Education
About Us
Working with TipRanks
Follow Us
StepStone Group (STEP)
NASDAQ:STEP
Top Page
StepStone Group
(NASDAQ:STEP)
Rating:63Neutral
Price Target:―
Positive Factors
Earnings
The earnings per share (EPS) for the first quarter of 2025 has been raised.
Price Target
The price target has been increased by 2%.
Negative Factors
Analyst Recommendation
The analyst's recommendation remains Equal-weight with a modest upside.
StepStone Group (STEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.69B
Dividend Yield1.6%
Average Volume (3M)632.95K
Price to Earnings (P/E)103.1
Beta (1Y)1.30
Revenue Growth118.79%
EPS Growth-285.61%
CountryUS
Employees1,090
SectorFinancial
Sector Strength79
IndustryAsset Management
Share Statistics
EPS (TTM)0.68
Shares Outstanding76,761,400
10 Day Avg. Volume865,543
30 Day Avg. Volume632,946
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)2.35K
Price to Sales (P/S)0.00
P/FCF Ratio13.74
Enterprise Value/Market Cap0.56
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit9.81
Enterprise Value/Ebitda16.36
Forecast
1Y Price Target
$63.60Price Target Upside10.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
StepStone Group Business Overview & Revenue Model
Company DescriptionStepStone Group Inc. is an investment firm specializing in direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, and buyout investments in mature and middle market companies. It prefers to invest in natural resources, technology, healthcare, services, materials, manufacturing, consumer durables, apparel, hotels, restaurants and leisure, media, retailing, consumer staples, financials, telecommunication services, energy, infrastructure, real estate, and real asset. The firm invests globally with a focus on United States, North America, Europe, Asia, Latin America, Middle East, Africa, Brazil, Mexico, Argentina, Colombia, New Zealand, China, India, Korea, Japan, Taiwan, and Australia region. It typically invests between $15 million and $200 million in firms with enterprise value between $150 million and $25000 million. The firm invests between 5% and 40% in emerging markets. For fund of fund investment, it seeks to invest in private equity funds, venture capital funds, Special situation funds, Real estate funds, Infrastructure funds, mezzanine funds, and turnaround/distressed funds. It considers investments in both domestic and international funds. It also seeks to make co-investments and follow-on investments and considers partial interests in funds. StepStone Group Inc. was founded in 2007 and is based in New York, New York with additional offices across North America, South America, Europe, Australia, and Asia.
How the Company Makes MoneyStepStone Group makes money primarily through management and advisory fees charged on the assets it manages or advises on behalf of its clients. These fees are typically a percentage of the assets under management (AUM) and can include performance-based fees when investment returns exceed predefined benchmarks. The company also earns revenue from consulting services and customized investment solutions provided to its clients. Key partnerships with institutional investors and financial institutions help expand its client base and increase AUM, further driving revenue growth.
StepStone Group Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: 1.29%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
StepStone Group Inc. reported strong financial performance with record fee-related earnings and significant growth in asset management, particularly in private wealth. However, the company faced challenges, including a GAAP net loss and market volatility. Despite these challenges, the strength of the positive results, especially in fee-related earnings and asset growth, outweigh the negatives.Q4-2025 Updates
Positive Updates
Record Fee-Related Earnings and Growth
StepStone Group Inc. reported fee-related earnings of $94.1 million, up 85% from the prior year quarter, and achieved an FRE margin of 44%. Adjusted net income for the quarter was $80.6 million, up from $37.7 million in the previous year.
Strong Asset Management and Fundraising
The company raised over $31 billion of assets under management for the full year, translating to a fee-earning asset growth of over 29%. Total gross inflows for the quarter were $9.9 billion, the second-highest quarter on record.
Significant Expansion in Private Wealth
The private wealth platform grew from $3.4 billion to over $8 billion in assets by the end of the fiscal year, driven by new products, distribution expansion, and momentum in existing products.
Successful Launch of Infrastructure Fund
Closed on a debut infrastructure co-investment fund of over $1 billion, marking a milestone for the company's expansion into new asset classes.
Increased Dividend Payout
Declared a base quarterly dividend of $0.24 and a supplemental dividend of $0.40, bringing the full dividend payout for the fiscal year to $1.36, up from $0.99 the previous year.
Negative Updates
GAAP Net Loss
Reported a GAAP net loss attributable to StepStone Group Inc. of $18.5 million or $0.24 per share for the quarter.
Market Volatility Challenges
Faced market volatility due to global trade policy changes, creating uncertainties in the public and private markets.
Dependency on Retroactive Fees
The fee-related earnings were significantly bolstered by retroactive fees, which may not recur consistently in future quarters.
