Step Energy Services Ltd
TSX:STEP
Intrinsic Value
STEP Energy Services Ltd. engages in the provision of specialized and fully integrated coiled tubing and fracturing solutions to service oil and natural gas wells. [ Read More ]
The intrinsic value of one
STEP
stock under the Base Case scenario is
12.77
CAD.
Compared to the current market price of 3.97 CAD,
Step Energy Services Ltd
is
Undervalued by 69%.
STEP could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Step Energy Services Ltd's market capitalization is 286.6m CAD.
STEP stock price is 3.97 CAD.
STEP stock price (3.97 CAD) is 69% less than its Intrinsic Value (12.77 CAD).
STEP has upside potential of 50% compared to the average analyst price target.
Open Wall St Estimates
STEP's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 11%.
STEP's Revenue is forecast to grow at a rate of 4% per year over the next 3 years.
STEP's Revenue has dropped by 4% over the past 12 months.
STEP's ROE (Return on Equity) for the past 12 months is positive and is equal to 15%.
STEP's Altman Z-Score is equal to 2.4.
STEP has positive Free Cash Flow for the last twelve months.
STEP's short-term assets (155m CAD) exceed its short-term liabilties (113m CAD).
STEP has positive Gross Profit for the last twelve months.
STEP has positive three-year average ROE (Return on Equity): 5%. The company is efficient at transforming stockholders' equity into net income.
STEP has a very low three-year average ROIC (Return on Invested Capital): 4%. The company is not efficient at using invested capital to generate operating income.
STEP has positive Operating Income for the last twelve months.
STEP has positive Net Income for the last twelve months.
STEP's ROE (Return on Equity) has significantly increased in the last 3 years from -31% to 15%.
STEP's ROIC (Return on Invested Capital) has significantly increased in the last 3 years from -15% to 11%.
STEP's Revenue has been growing by an exceptional 37% per year for the last 3 years.
STEP's long-term assets (607m CAD) exceed its long-term liabilties (251m CAD).
STEP generates enough operating income (78m CAD) to cover interest payments on its debt (10m CAD).
STEP's D/E (Debt to Equity) is very low and is equal to 0.3.
STEP has positive Net Debt. This means that the company has more debt (105m CAD) than cash and short-term investments (2m CAD).
Valuation Backtest
Step Energy Services Ltd
Run backtest to discover the historical profit from buying and selling
STEP
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Step Energy Services Ltd
Balance Sheet Decomposition
Step Energy Services Ltd
| Current Assets | 154.7m |
| Cash & Short-Term Investments | 1.8m |
| Receivables | 96.2m |
| Other Current Assets | 56.8m |
| Non-Current Assets | 451.8m |
| PP&E | 447.6m |
| Intangibles | 122k |
| Other Non-Current Assets | 4.1m |
| Current Liabilities | 112.6m |
| Accounts Payable | 91.8m |
| Other Current Liabilities | 20.8m |
| Non-Current Liabilities | 138.4m |
| Long-Term Debt | 104.9m |
| Other Non-Current Liabilities | 33.5m |
Earnings Waterfall
Step Energy Services Ltd
|
Revenue
|
945.7m
CAD
|
|
Cost of Revenue
|
-829.6m
CAD
|
|
Gross Profit
|
116.1m
CAD
|
|
Operating Expenses
|
-38.3m
CAD
|
|
Operating Income
|
77.8m
CAD
|
|
Other Expenses
|
-27.4m
CAD
|
|
Net Income
|
50.4m
CAD
|
Free Cash Flow Analysis
Step Energy Services Ltd
What is Free Cash Flow?
STEP Profitability Score
Profitability Due Diligence
Step Energy Services Ltd's profitability score is 51/100. The higher the profitability score, the more profitable the company is.
Score
Step Energy Services Ltd's profitability score is 51/100. The higher the profitability score, the more profitable the company is.
STEP Solvency Score
Solvency Due Diligence
Step Energy Services Ltd's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Score
Step Energy Services Ltd's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
STEP Price Targets Summary
Step Energy Services Ltd
According to Wall Street analysts, the average 1-year price target for
STEP
is 5.96 CAD
with a low forecast of 4.55 CAD and a high forecast of 7.88 CAD.
Shareholder Return
STEP Price
Step Energy Services Ltd
| Average Annual Return | 53.59% |
| Standard Deviation of Annual Returns | 115.97% |
| Max Drawdown | -89% |
| Market Capitalization | 286.6m CAD |
| Shares Outstanding | 72 233 100 |
| Percentage of Shares Shorted | 0.7% |
Company Profile
Step Energy Services Ltd
Country
Industry
Market Cap
Dividend Yield
Description
STEP Energy Services Ltd. engages in the provision of specialized and fully integrated coiled tubing and fracturing solutions to service oil and natural gas wells. The company is headquartered in Calgary, Alberta. The company went IPO on 2017-05-02. The firm specializes in coiled tubing and associated pumping and support equipment to service the deep horizontal well market in Western Canada and south Texas, the United States. Along with coiled tubing solutions, the Company offers fracturing solutions; STEP-PLEX agents as blocking agents for fluid loss prevention, bridging, loss circulation prevention, conductivity improvement and fracture fluid diverting; chemical laboratory solutions, such as stimulation chemistry in fracturing, acidizing and production enhancement; fluid pumping services for both coiled tubing operations and standalone projects, as well as nitrogen (N2) pumping solutions and services.
Contact
IPO
Employees
Officers
The intrinsic value of one
STEP
stock under the Base Case scenario is
12.77
CAD.
Compared to the current market price of 3.97 CAD,
Step Energy Services Ltd
is
Undervalued by 69%.
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