StepStone Group Inc. Class A Common Stock (STEP)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach StepStone as a Graham-style analyst. It is a private-markets asset manager with a $3.5 billion market cap at $42.24 on 2026-10-13. Revenue has scaled rapidly: from $711.6 million in fiscal 2024, ended 2024-03-31, to $1.2 billion in fiscal 2025, ended 2025-03-31, and $2.0 billion in fiscal 2026, ended 2026-03-31. Yet reported net income went from a profit of $58.1 million to losses of $179.6 million and $535.8 million over those same years; diluted EPS went from $0.91 to -$2.52 to -$6.78. In fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $378.9 million and net loss was $115.8 million, or -$1.41 per diluted share. That is not the profile of a durable moat; growth without profits is speculative. Balance-sheet and cash-flow signals are poor: FairStock shows a P/E of -5.49, ROE of -61.40%, ROCE of -11.64%, debt-to-equity of 1.26, trailing free cash flow of -$439.4 million, and FCF yield of -12.7%. Its Piotroski score is 1/9 and Altman Z-score is 0.19, which point to distress. Its FairStock score is 36/100, reinforcing a weak overall picture. The 3.71% dividend while cash flow is negative is another yellow flag. FairStock classifies it as a TURNAROUND because it lost money in the latest year after earlier profits. The stock sits near the bottom of its 52-week range ($38.85-$77.79), but a low price is not value if earnings and cash flow are deteriorating. I would need evidence of underwriting discipline, stable fee streams, and a return to positive cash generation before calling this a bargain.

In plain English: StepStone Group manages private-market investments, including funds and direct deals in private companies, debt, and buyouts. It has grown revenue quickly but has recently lost money and burned cash, so the business looks financially weak right now. At $42.24, the price does not look clearly cheap because earnings and cash flow are negative, even though the stock is near the low end of its 52-week range.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer