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Step One Clothing Limited (AU:STP)
:STP
Australian Market

Step One Clothing Limited (STP) AI Stock Analysis

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AU

Step One Clothing Limited

(Sydney:STP)

Rating:79Outperform
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 (STP) vs. iShares MSCI Australia ETF (EWA)

Step One Clothing Limited Business Overview & Revenue Model

Company DescriptionStep One Clothing Limited (STP) is a company specializing in direct-to-consumer apparel, with a primary focus on men's and women's underwear. The company aims to provide comfortable, sustainable, and ethically produced clothing options. Step One Clothing is known for its commitment to using eco-friendly materials and innovative designs to meet consumer demands for both comfort and sustainability.
How the Company Makes MoneyStep 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
85
Very Positive
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
78
Positive
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
90
Very Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
87.61M84.55M65.18M72.19M61.72M22.25M
Gross Profit
66.52M68.33M48.16M59.17M41.99M18.15M
EBIT
18.14M18.54M11.11M-45.00K3.03M5.14M
EBITDA
18.55M19.00M12.47M-267.00K3.17M5.19M
Net Income Common Stockholders
13.47M12.40M8.62M-3.00M-118.00K3.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
43.94M38.95M38.31M34.21M41.68M6.74M
Total Assets
67.93M63.47M66.12M63.24M56.14M10.28M
Total Debt
409.00K293.00K0.000.000.000.00
Net Debt
-17.53M-28.66M-18.31M-34.21M-41.68M-6.74M
Total Liabilities
12.72M11.25M9.05M14.60M12.90M5.97M
Stockholders Equity
55.21M52.22M57.07M48.64M43.24M4.30M
Cash FlowFree Cash Flow
13.69M18.49M4.57M-8.80M6.55M5.78M
Operating Cash Flow
13.66M18.66M4.65M-8.78M6.60M5.79M
Investing Cash Flow
-17.48M-10.17M-77.00K-19.00K-46.00K-13.20K
Financing Cash Flow
-13.76M-17.73M-571.00K32.28M-2.55M-1.71M

Step One Clothing Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.68
Price Trends
50DMA
0.82
Negative
100DMA
0.95
Negative
200DMA
1.21
Negative
Market Momentum
MACD
-0.04
Positive
RSI
32.45
Neutral
STOCH
36.91
Neutral
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 0.68 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.82, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 36.91 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSTP
79
Outperform
AU$125.10M9.2324.29%10.67%17.85%29.61%
AUNCK
74
Outperform
AU$1.64B23.7429.48%3.29%9.36%-21.69%
AUPMV
71
Outperform
AU$3.24B16.3514.01%6.57%-27.48%-27.96%
AUCCP
68
Neutral
€916.18M8.5613.05%4.44%6.70%126.16%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
AUMYR
61
Neutral
AU$1.18B24.558.55%5.81%-2.43%-49.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STP
Step One Clothing Limited
0.68
-0.67
-49.63%
AU:NCK
Nick Scali Limited
19.17
5.53
40.54%
AU:CCP
Credit Corp Group Limited
13.46
-0.32
-2.32%
AU:MYR
Myer Holdings Limited
0.69
0.07
10.66%
AU:PMV
Premier Investments Limited
20.25
-0.91
-4.30%

Step One Clothing Limited Corporate Events

Step One Clothing Announces Share Registry Address Change
Apr 11, 2025

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
Feb 18, 2025

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
Feb 18, 2025

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
Feb 18, 2025

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
Feb 18, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.