A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Step One Clothing's Debt-to-EBITDA or its related term are showing as below:
ASX:STP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.3 Med: 0.02 Max: 0.02
Current: -0.3
During the past 5 years, the highest Debt-to-EBITDA Ratio of Step One Clothing was 0.02. The lowest was -0.30. And the median was 0.02.
ASX:STP's Debt-to-EBITDA is ranked worse than 100% of 896
companies
in the Retail - Cyclical industry
Industry Median: 2.405
vs ASX:STP: -0.30
Step One Clothing (ASX:STP) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Step One Clothing Debt-to-EBITDA Related Terms
Step One Clothing Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Step One Clothing's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:STP vs TJX, ROST, BURL: Debt-to-EBITDA Comparison
For the Apparel Retail subindustry, Step One Clothing's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Step One Clothing Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Step One Clothing's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Step One Clothing's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Dec. 2025) EBITDA data.
Step One Clothing (ASX:STP) has a Debt-to-EBITDA of -0.05 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Step One Clothing. According to the industry distribution chart, Step One Clothing ranks #999999 out of 896 companies in the Retail - Cyclical industry.
Is Step One Clothing's Debt-to-EBITDA too high?
Step One Clothing's current Debt-to-EBITDA is -0.05. Based on the distribution chart, Step One Clothing ranks #999999 out of 896 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Step One Clothing has a GF Score™ of 35/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Step One Clothing's Debt-to-EBITDA compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Step One Clothing ranks #999999 out of 896 companies for Debt-to-EBITDA. This places Step One Clothing in the lower half of its industry. The industry median Debt-to-EBITDA is 2.41. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.41, based on 896 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Step One Clothing. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step One Clothing's current Debt-to-EBITDA is -0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Step One Clothing stock overvalued right now?
Based on GuruFocus' analysis, Step One Clothing (ASX:STP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.64, compared to a current price of A$0.14 — trading 78.1% below its estimated fair value. The current Debt-to-EBITDA is -0.05. Step One Clothing's overall GF Score™ is 35/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Step One Clothing (ASX:STP), the current Debt-to-EBITDA is -0.05 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Step One Clothing (ASX:STP) Overvalued in 2026?
Based on GuruFocus' analysis, Step One Clothing stock appears to be undervalued.
The current stock price of A$0.14 is trading 78.1% below its estimated GF Value™ of A$0.64.
GuruFocus considers Step One Clothing to be Significantly Undervalued.
Key valuation signals for ASX:STP:
Debt-to-EBITDA: -0.05
GF Value™: A$0.64 vs. price of A$0.14 (78.1% below fair value)
No single metric tells the full story. See the ASX:STP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Step One Clothing Ltd is a direct-to-consumer online retailer for men's undergarments. Its products comprise Boxer Brief, Trunks, and Boxer Breif+Fly. Its group is organized into three operating segments, being online retail sales for Australia, the United Kingdom, and the United States of America, however, these segments are aggregated into one reportable segment.
35GF Score
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