Company Guidance
During the fiscal fourth quarter of 2025, StepStone Group Inc. reported a GAAP net loss of $18.5 million, equivalent to $0.24 per share, but achieved significant growth in other areas, such as fee-related earnings, which rose by 85% to $94.1 million, resulting in an FRE margin of 44%. The firm also reported an adjusted net income of $80.6 million or $0.68 per share, marking a substantial increase from the previous year's $37.7 million or $0.33 per share. StepStone declared a base quarterly dividend of $0.24 and a supplemental dividend of $0.40, with the full fiscal year's dividend payout amounting to $1.36 per share, an increase from the previous year's $0.99. The company highlighted record fundraising efforts, raising over $31 billion in assets under management and achieving a fee-earning asset growth rate of 29%. Additionally, StepStone's private wealth platform grew notably, from $3.4 billion to over $8 billion in assets, driven by new products and expanded distribution. Despite market volatility, the company remains optimistic about its strategic growth and investment opportunities across global private markets.StepStone Group Financial Statement Overview
Summary
StepStone Group shows strong operational efficiency with high gross margins and positive cash flow performance. However, profitability challenges are evident with recent losses and inconsistent revenue growth. The balance sheet is sturdy due to zero debt, but low equity levels may risk long-term growth sustainability.Income Statement
The company's recent TTM (Trailing-Twelve-Months) report shows a significant drop in net income, resulting in a negative net profit margin. However, the gross profit margin is strong at 83.27%, indicating efficient cost management. Revenue growth has been inconsistent, with a decline in the most recent TTM data compared to previous years.45
Neutral
Balance Sheet
The balance sheet indicates a strong equity position with no debt in the latest TTM period, resulting in a debt-to-equity ratio of zero. However, the return on equity is negative due to the net loss, and the equity ratio stands at 4.82%, which is relatively low, indicating limited financial buffer.60
Neutral
Cash Flow
The company maintains a positive free cash flow with a healthy operating cash flow to net income ratio, despite the negative net income. The free cash flow to net income ratio is robust, suggesting effective cash management even during periods of financial stress.70
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.17B | 711.63M | -67.57M | 1.37B | 787.72M | Gross Profit |
| 1.13B | 339.09M | -281.81M | 562.83M | 384.55M | EBIT |
| -176.68M | 190.87M | -47.44M | 452.36M | 328.17M | EBITDA |
| 0.00 | 249.86M | 11.60M | 538.42M | 334.30M | Net Income Common Stockholders |
| -179.56M | 58.09M | -18.40M | 193.88M | 62.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 181.59M | 128.56M | 116.39M | 179.89M | Total Assets |
| 0.00 | 3.79B | 3.50B | 4.19B | 1.32B | Total Debt |
| 0.00 | 268.56M | 219.57M | 133.84M | 14.49M | Net Debt |
| 0.00 | 86.97M | 91.01M | 17.46M | -179.89M | Total Liabilities |
| 0.00 | 1.92B | 1.84B | 2.36B | 661.08M | Stockholders Equity |
| 0.00 | 324.48M | 771.57M | 817.63M | 249.41M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 141.91M | 145.56M | 212.18M | 148.04M | Operating Cash Flow |
| 0.00 | 161.52M | 151.18M | 214.28M | 149.30M | Investing Cash Flow |
| 0.00 | -47.35M | -30.81M | -210.24M | -11.17M | Financing Cash Flow |
| 0.00 | -57.98M | -108.02M | -70.44M | -45.31M |
StepStone Group Technical Analysis
Neutral
57.44
Price Trends
53.20
Positive
55.97
Positive
57.61
Negative
Market Momentum
0.94
Positive
53.26
Neutral
33.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STEP, the sentiment is Neutral. The current price of 57.44 is below the 20-day moving average (MA) of 58.26, above the 50-day MA of 53.20, and below the 200-day MA of 57.61, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STEP.
StepStone Group Risk Analysis
StepStone Group disclosed 67 risk factors in its most recent earnings report. StepStone Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StepStone Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.44B | 10.82 | 20.69% | 8.18% | ― | 53.17% | |
76 Outperform | $5.81B | 14.66 | 8.55% | 4.27% | 17.41% | -4.75% | |
74 Outperform | $5.21B | 14.38 | 12.81% | 0.02% | -6.37% | -28.43% | |
74 Outperform | $6.63B | 11.86 | 5.50% | 5.62% | 5.69% | ― | |
67 Neutral | $11.49B | 31.67 | 2.84% | 5.76% | 7.02% | -60.38% | |
64 Neutral | $12.83B | 9.78 | 7.78% | 16985.64% | 12.26% | -7.81% | |
63 Neutral | $6.69B | 103.13 | -71.28% | 1.60% | 118.79% | -285.61% |
* Financial Sector Average
Performance Comparison
STEP
StepStone Group
57.44
13.17
29.75%
AMG
Affiliated Managers
183.22
27.98
18.02%
AB
AllianceBernstein
40.39
10.29
34.19%
BEN
Franklin Resources
22.54
1.30
6.12%
IVZ
Invesco
14.81
0.34
2.35%
JHG
Janus Henderson Group
36.90
5.18
16.33%
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.