StepStone Group Inc.
$43.63
-9.8%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -6.4).
Valuation inputs: P/E -6.4, earnings yield N/A, momentum -9.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +1.3%, ROIC +18.8%).
Profitability stack: net margin -26.9%, ROE +1.3%, ROIC +18.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +86.9%, momentum -9.8%, net margin -26.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
StepStone Group Inc. Market vs Earnings Trajectory
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StepStone Group Inc. Fair Value Envelope
StepStone Group Inc. Profit Bridge
Profitability Analysis
Gross Margin
Negative gross margin indicates the company is losing money on each sale—unsustainable long-term.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Interest or tax burden: Strong operational performance but thin net margins indicate high interest expenses or unfavorable tax position eating into profits.
StepStone Group Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
StepStone Group Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
StepStone Group Inc. Street Expectations Map
Wall Street analysts project that STEP stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 66.80, with estimates ranging from a low of 55.00 to a high of 85.00.
The consensus 1-year price target stands at 66.80, with estimates ranging from a low of 55.00 to a high of 85.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
StepStone Group Inc. Insider Positioning
During the last 12 months, insiders have purchased $508K and sold $16.58M worth of STEP shares, resulting in $16.07M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
11.5K
508.38K
123.2K
8.17M
-7.7M
-$7.67M
6-9 Months
0
0.00
43.6K
2.75M
-2.7M
-$2.75M
9-12 Months
0
0.00
97.7K
5.66M
-5.7M
-$5.66M
Top Buyers
Mitchell Steven R
Director
$508K
Top Sellers
Mccabe Michael I
Director, Officer, Other: Head Of Strategy
$11.01M
Hart Scott W
Director, Officer: Chief Executive Officer
$4.18M
Fernandez Jose A
Director, Officer: Co-Chief Operating Officer
$1.33M
Park David Y
Officer: Chief Financial Officer
$63K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $16.07M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
step Dividend History
Learning Layer
Related Guides
Build conviction on STEP by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.