StepStone Group (STEP) AI Stock Analysis

• Market Cap: $7.32B
• Dividend Yield: 2.26%
• Average Volume (3M): 700.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 88.68%
• EPS Growth: -494.20%
• Country: US
• Employees: 1,090
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 78,552,910
• 10 Day Avg. Volume: 511,848
• 30 Day Avg. Volume: 700,288
• PEG Ratio: 0.06
• Price to Book (P/B): 20.72
• Price to Sales (P/S): 3.16
• P/FCF Ratio: 62.11
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 34.01
• Enterprise Value/Ebitda: -21.67
• 1Y Price Target: $73.00
• Price Target Upside: 19.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $62.00 ▲(1.84% Upside)

The overall stock score of 47 reflects significant financial challenges, particularly in profitability and leverage, which are the most impactful factors. Technical analysis shows mixed signals, and valuation concerns due to a negative P/E ratio further weigh down the score. The absence of earnings call and corporate events data means these areas did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and increasing demand for StepStone's investment solutions, supporting long-term business expansion.

Strategic Expansion

Opening a new office in Riyadh enhances StepStone's presence in the Middle East, potentially increasing its client base and access to investment opportunities in a growing market.

Partnerships and Growth

The partnership with Aviva expands StepStone's reach into UK pension schemes, enhancing its market position and offering growth potential through increased asset management opportunities.

Negative Factors

High Leverage

High leverage increases financial risk and may limit StepStone's ability to invest in growth opportunities, impacting long-term financial stability.

Profitability Challenges

Negative margins indicate operational inefficiencies and cost pressures, which could hinder StepStone's ability to sustain profitability and reinvest in the business.

Declining Cash Flow

Declining cash flow growth suggests potential liquidity issues, limiting StepStone's capacity to fund operations and strategic initiatives, impacting long-term growth.

StepStone Group Business Overview & Revenue Model

Company Description

StepStone 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 Money

StepStone Group generates revenue primarily through management fees, performance fees, and advisory fees. Management fees are charged on the assets under management (AUM) and are typically calculated as a percentage of the committed capital or invested capital in the funds they manage. Performance fees, also known as carried interest, are earned when the investments exceed a predetermined threshold return, aligning the firm's interests with those of its investors. Additionally, StepStone provides advisory services to clients looking to navigate private market investments, charging fees for these consulting services. The firm's strategic partnerships with various investment funds and its extensive network within the private equity and alternative investment markets further enhance its ability to source lucrative investment opportunities, contributing to its overall earnings.

StepStone Group Financial Statement Overview

Summary

StepStone Group's financial performance is challenged by high leverage and negative profitability margins, despite strong revenue growth. The balance sheet shows significant financial risk with a high debt-to-equity ratio, and cash flow management indicates resilience but is under pressure.

Income Statement

StepStone Group's income statement shows a mixed performance. The company experienced a significant revenue growth rate of 15.31% in the TTM period, indicating strong top-line growth. However, profitability metrics are concerning, with negative net profit and EBIT margins, suggesting operational challenges. The gross profit margin has also declined compared to previous periods, reflecting increased cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.48 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting recent losses. The equity ratio has decreased, suggesting a weaker capital structure. These factors highlight potential financial instability and increased risk exposure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -7.37% in the TTM period. The operating cash flow to net income ratio is low, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio remains relatively strong, suggesting some resilience in cash flow management despite profitability challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35B	1.17B	711.63M	-67.57M	1.37B	787.72M
Gross Profit	176.45M	-89.47M	339.09M	171.60M	562.83M	384.55M
EBITDA	-276.93M	-205.23M	249.86M	11.60M	538.42M	334.30M
Net Income	-231.31M	-179.56M	58.09M	-18.40M	193.88M	62.63M
Balance Sheet
Total Assets	4.78B	4.59B	3.79B	3.50B	4.19B	1.32B
Cash, Cash Equivalents and Short-Term Investments	244.13M	289.30M	181.59M	128.56M	116.39M	179.89M
Total Debt	382.08M	382.79M	268.56M	219.57M	133.84M	0.00
Total Liabilities	3.08B	2.81B	1.92B	1.84B	2.36B	661.08M
Stockholders Equity	153.93M	179.36M	324.48M	771.57M	817.63M	249.41M
Cash Flow
Free Cash Flow	55.42M	59.83M	141.91M	145.56M	212.18M	148.04M
Operating Cash Flow	61.04M	64.93M	161.52M	151.18M	214.28M	149.30M
Investing Cash Flow	-42.06M	-43.48M	-47.35M	-30.81M	-210.24M	-11.17M
Financing Cash Flow	38.16M	87.48M	-57.98M	-108.02M	-70.44M	-45.31M

StepStone Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STEP, the sentiment is Negative. The current price of 60.88 is below the 20-day moving average (MA) of 63.57, below the 50-day MA of 63.32, and above the 200-day MA of 57.88, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 33.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STEP.

StepStone Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AB	―	$3.62B	13.18	19.77%	8.60%	―	-12.92%
IVZ	―	$10.57B	16.05	7.29%	3.46%	6.35%	―
AMG	―	$6.72B	17.90	13.47%	0.02%	-5.87%	-21.51%
JHG	―	$6.73B	16.42	11.10%	3.67%	17.59%	-8.81%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HLNE	―	$6.35B	21.91	32.03%	1.81%	10.66%	22.13%
STEP	―	$7.32B	―	-88.82%	2.26%	88.68%	-494.20%

StepStone Group Corporate Events

StepStone Group Amends Certificate of Incorporation

StepStone Group Inc., a Delaware corporation, announced that on September 9, 2025, its stockholders approved amendments to its Certificate of Incorporation to remove obsolete provisions and make clarifying changes. The amendments, effective upon filing on September 18, 2025, also included limiting the liability of certain officers as permitted by Delaware law, potentially impacting the company’s governance and operational clarity.

The most recent analyst rating on (STEP) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on StepStone Group stock, see the STEP Stock Forecast page.

StepStone Group Approves Key Amendments at Annual Meeting

On September 9, 2025, StepStone Group Inc., a Delaware corporation, held its 2025 Annual Meeting of Stockholders where several key amendments to the company’s Certificate of Incorporation were approved. These included the Exculpation Amendment, which limits the liability of certain officers, and the Clean-Up Amendments, which remove obsolete provisions and make technical changes. The meeting also saw the election of nine directors, the ratification of Ernst & Young LLP as the independent accounting firm, and the approval of executive compensation on an advisory basis. These changes are aimed at refining corporate governance and enhancing operational efficiency.

The most recent analyst rating on (STEP) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on StepStone Group stock, see the STEP Stock Forecast page.

StepStone Group Reports Mixed Q1 Fiscal 2026 Results

StepStone Group Inc. is a global private markets investment firm that specializes in providing customized investment solutions, advisory, and data services across various asset classes, including private equity, infrastructure, private debt, and real estate. The firm caters to a diverse clientele, including pension funds, sovereign wealth funds, insurance companies, and private wealth clients.