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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 48 (OpenAI - Gpt-5.6Sol)
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)

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
Financial results weakened sharply in 2026: revenue fell (~15%), profitability swung to losses, and operating margins turned meaningfully negative. While the balance sheet remains a strength with very low leverage, the combination of earnings deterioration and negative operating/free cash flow increases near-term execution and liquidity risk.
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
38
Negative
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue63.68M86.88M84.55M65.18M72.19M
Gross Profit32.12M66.38M68.33M48.16M59.17M
EBITDA-7.35M18.66M18.84M11.13M-267.00K
Net Income-6.35M12.65M12.40M8.62M-3.00M
Balance Sheet
Total Assets48.62M62.13M63.47M66.12M63.24M
Cash, Cash Equivalents and Short-Term Investments25.82M33.14M38.95M38.31M34.21M
Total Debt794.00K0.00293.00K0.000.00
Total Liabilities8.20M10.13M11.25M9.05M14.60M
Stockholders Equity40.42M52.00M52.22M57.07M48.64M
Cash Flow
Free Cash Flow-2.71M7.98M18.49M4.57M-8.80M
Operating Cash Flow-2.71M8.00M18.66M4.65M-8.78M
Investing Cash Flow4.85M-5.02M-10.17M-77.00K-19.00K
Financing Cash Flow-4.57M-14.12M-17.73M-571.00K32.28M

Step One Clothing Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.17
Negative
200DMA
0.25
Negative
Market Momentum
MACD
<0.01
Positive
RSI
42.08
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$639.85M34.7512.41%5.90%12.87%-21.74%
64
Neutral
AU$1.84B14.2631.92%3.52%-30.67%-24.10%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
AU$435.71M11.28-2.94%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
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STP
Step One Clothing Limited
0.15
-0.42
-74.56%
AU:AX1
Accent Group Ltd
0.73
-0.71
-49.34%
AU:UNI
Universal Store Holdings Ltd.
8.34
0.18
2.21%
AU:CTT
Cettire Ltd.
0.21
-0.08
-27.59%
AU:PMV
Premier Investments Limited
11.55
-9.03
-43.87%
AU:CCX
City Chic Collective Limited
0.04
-0.04
-46.25%

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&#8217;s revenue falling 35.7% and indirect revenue via third&#8209;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.Date of analysis: Aug 21, 2026