Is Stepstone Stock a Good Investment?
Stepstone Investment Advice | STEP |
- Examine Stepstone's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Stepstone's leadership team and their track record. Good management can help Stepstone navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Stepstone's business and its evolving consumer preferences.
- Compare Stepstone's performance and market position to its competitors. Analyze how Stepstone is positioned in terms of product offerings, innovation, and market share.
- Check if Stepstone pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Stepstone's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Stepstone Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Stepstone Group is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Stepstone Stock
Researching Stepstone's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 18.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.35. Stepstone Group last dividend was issued on the 29th of November 2024.
To determine if Stepstone is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Stepstone's research are outlined below:
| Stepstone Group currently holds 268.56 M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest the company is not taking enough advantage from borrowing. Stepstone Group has a current ratio of 0.85, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Stepstone's use of debt, we should always consider it together with its cash and equity. | |
| Over 94.0% of Stepstone shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Federato announces 80 million raised to bring RiskOps to insurance |
Stepstone uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Stepstone Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Stepstone's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Stepstone's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Stepstone's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-11-10 | 2020-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2023-05-24 | 2023-03-31 | 0.28 | 0.24 | -0.04 | 14 | ||
2024-05-23 | 2024-03-31 | 0.28 | 0.33 | 0.05 | 17 | ||
2022-08-05 | 2022-06-30 | 0.36 | 0.41 | 0.05 | 13 | ||
2022-11-03 | 2022-09-30 | 0.27 | 0.33 | 0.06 | 22 | ||
2022-02-08 | 2021-12-31 | 0.35 | 0.42 | 0.07 | 20 | ||
2021-06-15 | 2021-03-31 | 0.17 | 0.25 | 0.08 | 47 | ||
2021-11-09 | 2021-09-30 | 0.3 | 0.4 | 0.1 | 33 |
Know Stepstone's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Stepstone is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Stepstone Group backward and forwards among themselves. Stepstone's institutional investor refers to the entity that pools money to purchase Stepstone's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Millennium Management Llc | 2024-06-30 | 1.5 M | Geode Capital Management, Llc | 2024-09-30 | 1.5 M | Wasatch Advisors Lp | 2024-09-30 | 1.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.1 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 855.1 K | Franklin Resources Inc | 2024-09-30 | 805.2 K | Amvescap Plc. | 2024-06-30 | 788.8 K | Capital Research Global Investors | 2024-09-30 | 728.5 K | Loomis, Sayles & Company Lp | 2024-06-30 | 711.4 K | Blackrock Inc | 2024-06-30 | 8 M | Vanguard Group Inc | 2024-09-30 | 6.5 M |
Stepstone's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.94 B.Market Cap |
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Stepstone's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.07 | 0.07 | |
| Return On Assets | 0.02 | 0.01 | |
| Return On Equity | 0.18 | 0.17 |
Determining Stepstone's profitability involves analyzing its financial statements and using various financial metrics to determine if Stepstone is a good buy. For example, gross profit margin measures Stepstone's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Stepstone's profitability and make more informed investment decisions.
