TSX:STEP

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STEP Energy Services

Market Cap

CA$111.0m

Last Updated

2021/07/31 23:44 UTC

Data Sources

Company Financials +

Executive Summary

STEP Energy Services Ltd., an oilfield service company, provides integrated coiled tubing, fracturing, and wireline solutions to service oil and natural gas wells in Canada and the United States. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has STEP Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STEP is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: STEP's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-8.9%

STEP

0.2%

CA Energy Services

1.4%

CA Market


1 Year Return

317.9%

STEP

74.6%

CA Energy Services

29.0%

CA Market

Return vs Industry: STEP exceeded the Canadian Energy Services industry which returned 74.7% over the past year.

Return vs Market: STEP exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

STEPIndustryMarket
7 Day-8.9%0.2%1.4%
30 Day-8.9%-9.0%-0.2%
90 Day23.5%3.9%4.0%
1 Year317.9%317.9%76.5%74.6%32.9%29.0%
3 Year-81.3%-81.3%-50.5%-54.6%31.3%18.6%
5 Yearn/a-61.4%-65.1%51.7%29.4%

Long-Term Price Volatility Vs. Market

How volatile is STEP Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is STEP Energy Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STEP (CA$1.63) is trading below our estimate of fair value (CA$3.75)

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


Price To Earnings Ratio

PE vs Industry: STEP is unprofitable, so we can't compare its PE Ratio to the Canadian Energy Services industry average.

PE vs Market: STEP is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STEP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: STEP's PB Ratio (0.6x) is in line with the CA Energy Services industry average.


Future Growth

How is STEP Energy Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

88.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STEP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: STEP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: STEP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: STEP's revenue (34.9% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: STEP's revenue (34.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STEP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has STEP Energy Services performed over the past 5 years?

-57.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STEP is currently unprofitable.

Growing Profit Margin: STEP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STEP is unprofitable, and losses have increased over the past 5 years at a rate of 57.6% per year.

Accelerating Growth: Unable to compare STEP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STEP is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (5%).


Return on Equity

High ROE: STEP has a negative Return on Equity (-38.38%), as it is currently unprofitable.


Financial Health

How is STEP Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: STEP's short term assets (CA$123.7M) exceed its short term liabilities (CA$79.3M).

Long Term Liabilities: STEP's short term assets (CA$123.7M) do not cover its long term liabilities (CA$217.8M).


Debt to Equity History and Analysis

Debt Level: STEP's debt to equity ratio (108.1%) is considered high.

Reducing Debt: STEP's debt to equity ratio has increased from 5.3% to 108.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable STEP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: STEP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 69.9% per year.


Dividend

What is STEP Energy Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STEP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STEP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STEP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STEP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STEP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Regan Davis (56 yo)

10.33yrs

Tenure

CA$609,018

Compensation

Mr. Regan Davis serves as the Chief Executive Officer of Step Energy Services Ltd. since March 2011 and served as its President from December 2013 until July 01, 2021. Mr. Davis has experience in the oil a...


CEO Compensation Analysis

Compensation vs Market: Regan's total compensation ($USD488.37K) is above average for companies of similar size in the Canadian market ($USD166.81K).

Compensation vs Earnings: Regan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: STEP's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: STEP's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

STEP Energy Services Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: STEP Energy Services Ltd.
  • Ticker: STEP
  • Exchange: TSX
  • Founded: 2011
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$110.990m
  • Shares outstanding: 68.09m
  • Website: https://www.stepenergyservices.com

Number of Employees


Location

  • STEP Energy Services Ltd.
  • Bow Valley Square II
  • 1200, 205-5th Avenue SW
  • Calgary
  • Alberta
  • T2P 2V7
  • Canada

Listings


Biography

STEP Energy Services Ltd., an oilfield service company, provides integrated coiled tubing, fracturing, and wireline solutions to service oil and natural gas wells in Canada and the United States. It also p...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 23:44
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.