STEPAN CO (SCL)
US8585861003 - Common Stock
We assign a fundamental rating of 3 out of 10 to SCL. SCL was compared to 84 industry peers in the Chemicals industry. SCL has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SCL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SCL was profitable.
SCL had a positive operating cash flow in the past year.
SCL had positive earnings in each of the past 5 years.
SCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SCL (1.70%) is comparable to the rest of the industry.
With a Return On Equity value of 3.31%, SCL perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
With a Return On Invested Capital value of 3.33%, SCL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCL is in line with the industry average of 7.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.31% | ||
| ROIC | 3.33% |
ROA(3y)4.81%
ROA(5y)5.64%
ROE(3y)9.58%
ROE(5y)10.63%
ROIC(3y)7.27%
ROIC(5y)8.14%
1.3 Margins
SCL's Profit Margin of 1.73% is in line compared to the rest of the industry. SCL outperforms 40.48% of its industry peers.
In the last couple of years the Profit Margin of SCL has declined.
SCL has a worse Operating Margin (3.12%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
SCL's Gross Margin of 11.94% is on the low side compared to the rest of the industry. SCL is outperformed by 82.14% of its industry peers.
SCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 1.73% | ||
| GM | 11.94% |
OM growth 3Y-30.34%
OM growth 5Y-16.34%
PM growth 3Y-36.59%
PM growth 5Y-20.87%
GM growth 3Y-16.52%
GM growth 5Y-6.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCL is destroying value.
Compared to 1 year ago, SCL has more shares outstanding
Compared to 5 years ago, SCL has less shares outstanding
The debt/assets ratio for SCL is higher compared to a year ago.
2.2 Solvency
SCL has an Altman-Z score of 2.98. This is not the best score and indicates that SCL is in the grey zone with still only limited risk for bankruptcy at the moment.
SCL has a better Altman-Z score (2.98) than 78.57% of its industry peers.
SCL has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
SCL's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. SCL outperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.98 |
ROIC/WACC0.43
WACC7.82%
2.3 Liquidity
SCL has a Current Ratio of 1.40. This is a normal value and indicates that SCL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.40, SCL is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
SCL has a Quick Ratio of 1.40. This is a bad value and indicates that SCL is not financially healthy enough and could expect problems in meeting its short term obligations.
SCL has a Quick ratio of 0.96. This is in the lower half of the industry: SCL underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for SCL have decreased strongly by -66.82% in the last year.
SCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.65% yearly.
The Revenue for SCL has decreased by -16.14% in the past year. This is quite bad
Measured over the past years, SCL shows a small growth in Revenue. The Revenue has been growing by 3.13% on average per year.
EPS 1Y (TTM)-66.82%
EPS 3Y-26.95%
EPS 5Y-14.65%
EPS growth Q2Q-44.07%
Revenue 1Y (TTM)-16.14%
Revenue growth 3Y7.55%
Revenue growth 5Y3.13%
Revenue growth Q2Q-15.16%
3.2 Future
SCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.39% yearly.
SCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.18% yearly.
EPS Next Y15.51%
EPS Next 2Y45.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2%
Revenue Next 2Y5.4%
Revenue Next 3Y9.28%
Revenue Next 5Y7.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SCL is valuated quite expensively with a Price/Earnings ratio of 40.43.
SCL's Price/Earnings ratio is a bit more expensive when compared to the industry. SCL is more expensive than 61.90% of the companies in the same industry.
SCL is valuated rather expensively when we compare the Price/Earnings ratio to 28.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.00, which means the current valuation is very expensive for SCL.
SCL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SCL is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.48. SCL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.43 | ||
| Fwd PE | 35 |
4.2 Price Multiples
SCL's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCL does not grow enough to justify the current Price/Earnings ratio.
SCL's earnings are expected to grow with 45.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y45.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, SCL has a reasonable but not impressive dividend return.
SCL's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to the average S&P500 Dividend Yield of 2.39, SCL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of SCL is nicely growing with an annual growth rate of 9.67%!
SCL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
81.75% of the earnings are spent on dividend by SCL. This is not a sustainable payout ratio.
SCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.75%
EPS Next 2Y45.39%
EPS Next 3YN/A
STEPAN CO
NYSE:SCL (5/9/2024, 7:17:31 PM)
After market: 89.35 0 (0%)89.35
+2.15 (+2.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.43 | ||
| Fwd PE | 35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.12% | ||
| PM (TTM) | 1.73% | ||
| GM | 11.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-66.82%
EPS 3Y-26.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.14%
Revenue growth 3Y7.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y