Stepstone Group Stock Buy Hold or Sell Recommendation

STEP Stock  USD 53.67  2.46  4.80%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Stepstone Group is 'Strong Hold'. A buy or sell recommendation provided by Macroaxis is an automated analysis based on historical performance and your stated risk tolerance. It serves as guidance on whether to purchase or sell Stepstone Group within the specified time frame.
  
Check out Stepstone Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Stepstone and provide practical buy, sell, or hold advice based on investors' constraints. Stepstone Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

Execute Stepstone Buy or Sell Advice

The Stepstone recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Stepstone Group. Macroaxis does not own or have any residual interests in Stepstone Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Stepstone's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell StepstoneBuy Stepstone
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Stepstone Group has a Risk Adjusted Performance of (0.03), Jensen Alpha of 0.046, Total Risk Alpha of 0.2195 and Treynor Ratio of (0.08)
Our recommendation module provides unbiased trade recommendation that can be used to complement current average analyst sentiment on Stepstone Group. Our recommendation engine provides an advice for the company potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Stepstone Group is not overpriced, please validate all Stepstone fundamentals, including its total debt, beta, and the relationship between the gross profit and short ratio . Given that Stepstone Group has a price to earning of 5.11 X, we advise you to double-check Stepstone Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Stepstone Trading Alerts and Improvement Suggestions

Stepstone Group generated a negative expected return over the last 90 days
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 92.0% of Stepstone shares are owned by institutional investors
On 14th of March 2025 Stepstone paid $ 0.24 per share dividend to its current shareholders
Latest headline from simplywall.st: StepStone Group Inc. May Have Run Too Fast Too Soon With Recent 26 percent Price Plummet

Stepstone Returns Distribution Density

The distribution of Stepstone's historical returns is an attempt to chart the uncertainty of Stepstone's future price movements. The chart of the probability distribution of Stepstone daily returns describes the distribution of returns around its average expected value. We use Stepstone Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Stepstone returns is essential to provide solid investment advice for Stepstone.
Mean Return
-0.13
Value At Risk
-4.68
Potential Upside
3.21
Standard Deviation
2.85
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Stepstone historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Stepstone Stock Institutional Investors

The Stepstone's institutional investors refer to entities that pool money to purchase Stepstone's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
Shares
Fred Alger Management, Llc2024-12-31
1.6 M
Geode Capital Management, Llc2024-12-31
1.5 M
Atlantic Trust Group, Llc2024-09-30
1.1 M
Wasatch Advisors Lp2024-12-31
1.1 M
Bank Of New York Mellon Corp2024-12-31
907.4 K
Franklin Resources Inc2024-12-31
871.7 K
Millennium Management Llc2024-12-31
801.3 K
Capital Research Global Investors2024-12-31
728.5 K
Grantham, Mayo, Van Otterloo & Co., Llc2024-12-31
702.8 K
Blackrock Inc2024-12-31
10.1 M
Vanguard Group Inc2024-12-31
6.9 M
Note, although Stepstone's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Stepstone Cash Flow Accounts

202020212022202320242025 (projected)
Investments(14.0M)(36.2M)(25.2M)(47.3M)(42.6M)(40.5M)
Change In Cash93.9M(66.4M)12.1M52.8M47.5M49.9M
Free Cash Flow148.0M212.2M145.6M141.9M163.2M118.0M
Depreciation5.5M27.0M47.4M47.6M54.7M57.5M
Other Non Cash Items(225.5M)(308.6M)169.5M(46.9M)(42.3M)(44.4M)
Dividends Paid2.0M23.9M50.0M(68.5M)(61.6M)(58.5M)
Capital Expenditures1.3M2.1M5.6M19.6M22.5M23.7M
Net Income314.6M484.3M(45.3M)58.1M66.8M63.5M
End Period Cash Flow183.9M117.4M129.5M182.3M209.7M119.7M
Change To Netincome(150.2M)(119.7M)1.8M21.6M24.9M26.1M

Stepstone Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Stepstone or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Stepstone's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Stepstone stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.05
β
Beta against Dow Jones1.68
σ
Overall volatility
2.91
Ir
Information ratio -0.0099

Stepstone Volatility Alert

Stepstone Group exhibits very low volatility with skewness of -0.63 and kurtosis of 0.82. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stepstone's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stepstone's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Stepstone Fundamentals Vs Peers

Comparing Stepstone's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Stepstone's direct or indirect competition across all of the common fundamentals between Stepstone and the related equities. This way, we can detect undervalued stocks with similar characteristics as Stepstone or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Stepstone's fundamental indicators could also be used in its relative valuation, which is a method of valuing Stepstone by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Stepstone to competition
FundamentalsStepstonePeer Average
Return On Equity-0.0607-0.31
Return On Asset-0.0233-0.14
Profit Margin(0.11) %(1.27) %
Operating Margin(1.05) %(5.51) %
Current Valuation3.89 B16.62 B
Shares Outstanding75.85 M571.82 M
Shares Owned By Insiders18.27 %10.09 %
Shares Owned By Institutions92.10 %39.21 %
Number Of Shares Shorted2.19 M4.71 M
Price To Earning5.11 X28.72 X
Price To Book18.51 X9.51 X
Price To Sales5.55 X11.42 X
Revenue711.63 M9.43 B
Gross Profit13.89 M27.38 B
EBITDA249.86 M3.9 B
Net Income58.09 M570.98 M
Cash And Equivalents106.35 M2.7 B
Cash Per Share1.73 X5.01 X
Total Debt268.56 M5.32 B
Debt To Equity0.08 %48.70 %
Current Ratio0.87 X2.16 X
Book Value Per Share2.77 X1.93 K
Cash Flow From Operations161.52 M971.22 M
Short Ratio4.94 X4.00 X
Earnings Per Share(1.84) X3.12 X
Price To Earnings To Growth2.35 X4.89 X
Target Price68.57
Number Of Employees1.09 K18.84 K
Beta1.32-0.15
Market Capitalization6.4 B19.03 B
Total Asset3.79 B29.47 B
Retained Earnings13.77 M9.33 B
Working Capital(32.15 M)1.48 B
Note: Disposition of 17946 shares by Lim James of Stepstone at 31.15 subject to Rule 16b-3 [view details]

Stepstone Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Stepstone . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Stepstone Buy or Sell Advice

When is the right time to buy or sell Stepstone Group? Buying financial instruments such as Stepstone Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Stepstone in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Business Services
Business Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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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.