Step One ClothingASX:STP 39 Return-on-Tangible-Equity is -37.26% as of Dec. 2025. GuruFocus rates ASX:STP with a GF Score™ of 39/100 and a GF Value™ of A$0.64 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Step One Clothing ranks worse than 85.26% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Step One Clothing's annualized net income for the quarter that ended in Dec. 2025 was A$-16.94 Mil. Step One Clothing's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$45.45 Mil. Therefore, Step One Clothing's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -37.26%.
The historical rank and industry rank for Step One Clothing's Return-on-Tangible-Equity or its related term are showing as below:
ASX:STP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.18 Med: 19.52 Max: 24.29
Current: -8.18
During the past 5 years, Step One Clothing's highest Return-on-Tangible-Equity was 24.29%. The lowest was -8.18%. And the median was 19.52%.
ASX:STP's Return-on-Tangible-Equity is ranked worse than 85.26% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.4
vs ASX:STP: -8.18
Step One Clothing (ASX:STP) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Step One Clothing Return-on-Tangible-Equity Related Terms
Step One Clothing Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Step One Clothing's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Apparel Retail subindustry, Step One Clothing's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Step One Clothing's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Step One Clothing's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -37.26% mean?
Step One Clothing (ASX:STP) has a Return-on-Tangible-Equity of -37.26% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Step One Clothing and its competitors. According to the industry distribution chart, Step One Clothing ranks #902 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 85.3%.
Is Step One Clothing's Return-on-Tangible-Equity too high?
Step One Clothing's current Return-on-Tangible-Equity is -37.26%. Based on the distribution chart, Step One Clothing ranks #902 out of 1058 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Step One Clothing has a GF Score™ of 39/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Step One Clothing's Return-on-Tangible-Equity compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Step One Clothing ranks #902 out of 1058 companies for Return-on-Tangible-Equity. This places Step One Clothing in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.40, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Step One Clothing and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step One Clothing's current Return-on-Tangible-Equity is -37.26%. 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 Return-on-Tangible-Equity is -37.26%. Step One Clothing's overall GF Score™ is 39/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Step One Clothing (ASX:STP), the current Return-on-Tangible-Equity is -37.26% 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:
Return-on-Tangible-Equity: -37.26%
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.
39GF Score
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