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
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| STEP | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.9% | 0.2% | 1.4% |
| 30 Day | -8.9% | -9.0% | -0.2% |
| 90 Day | 23.5% | 3.9% | 4.0% |
| 1 Year | 317.9%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 Year | n/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
1 week ago | Simply Wall St
Have Insiders Been Buying STEP Energy Services Ltd. (TSE:STEP) Shares?1 month ago | Simply Wall St
If You Had Bought STEP Energy Services (TSE:STEP) Stock A Year Ago, You Could Pocket A 260% Gain Today2 months ago | Simply Wall St
Is STEP Energy Services (TSE:STEP) Using Debt In A Risky Way?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 23:44 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.