Step One Clothing Limited (AU:STP)
ASX:STP
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Step One Clothing Limited
(Sydney:STP)
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Rating:66Neutral
Price Target:
AU$0.22
▼(-38.29% Downside)
Action:DowngradedDate:02/19/26
The score is primarily supported by strong financial quality (high margins and a near debt-free balance sheet). It is held back by bearish technical conditions (price below major moving averages and negative MACD) and valuation uncertainty from a negative P/E despite an unusually high dividend yield.
Positive Factors
High gross and net margins
Sustained gross margins near 74%–82% and mid‑teens net margins create a durable profitability buffer. That margin headroom supports investment in product, marketing and DTC channels, helps absorb cost inflation or promotional cycles, and underpins free cash generation even with sales volatility.
Negative Factors
Volatile, falling revenues
A material revenue decline and historically volatile top line threaten the durability of margins and earnings. If sales contraction persists, fixed cost absorption and unit economics will come under pressure, limiting reinvestment, eroding returns and potentially forcing margin concessions to defend volume.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and net margins
Sustained gross margins near 74%–82% and mid‑teens net margins create a durable profitability buffer. That margin headroom supports investment in product, marketing and DTC channels, helps absorb cost inflation or promotional cycles, and underpins free cash generation even with sales volatility.
Read all positive factors
Step One Clothing Limited (STP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$37.99M
Dividend Yield20.3%
Average Volume (3M)155.68K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth2.76%
EPS Growth1.93%
CountryAU
Employees51
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.05
Shares Outstanding185,340,290
10 Day Avg. Volume172,340
30 Day Avg. Volume155,679
Financial Highlights & Ratios
PEG Ratio13.71
Price to Book (P/B)2.46
Price to Sales (P/S)1.47
P/FCF Ratio16.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.29Price Target Upside-17.14% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)<0.01
Revenue Forecast (FY)AU$66.05M
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 ...
How the Company Makes Money
Step One Clothing Limited makes money primarily by selling branded apparel directly to consumers. Revenue is generated when customers purchase products (e.g., underwear and other clothing items) through the company’s e-commerce website and any oth...
Step One Clothing Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.09M | 86.88M | 84.55M | 65.18M | 72.19M | 61.72M |
| Gross Profit | 37.18M | 66.38M | 68.33M | 48.16M | 59.17M | 41.99M |
| EBITDA | -3.44M | 18.66M | 18.84M | 11.13M | -267.00K | 3.17M |
| Net Income | -4.00M | 12.65M | 12.40M | 8.62M | -3.00M | -118.00K |
Balance Sheet | ||||||
| Total Assets | 47.38M | 62.13M | 63.47M | 66.12M | 63.24M | 56.14M |
| Cash, Cash Equivalents and Short-Term Investments | 24.01M | 33.14M | 38.95M | 38.31M | 34.21M | 41.68M |
| Total Debt | 1.58M | 0.00 | 293.00K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 8.44M | 10.13M | 11.25M | 9.05M | 14.60M | 12.90M |
| Stockholders Equity | 38.94M | 52.00M | 52.22M | 57.07M | 48.64M | 43.24M |
Cash Flow | ||||||
| Free Cash Flow | -6.56M | 7.98M | 18.49M | 4.57M | -8.80M | 6.55M |
| Operating Cash Flow | -6.55M | 8.00M | 18.66M | 4.65M | -8.78M | 6.60M |
| Investing Cash Flow | 10.35M | -5.02M | -10.17M | -77.00K | -19.00K | -46.00K |
| Financing Cash Flow | -13.26M | -14.12M | -17.73M | -571.00K | 32.28M | -2.55M |
Step One Clothing Limited Technical Analysis
Negative
0.35
Price Trends
0.24
Negative
0.30
Negative
0.44
Negative
Market Momentum
-0.01
Negative
32.94
Neutral
15.46
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 0.35 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.24, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 32.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.46 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$37.99M | -1.83 | -8.79% | 20.30% | 2.76% | 1.93% | |
65 Neutral | AU$411.68M | 5.06 | 7.94% | 7.33% | 1.58% | -4.71% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | AU$563.90M | 5.43 | 22.34% | 4.70% | 15.51% | -32.98% | |
47 Neutral | AU$91.50M | -78.53 | -24.62% | ― | -0.02% | -125.09% | |
46 Neutral | AU$26.19M | -3.00 | -16.89% | ― | 2.35% | 95.03% |
* Consumer Cyclical Sector Average
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Step One Clothing Limited Corporate Events
Step One Clothing Issues 3.2m Unquoted Performance Rights Under Staff Incentive Plan
Mar 31, 2026
Step One Clothing Limited has notified the market of several new issues of unquoted performance rights under its employee incentive scheme, totalling 3.2 million securities across three separate issue dates in early 2026. The additional performanc...
Step One Clothing Sets Date for 1H26 Results and Investor Briefing
Feb 5, 2026
Step One Clothing Limited will release its financial results for the first half of fiscal 2026, covering the six months to 31 December 2025, on 18 February 2026, and will host a teleconference and webcast the same morning for investors and analyst...
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.