Step One Clothing Limited (STP) AI Stock Analysis

• Market Cap: AU$119.54M
• Dividend Yield: 13.64%
• Average Volume (3M): 345.50K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.09
• Revenue Growth: 17.85%
• EPS Growth: 29.61%
• Country: AU
• Employees: 51
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Retail
• EPS (TTM): 0.04
• Shares Outstanding: 185,340,290
• 10 Day Avg. Volume: 396,050
• 30 Day Avg. Volume: 345,501
• PEG Ratio: 1.48
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.30
• Price Target Upside: 103.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ―

Step One Clothing Limited's stock receives a solid overall score of 79, driven by strong financial performance, including robust revenue and profit growth, and excellent cash flow management. While the technical analysis shows mixed signals with resistance at higher moving averages, the valuation remains appealing with a reasonable P/E ratio and high dividend yield. The absence of earnings call and corporate events data limits further insights, focusing the analysis on fundamental financial health and market positioning.

Step One Clothing Limited Business Overview & Revenue Model

Company Description

Step One Clothing Limited operates as a direct-to-consumer online retailer for men's underwear in the United Kingdom, the United States, and Australia. It offers men's underwear products, such as boxer briefs, trunks, and a boxer brief with a fly through its website, www.stepone.life. The company was incorporated in 2017 and is based in Surry Hills, Australia.

How the Company Makes Money

Step One Clothing Limited generates revenue primarily through the sale of its apparel products directly to consumers via its online platform. The company leverages a direct-to-consumer model to keep prices competitive while maintaining quality. Their key revenue streams include online sales of their core products, such as men's and women's underwear. Additionally, Step One Clothing may engage in partnerships with eco-conscious brands and retail platforms to expand its market reach. The company's focus on sustainability and ethical production also attracts a dedicated customer base that values these principles, contributing to its overall earnings.

Step One Clothing Limited Financial Statement Overview

Summary

Step One Clothing Limited demonstrates strong financial performance, highlighted by significant revenue growth of 29.71% and improved profitability, with a net profit margin of 14.66%. The company maintains low leverage with a debt-to-equity ratio of 0.006 and excellent cash flow management, evidenced by a 304.60% increase in free cash flow. However, a decrease in stockholders' equity needs monitoring.

Income Statement

Step One Clothing Limited has demonstrated strong revenue growth with a solid gross profit margin of 75.03% for 2024. The net profit margin improved significantly to 14.66%, indicating enhanced profitability. The EBIT and EBITDA margins are robust at 22.21% and 22.26%, respectively, reflecting effective cost management. Revenue growth from 2023 to 2024 was a remarkable 29.71%, showcasing the company's successful expansion and market capture.

Balance Sheet

The company's balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.006, indicating very low financial leverage. The equity ratio stands at 82.27%, suggesting a stable financial structure. However, a decline in stockholders' equity from 2023 may require attention to ensure sustained equity strength. The ROE improved to 23.74% in 2024, indicating efficient utilization of equity to generate profits.

Cash Flow

Step One Clothing Limited has shown an impressive free cash flow growth of 304.60% from 2023 to 2024, reflecting robust cash generation capabilities. The operating cash flow to net income ratio is 1.50, indicating strong cash conversion. Additionally, the free cash flow to net income ratio is 1.49, demonstrating high efficiency in converting earnings into cash.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	87.61M	84.55M	65.18M	72.19M	61.72M	22.25M
Gross Profit	66.52M	68.33M	48.16M	59.17M	41.99M	18.15M
EBITDA	18.55M	19.00M	12.47M	-267.00K	3.17M	5.19M
Net Income	13.47M	12.40M	8.62M	-3.00M	-118.00K	3.74M
Balance Sheet
Total Assets	67.93M	63.47M	66.12M	63.24M	56.14M	10.28M
Cash, Cash Equivalents and Short-Term Investments	43.94M	38.95M	38.31M	34.21M	41.68M	6.74M
Total Debt	409.00K	293.00K	0.00	0.00	0.00	0.00
Total Liabilities	12.72M	11.25M	9.05M	14.60M	12.90M	5.97M
Stockholders Equity	55.21M	52.22M	57.07M	48.64M	43.24M	4.30M
Cash Flow
Free Cash Flow	13.69M	18.49M	4.57M	-8.80M	6.55M	5.78M
Operating Cash Flow	13.66M	18.66M	4.65M	-8.78M	6.60M	5.79M
Investing Cash Flow	-17.48M	-10.17M	-77.00K	-19.00K	-46.00K	-13.20K
Financing Cash Flow	-13.76M	-17.73M	-571.00K	32.28M	-2.55M	-1.71M

