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Step One Clothing Limited
(Sydney:STP)
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Rating:48Neutral
Price Target:
AU$0.15
▲(9.29% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weak 2026 fundamentals—profitability reversing to losses and cash flow turning negative—despite a low-debt balance sheet. Technicals are neutral with only mild positive momentum, while valuation is constrained by a negative P/E and an unusually high dividend yield that may be harder to sustain given recent cash consumption.
Positive Factors
Low Leverage
Very low leverage limits interest and refinancing pressure, giving Step One greater flexibility to manage apparel demand cycles, invest in the brand, and absorb operating volatility without substantial debt obligations.
Negative Factors
Revenue Contraction
A material revenue decline signals weaker demand, reduced product traction or execution challenges. If sustained, lower sales can reduce operating leverage and make it harder to support marketing, inventory and brand investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Very low leverage limits interest and refinancing pressure, giving Step One greater flexibility to manage apparel demand cycles, invest in the brand, and absorb operating volatility without substantial debt obligations.
Read all positive factors
Step One Clothing Limited (STP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$26.87M
Dividend Yield46.9%
Average Volume (3M)155.68K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-26.70%
EPS Growth-150.73%
CountryAU
Employees33
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.03
Shares Outstanding185,340,290
10 Day Avg. Volume172,340
30 Day Avg. Volume155,679
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.64
Price to Sales (P/S)0.41
P/FCF Ratio-9.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.17Price Target Upside17.86% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)<0.01
Revenue Forecast (FY)AU$67.05M
Step One Clothing Limited Business Overview & Revenue Model
Company Description
Step One Clothing Limited functions as an online-first business specializing in men's intimate apparel, which it sells directly to customers in the United Kingdom, the United States, and Australia. Its product line encompasses various undergarment...
How the Company Makes Money
Step One Clothing Limited makes money primarily through the sale of its apparel products to consumers, with revenue generated when customers purchase items via the company’s e-commerce channels. Its core revenue stream is direct-to-consumer produc...
Step One Clothing Limited Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 63.68M | 86.88M | 84.55M | 65.18M | 72.19M |
| Gross Profit | 32.12M | 66.38M | 68.33M | 48.16M | 59.17M |
| EBITDA | -7.35M | 18.66M | 18.84M | 11.13M | -267.00K |
| Net Income | -6.35M | 12.65M | 12.40M | 8.62M | -3.00M |
Balance Sheet | |||||
| Total Assets | 48.62M | 62.13M | 63.47M | 66.12M | 63.24M |
| Cash, Cash Equivalents and Short-Term Investments | 25.82M | 33.14M | 38.95M | 38.31M | 34.21M |
| Total Debt | 794.00K | 0.00 | 293.00K | 0.00 | 0.00 |
| Total Liabilities | 8.20M | 10.13M | 11.25M | 9.05M | 14.60M |
| Stockholders Equity | 40.42M | 52.00M | 52.22M | 57.07M | 48.64M |
Cash Flow | |||||
| Free Cash Flow | -2.71M | 7.98M | 18.49M | 4.57M | -8.80M |
| Operating Cash Flow | -2.71M | 8.00M | 18.66M | 4.65M | -8.78M |
| Investing Cash Flow | 4.85M | -5.02M | -10.17M | -77.00K | -19.00K |
| Financing Cash Flow | -4.57M | -14.12M | -17.73M | -571.00K | 32.28M |
Step One Clothing Limited Technical Analysis
Negative
0.14
Price Trends
0.15
Negative
0.17
Negative
0.25
Negative
Market Momentum
<0.01
Positive
42.08
Neutral
18.18
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 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.15, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.08 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$639.85M | 34.75 | 12.41% | 5.90% | 12.87% | -21.74% | |
64 Neutral | AU$1.84B | 14.26 | 31.92% | 3.52% | -30.67% | -24.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | AU$435.71M | 11.28 | -2.94% | 6.45% | 4.39% | -122.63% | |
50 Neutral | AU$16.56M | -2.91 | -16.89% | ― | 41.14% | 93.28% | |
48 Neutral | AU$26.87M | -4.25 | -8.79% | 48.57% | -26.70% | -150.73% | |
39 Underperform | AU$80.06M | -9.42 | -24.62% | ― | -6.53% | -448.44% |
* Consumer Cyclical Sector Average
AU:STP
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Step One Clothing Limited Corporate Events
Step One Clothing Posts Lower FY26 Revenue as Reset Program Progresses
Aug 18, 2026
Step One Clothing reported FY26 revenue of $63.7 million, down 26.7% year on year, with women’s revenue falling 35.7% and indirect revenue via third‑party platforms rising 62.3%. Advertising expenses increased to 33.1% of revenue, whil...
Step One Clothing Swings to FY26 Loss as Strategic Reset Hits Revenue but Strengthens Platform
Aug 18, 2026
Step One Clothing reported FY26 revenue of $63.7 million, down 26.7% as subdued consumer demand and a strategic pullback from deep discounting weighed on sales. The company swung to a reported EBITDA loss of $7.4 million and a net loss after tax o...
Step One Clothing Sets Date for FY26 Results and Investor Briefing
Jul 22, 2026
Step One Clothing Limited will release its financial results for the year ended 30 June 2026 on 19 August 2026, providing the market with an update on its performance as a growing multinational innerwear brand. The announcement is expected to offe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.