Stepstone's Earnings Breakdown by Geography
Evaluate Stepstone's management efficiency
Stepstone Group has return on total asset (ROA) of 0.0307 % which means that it generated a profit of $0.0307 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0867 %, meaning that it created $0.0867 on every $100 dollars invested by stockholders. Stepstone's management efficiency ratios could be used to measure how well Stepstone manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/24/2024, Return On Tangible Assets is likely to drop to 0.02. In addition to that, Return On Capital Employed is likely to drop to 0.07. As of 11/24/2024, Change To Liabilities is likely to grow to about 11.8 M, while Total Current Liabilities is likely to drop slightly above 1.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 29.50 | 15.55 | |
| Tangible Book Value Per Share | 15.56 | 9.74 | |
| Enterprise Value Over EBITDA | 9.20 | 8.74 | |
| Price Book Value Ratio | 6.82 | 6.47 | |
| Enterprise Value Multiple | 9.20 | 8.74 | |
| Price Fair Value | 6.82 | 6.47 | |
| Enterprise Value | 2.3 B | 1.3 B |
Stepstone Group benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0143 | Forward Dividend Yield 0.0143 | Forward Dividend Rate 0.96 | Beta 1.265 |
Basic technical analysis of Stepstone Stock
As of the 24th of November, Stepstone has the Coefficient Of Variation of 542.69, semi deviation of 1.6, and Risk Adjusted Performance of 0.1478. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Stepstone Group, as well as the relationship between them.Stepstone's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Stepstone insiders, such as employees or executives, is commonly permitted as long as it does not rely on Stepstone's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Stepstone insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Stepstone's Outstanding Corporate Bonds
Stepstone issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Stepstone Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Stepstone bonds can be classified according to their maturity, which is the date when Stepstone Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| STE 375 15 MAR 51 Corp BondUS85917PAB31 | View | |
| STE 27 15 MAR 31 Corp BondUS85917PAA57 | View |
Understand Stepstone's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Stepstone's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1478 | |||
| Market Risk Adjusted Performance | 0.228 | |||
| Mean Deviation | 1.51 | |||
| Semi Deviation | 1.6 | |||
| Downside Deviation | 1.85 | |||
| Coefficient Of Variation | 542.69 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.69 | |||
| Information Ratio | 0.1239 | |||
| Jensen Alpha | 0.1734 | |||
| Total Risk Alpha | 0.048 | |||
| Sortino Ratio | 0.1453 | |||
| Treynor Ratio | 0.218 | |||
| Maximum Drawdown | 16.32 | |||
| Value At Risk | (2.12) | |||
| Potential Upside | 2.82 | |||
| Downside Variance | 3.41 | |||
| Semi Variance | 2.56 | |||
| Expected Short fall | (1.73) | |||
| Skewness | 1.23 | |||
| Kurtosis | 7.18 |
| Risk Adjusted Performance | 0.1478 | |||
| Market Risk Adjusted Performance | 0.228 | |||
| Mean Deviation | 1.51 | |||
| Semi Deviation | 1.6 | |||
| Downside Deviation | 1.85 | |||
| Coefficient Of Variation | 542.69 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.69 | |||
| Information Ratio | 0.1239 | |||
| Jensen Alpha | 0.1734 | |||
| Total Risk Alpha | 0.048 | |||
| Sortino Ratio | 0.1453 | |||
| Treynor Ratio | 0.218 | |||
| Maximum Drawdown | 16.32 | |||
| Value At Risk | (2.12) | |||
| Potential Upside | 2.82 | |||
| Downside Variance | 3.41 | |||
| Semi Variance | 2.56 | |||
| Expected Short fall | (1.73) | |||
| Skewness | 1.23 | |||
| Kurtosis | 7.18 |
Consider Stepstone's intraday indicators
Stepstone intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Stepstone stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Stepstone Corporate Filings
F3 | 21st of November 2024 An amendment to the original Schedule 13D filing | ViewVerify |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 13th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Stepstone Stock media impact
Far too much social signal, news, headlines, and media speculation about Stepstone that are available to investors today. That information is available publicly through Stepstone media outlets and privately through word of mouth or via Stepstone internal channels. However, regardless of the origin, that massive amount of Stepstone data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Stepstone news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Stepstone relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Stepstone's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Stepstone alpha.
Stepstone Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Stepstone can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Stepstone Group Historical Investor Sentiment
Investor biases related to Stepstone's public news can be used to forecast risks associated with an investment in Stepstone. The trend in average sentiment can be used to explain how an investor holding Stepstone can time the market purely based on public headlines and social activities around Stepstone Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Stepstone's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Stepstone and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Stepstone news discussions. The higher the estimate score, the more favorable the investor's outlook on Stepstone.
Stepstone Corporate Management
| Bendukai JD | Chief Counsel | Profile | |
| David Jeffrey | Head Bus | Profile | |
| Johnny Randel | Chief Officer | Profile | |
| John Coelho | Partner | Profile | |
| Maribel Yoo | Vice Marketing | Profile |
Additional Tools for Stepstone Stock Analysis
When running Stepstone's price analysis, check to measure Stepstone's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Stepstone is operating at the current time. Most of Stepstone's value examination focuses on studying past and present price action to predict the probability of Stepstone's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Stepstone's price. Additionally, you may evaluate how the addition of Stepstone to your portfolios can decrease your overall portfolio volatility.