STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
47.2 USD
-0.93 (-1.93%)
47.2 USD
0 (0%)
Taking everything into account, SCL scores 4 out of 10 in our fundamental rating. SCL was compared to 83 industry peers in the Chemicals industry. While SCL is still in line with the averages on profitability rating, there are concerns on its financial health. SCL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SCL was profitable.
In the past year SCL had a positive cash flow from operations.
SCL had positive earnings in each of the past 5 years.
Each year in the past 5 years SCL had a positive operating cash flow.
1.2 Ratios
SCL has a better Return On Assets (2.40%) than 61.45% of its industry peers.
With a decent Return On Equity value of 4.67%, SCL is doing good in the industry, outperforming 60.24% of the companies in the same industry.
SCL has a Return On Invested Capital (3.72%) which is comparable to the rest of the industry.
SCL had an Average Return On Invested Capital over the past 3 years of 5.63%. This is in line with the industry average of 6.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 4.67% | ||
| ROIC | 3.72% |
ROA(3y)3.31%
ROA(5y)4.77%
ROE(3y)6.74%
ROE(5y)9.18%
ROIC(3y)5.63%
ROIC(5y)7.38%
1.3 Margins
With a Profit Margin value of 2.57%, SCL perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
SCL's Profit Margin has declined in the last couple of years.
SCL's Operating Margin of 3.45% is on the low side compared to the rest of the industry. SCL is outperformed by 67.47% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
SCL has a Gross Margin of 12.38%. This is in the lower half of the industry: SCL underperforms 77.11% of its industry peers.
SCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.45% | ||
| PM (TTM) | 2.57% | ||
| GM | 12.38% |
OM growth 3Y-24.2%
OM growth 5Y-14.3%
PM growth 3Y-26.73%
PM growth 5Y-16.07%
GM growth 3Y-9.55%
GM growth 5Y-7.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCL is destroying value.
SCL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SCL remains at a similar level compared to 5 years ago.
The debt/assets ratio for SCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SCL (2.45) is better than 72.29% of its industry peers.
SCL has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SCL (0.31) is better than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.45
WACC8.29%
2.3 Liquidity
SCL has a Current Ratio of 1.35. This is a normal value and indicates that SCL is financially healthy and should not expect problems in meeting its short term obligations.
SCL has a Current ratio of 1.35. This is amonst the worse of the industry: SCL underperforms 83.13% of its industry peers.
SCL has a Quick Ratio of 1.35. 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 worse Quick ratio (0.86) than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.26% over the past year.
Measured over the past years, SCL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.51% on average per year.
The Revenue has been growing slightly by 2.64% in the past year.
SCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.24% yearly.
EPS 1Y (TTM)24.26%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%26.83%
Revenue 1Y (TTM)2.64%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 35.60% on average over the next years. This is a very strong growth
SCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y10.64%
EPS Next 2Y35.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.42%
Revenue Next 2Y8.18%
Revenue Next 3Y8.56%
Revenue Next 5Y6.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 rather expensively with a Price/Earnings ratio of 18.80.
SCL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.02, SCL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.67, the valuation of SCL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCL indicates a somewhat cheap valuation: SCL is cheaper than 69.88% of the companies listed in the same industry.
SCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
SCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCL is cheaper than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SCL's earnings are expected to grow with 35.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y35.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, SCL has a reasonable but not impressive dividend return.
In the last 3 months the price of SCL has falen by -20.03%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SCL's Dividend Yield is a higher than the industry average which is at 3.68.
Compared to an average S&P500 Dividend Yield of 2.43, SCL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
The dividend of SCL is nicely growing with an annual growth rate of 8.06%!
SCL has been paying a dividend for at least 10 years, so it has a reliable track record.
SCL has decreased its dividend recently.
Dividend Growth(5Y)8.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SCL pays out 59.45% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.45%
EPS Next 2Y35.6%
EPS Next 3YN/A
47.2
-0.93 (-1.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change-0.01%
Ins Owners5.55%
Ins Owner Change5.18%
Market Cap1.07B
Analysts45
Price Target86.7 (83.69%)
Short Float %1.87%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.51
Dividend Growth(5Y)8.06%
DP59.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.08%
Min EPS beat(2)-42.79%
Max EPS beat(2)30.63%
EPS beat(4)2
Avg EPS beat(4)-5.28%
Min EPS beat(4)-65.06%
Max EPS beat(4)56.09%
EPS beat(8)3
Avg EPS beat(8)-1.07%
EPS beat(12)5
Avg EPS beat(12)-4.69%
EPS beat(16)8
Avg EPS beat(16)0.1%
Revenue beat(2)1
Avg Revenue beat(2)1.84%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)5.27%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-7.59%
Max Revenue beat(4)5.27%
Revenue beat(8)1
Avg Revenue beat(8)-3.16%
Revenue beat(12)3
Avg Revenue beat(12)-2.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 11.67 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | 9.78 | ||
| P/B | 0.86 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)2.51
EY5.32%
EPS(NY)4.05
Fwd EY8.57%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY10.22%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)1.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 4.67% | ||
| ROCE | 4.47% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 4.28% | ||
| OM | 3.45% | ||
| PM (TTM) | 2.57% | ||
| GM | 12.38% | ||
| FCFM | N/A |
ROA(3y)3.31%
ROA(5y)4.77%
ROE(3y)6.74%
ROE(5y)9.18%
ROIC(3y)5.63%
ROIC(5y)7.38%
ROICexc(3y)6.06%
ROICexc(5y)8.61%
ROICexgc(3y)6.68%
ROICexgc(5y)9.41%
ROCE(3y)6.76%
ROCE(5y)8.87%
ROICexcg growth 3Y-28.84%
ROICexcg growth 5Y-19.33%
ROICexc growth 3Y-28.18%
ROICexc growth 5Y-20.06%
OM growth 3Y-24.2%
OM growth 5Y-14.3%
PM growth 3Y-26.73%
PM growth 5Y-16.07%
GM growth 3Y-9.55%
GM growth 5Y-7.34%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 103.51% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 55.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.45 |
F-Score6
WACC8.29%
ROIC/WACC0.45
Cap/Depr(3y)225.06%
Cap/Depr(5y)209.82%
Cap/Sales(3y)9.23%
Cap/Sales(5y)8.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.26%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%26.83%
EPS Next Y10.64%
EPS Next 2Y35.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.64%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%6.88%
Revenue Next Year8.42%
Revenue Next 2Y8.18%
Revenue Next 3Y8.56%
Revenue Next 5Y6.64%
EBIT growth 1Y7.67%
EBIT growth 3Y-26.03%
EBIT growth 5Y-11.52%
EBIT Next Year187.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y93.02%
FCF growth 3YN/A
FCF growth 5Y-19.02%
OCF growth 1Y-31.1%
OCF growth 3Y30.97%
OCF growth 5Y-5.79%