ended June 30, 2025, Payable on September 12, 2025 Step One Clothing Limited announced fully franked dividend of 2.4 cents per share for the period of six months ended June 30, 2025. Ex Date is August 25, 2025, Record Date is August 26, 2025 and Payment Date is September 12, 2025. Declared Dividend • Aug 22
Final dividend of AU$0.024 announced Shareholders will receive a dividend of AU$0.024. Ex-date: 25th August 2025 Payment date: 12th September 2025 Dividend yield will be 11%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by earnings (39% earnings payout ratio) but not covered by cash flows (155% cash payout ratio). The dividend has increased by an average of 17% per year over the past 2 years. However, payments have been volatile during that time. EPS is expected to decline by 29% over the next 3 years. However, it would need to fall by 57% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Aug 20
Full year 2025 earnings released: EPS: AU$0.068 (vs AU$0.067 in FY 2024) Full year 2025 results: EPS: AU$0.068 (up from AU$0.067 in FY 2024). Revenue: AU$86.9m (up 2.8% from FY 2024). Net income: AU$12.7m (up 2.0% from FY 2024). Profit margin: 15% (in line with FY 2024). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Specialty Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Board Change • Aug 18
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jul 24
Step One Clothing Limited to Report Fiscal Year 2025 Results on Aug 20, 2025 Step One Clothing Limited announced that they will report fiscal year 2025 results on Aug 20, 2025 Board Change • Feb 04
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Feb 03
Step One Clothing Limited to Report Q2, 2025 Results on Feb 19, 2025 Step One Clothing Limited announced that they will report Q2, 2025 results on Feb 19, 2025 Board Change • Dec 24
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Non-Executive Director Kate Thompson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Oct 02
Independent Non-Executive Chairperson recently sold AU$70k worth of stock On the 30th of September, David Gallop sold around 40k shares on-market at roughly AU$1.76 per share. This transaction amounted to 15% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was David's only on-market trade for the last 12 months. Buy Or Sell Opportunity • Sep 26
Now 25% undervalued Over the last 90 days, the stock has risen 26% to AU$1.72. The fair value is estimated to be AU$2.29, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.4% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 26% in 2 years. Earnings are forecast to grow by 28% in the next 2 years. Buy Or Sell Opportunity • Aug 29
Now 24% undervalued Over the last 90 days, the stock has risen 30% to AU$1.76. The fair value is estimated to be AU$2.30, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.4% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 26% in 2 years. Earnings are forecast to grow by 28% in the next 2 years. Announcement • Aug 28
Step One Clothing Limited, Annual General Meeting, Nov 12, 2024 Step One Clothing Limited, Annual General Meeting, Nov 12, 2024. Announcement • Aug 23
Step One Clothing Limited Announces Dividend for the Six Months Ended June 30, 2024, Payable on September 13, 2024 Step One Clothing Limited announced dividend of AUD 0.02800000 for the six months ended June 30, 2024. Record Date is August 27, 2024. Ex Date is August 26, 2024. Payment Date is September 13, 2024. Reported Earnings • Aug 22
Full year 2024 earnings released: EPS: AU$0.067 (vs AU$0.046 in FY 2023) Full year 2024 results: EPS: AU$0.067 (up from AU$0.046 in FY 2023). Revenue: AU$84.5m (up 30% from FY 2023). Net income: AU$12.4m (up 44% from FY 2023). Profit margin: 15% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Specialty Retail industry in Australia. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to AU$1.80, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 15x in the Specialty Retail industry in Australia. Total returns to shareholders of 496% over the past year. Announcement • Jul 17
Step One Clothing Limited to Report Fiscal Year 2024 Results on Aug 21, 2024 Step One Clothing Limited announced that they will report fiscal year 2024 results on Aug 21, 2024 Buy Or Sell Opportunity • Jul 01
Now 24% overvalued Over the last 90 days, the stock has fallen 15% to AU$1.44. The fair value is estimated to be AU$1.16, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last year. Earnings per share has grown by 72%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to AU$1.47, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 14x in the Specialty Retail industry in Australia. Total returns to shareholders of 462% over the past year. Valuation Update With 7 Day Price Move • May 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to AU$1.39, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 15x in the Specialty Retail industry in Australia. Total returns to shareholders of 360% over the past year. Recent Insider Transactions • Mar 14
Board Member recently sold AU$4.4m worth of stock On the 13th of March, Michael Reddie sold around 3m shares on-market at roughly AU$1.75 per share. This transaction amounted to 27% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to AU$1.58, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 15x in the Specialty Retail industry in Australia. Reported Earnings • Feb 21
First half 2024 earnings released: EPS: AU$0.038 (vs AU$0.028 in 1H 2023) First half 2024 results: EPS: AU$0.038 (up from AU$0.028 in 1H 2023). Revenue: AU$45.1m (up 26% from 1H 2023). Net income: AU$7.11m (up 35% from 1H 2023). Profit margin: 16% (up from 15% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Specialty Retail industry in Australia. Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to AU$1.14, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 15x in the Specialty Retail industry in Australia. Reported Earnings • Aug 25
Full year 2023 earnings released Full year 2023 results: Revenue: AU$65.2m (down 9.7% from FY 2022). Net income: AU$8.62m (up AU$11.6m from FY 2022). Profit margin: 13% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Specialty Retail industry in Australia. New Risk • Aug 24
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 2.5% per year for the foreseeable future. High level of non-cash earnings (72% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Share price has been volatile over the past 3 months (12% average weekly change). Market cap is less than US$100m (AU$74.1m market cap, or US$48.0m). Announcement • Jun 26
Step One Clothing Limited to Report Fiscal Year 2023 Final Results on Aug 24, 2023 Step One Clothing Limited announced that they will report fiscal year 2023 final results on Aug 24, 2023 Board Change • Apr 03
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (3 non-independent directors). Founder, CEO & Executive Director Greg Taylor is the most experienced director on the board, commencing their role in 2017. Independent Non-Executive Director Kate Thompson was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. 