Step One Clothing Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STP, the sentiment is Negative. The current price of 0.64 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.78, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 15.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:STP.

Step One Clothing Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STP	79 Outperform	AU$119.54M	8.82	24.29%	13.64%	17.85%	29.61%
PMV	71 Outperform	AU$3.22B	16.25	14.01%	6.97%	-27.48%	-27.96%
NCK	66 Neutral	AU$1.54B	22.33	29.48%	3.29%	9.36%	-21.69%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
2RC		€520.70M	7.98	13.05%	4.67%	―	―
30M		€591.33M	18.82	8.55%	16.53%	―	―
KMD		AU$177.98M	―	-7.70%	―	―	―

Step One Clothing Limited Corporate Events

Step One Clothing Announces Share Registry Address Change

Step One Clothing Limited has announced a change in the address of its share registry, effective from April 14, 2025. This move is part of the company’s ongoing operational adjustments, reflecting its commitment to maintaining efficient business processes. The change is not expected to impact the company’s primary operations, and all other contact details remain the same.

Step One Clothing Announces Dividend Distribution

Step One Clothing Limited has announced a new dividend distribution for its ordinary fully paid securities, amounting to AUD 0.044 per share. This distribution, related to the six-month period ending December 31, 2024, will have an ex-date of February 24, 2025, with payments scheduled for March 14, 2025, potentially signaling positive financial performance and shareholder returns.

Step One Clothing Limited Reports Strong First Half 2025 Results

Step One Clothing Limited has reported its interim financial results for the first half of 2025, showcasing a resilient performance with a focus on profitable growth. The company’s revenue increased by 6.8% compared to the previous corresponding period, reaching $48.1 million, while EBITDA rose by 10.4%. Despite a slight decline in gross margin, cash reserves grew by 12.4%, and an interim dividend of 4.4 cents per share was declared, reflecting a 100% payout. These results highlight Step One’s strategic emphasis on expanding its revenue streams and maintaining financial stability in a competitive market.

Step One Clothing Reports Strong 1H25 Financial Results Amid Challenging Conditions

Step One Clothing Limited reported a resilient financial performance for the first half of 2025, with a revenue increase of 6.8% to $48.1 million and EBITDA growth of 10.4% to $11.2 million. Despite global cost-of-living pressures and a challenging retail environment, the company maintained strong customer retention rates and increased order values. Step One’s ability to adapt pricing and promotional strategies effectively contributed to robust sales periods, particularly in Australia, where revenue grew by 17.4% due to the expanded women’s range. The company also focused on future growth through strategic expansion and maintaining profitability while navigating difficult market conditions.

Step One Clothing Limited Shows Strong Revenue Growth Despite Lower Dividends

Step One Clothing Limited reported a 6.8% increase in revenue, reaching $48,118,000 for the half-year ended December 31, 2024. The company’s profit after tax rose by 15.1% to $8,181,000. Although the gross margin percentage decreased to 77.9%, EBITDA saw a 10.4% growth, reaching $11,179,000. The company maintains a strong financial position with no debt and cash reserves of $43,770,000, indicating capacity for expansion. A dividend of 2.8 cents per share was paid, lower than the previous year’s 5.0 cents.