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Step One Clothing Limited (AU:STP)
ASX:STP
Australian Market
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Step One Clothing Limited (STP) AI Stock Analysis

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AU:STP

Step One Clothing Limited

(Sydney:STP)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
AU$0.17
▲(18.57% Upside)
Action:Reiterated
Date:06/24/26
The score is primarily supported by strong recent profitability and a very conservative balance sheet with minimal debt. It is held back by weak technicals (price below key moving averages and negative MACD) and elevated uncertainty from the sharp 2025 revenue decline and cash-flow volatility, with valuation further complicated by a negative P/E and an unusually high dividend yield that may be less reliable.
Positive Factors
Conservative balance sheet / Low leverage
The company’s effectively zero debt position materially reduces refinancing and interest-rate risk, giving management durable financial flexibility. This conservative financing base supports capital returns, weathering demand swings and funding strategic investments without reliance on external credit.
Negative Factors
Volatile and declining revenue
A sharp revenue contraction and historically volatile top-line growth undermine the durability of current profits and margins. If sales decline persistently, fixed-cost absorption and marketing spend could erode earnings power, making current margin levels harder to sustain over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / Low leverage
The company’s effectively zero debt position materially reduces refinancing and interest-rate risk, giving management durable financial flexibility. This conservative financing base supports capital returns, weathering demand swings and funding strategic investments without reliance on external credit.
Read all positive factors

Step One Clothing Limited (STP) vs. iShares MSCI Australia ETF (EWA)

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
Strong profitability with consistently high gross margins and solid net margins in recent years, supported by an exceptionally low-leverage balance sheet. Offsetting this are the sharp revenue decline in 2025 and uneven cash-flow consistency (including a material FCF drop in 2025), which raise durability risk for earnings.
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
63
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue75.09M86.88M84.55M65.18M72.19M61.72M
Gross Profit37.18M66.38M68.33M48.16M59.17M41.99M
EBITDA-3.44M18.66M18.84M11.13M-267.00K3.17M
Net Income-4.00M12.65M12.40M8.62M-3.00M-118.00K
Balance Sheet
Total Assets47.38M62.13M63.47M66.12M63.24M56.14M
Cash, Cash Equivalents and Short-Term Investments24.01M33.14M38.95M38.31M34.21M41.68M
Total Debt1.58M0.00293.00K0.000.000.00
Total Liabilities8.44M10.13M11.25M9.05M14.60M12.90M
Stockholders Equity38.94M52.00M52.22M57.07M48.64M43.24M
Cash Flow
Free Cash Flow-6.56M7.98M18.49M4.57M-8.80M6.55M
Operating Cash Flow-6.55M8.00M18.66M4.65M-8.78M6.60M
Investing Cash Flow10.35M-5.02M-10.17M-77.00K-19.00K-46.00K
Financing Cash Flow-13.26M-14.12M-17.73M-571.00K32.28M-2.55M

Step One Clothing Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.15
Positive
100DMA
0.17
Positive
200DMA
0.26
Negative
Market Momentum
MACD
<0.01
Negative
RSI
72.61
Negative
STOCH
87.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STP, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:STP.

Step One Clothing Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
AU$405.67M10.507.94%6.45%2.05%-43.61%
64
Neutral
AU$37.07M-9.43-8.79%48.57%-14.29%-129.96%
64
Neutral
AU$2.00B15.4631.92%3.52%-30.67%-24.10%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
AU$564.67M16.4322.34%5.90%14.44%61.48%
48
Neutral
AU$16.95M-2.97-16.89%41.14%93.28%
47
Neutral
AU$101.03M-11.88-24.62%-6.53%-448.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STP
Step One Clothing Limited
0.20
-0.45
-69.37%
AU:AX1
Accent Group Ltd
0.68
-0.81
-54.51%
AU:UNI
Universal Store Holdings Ltd.
7.36
-1.08
-12.75%
AU:CTT
Cettire Ltd.
0.27
-0.03
-11.67%
AU:PMV
Premier Investments Limited
12.52
-8.17
-39.49%
AU:CCX
City Chic Collective Limited
0.04
-0.04
-45.00%

Step One Clothing Limited Corporate Events

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.Date of analysis: Jun 24, 2026