STEPAN CO (SCL) Fundamental Analysis & Valuation
NYSE:SCL • US8585861003
49.52 USD
-0.29 (-0.58%)
Last: Mar 5, 2026, 03:28 PM
This SCL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. SCL may be in some trouble as it scores bad on both profitability and health. SCL has a decent growth rate and is not valued too expensively.
1. SCL Profitability Analysis
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.
- SCL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- SCL's Return On Assets of 1.86% is in line compared to the rest of the industry. SCL outperforms 56.63% of its industry peers.
- Looking at the Return On Equity, with a value of 3.63%, SCL is in line with its industry, outperforming 57.83% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.55%, SCL is in line with its industry, outperforming 50.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROIC | 3.55% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 1.96%, 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 has a worse Operating Margin (3.29%) than 61.45% of its industry peers.
- In the last couple of years the Operating Margin of SCL has declined.
- With a Gross Margin value of 11.94%, SCL is not doing good in the industry: 79.52% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of SCL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.29% | ||
| PM (TTM) | 1.96% | ||
| GM | 11.94% |
OM growth 3Y-26.77%
OM growth 5Y-20.39%
PM growth 3Y-27.63%
PM growth 5Y-21.58%
GM growth 3Y-9.08%
GM growth 5Y-10.82%
2. SCL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCL is destroying value.
- There is no outstanding debt for SCL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- SCL has an Altman-Z score of 2.47. 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 (2.47) than 68.67% of its industry peers.
- The Debt to FCF ratio of SCL is 20.43, which is on the high side as it means it would take SCL, 20.43 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 20.43, SCL perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
- SCL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- SCL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. SCL outperforms 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.31
WACC11.4%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that SCL should not have too much problems paying its short term obligations.
- SCL's Current ratio of 1.30 is on the low side compared to the rest of the industry. SCL is outperformed by 84.34% of its industry peers.
- SCL has a Quick Ratio of 1.30. 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 (0.84) than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.84 |
3. SCL Growth Analysis
3.1 Past
- SCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.27%.
- Measured over the past years, SCL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.33% on average per year.
- SCL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.96%.
- The Revenue has been growing slightly by 4.52% on average over the past years.
EPS 1Y (TTM)-17.27%
EPS 3Y-35.11%
EPS 5Y-20.33%
EPS Q2Q%-116.67%
Revenue 1Y (TTM)6.96%
Revenue growth 3Y-5.61%
Revenue growth 5Y4.52%
Sales Q2Q%5.38%
3.2 Future
- Based on estimates for the next years, SCL will show a very strong growth in Earnings Per Share. The EPS will grow by 53.21% on average per year.
- Based on estimates for the next years, SCL will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y84.24%
EPS Next 2Y53.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.19%
Revenue Next 2Y4.94%
Revenue Next 3Y7.13%
Revenue Next 5Y5.88%
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. SCL Valuation Analysis
4.1 Price/Earnings Ratio
- SCL is valuated quite expensively with a Price/Earnings ratio of 27.21.
- SCL's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of SCL to the average of the S&P500 Index (27.03), we can say SCL is valued inline with the index average.
- SCL is valuated correctly with a Price/Forward Earnings ratio of 14.77.
- SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 63.86% of the companies in the same industry.
- SCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCL indicates a somewhat cheap valuation: SCL is cheaper than 73.49% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.95 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
- SCL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SCL's earnings are expected to grow with 53.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y53.21%
EPS Next 3YN/A
5. SCL Dividend Analysis
5.1 Amount
- SCL has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
- SCL's Dividend Yield is a higher than the industry average which is at 2.19.
- SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of SCL decreased recently.
Dividend Growth(5Y)8.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- SCL pays out 76.82% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.82%
EPS Next 2Y53.21%
EPS Next 3YN/A
SCL Fundamentals: All Metrics, Ratios and Statistics
NYSE:SCL (3/5/2026, 3:28:03 PM)
49.52
-0.29 (-0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-23 2026-02-23/bmo
Earnings (Next)04-27 2026-04-27
Inst Owners86.79%
Inst Owner Change-2.09%
Ins Owners5.55%
Ins Owner Change5.11%
Market Cap1.12B
Revenue(TTM)2.33B
Net Income(TTM)45.24M
Analysts80
Price Target76.5 (54.48%)
Short Float %1.8%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.51
Dividend Growth(5Y)8.06%
DP76.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-02 2026-03-02 (0.395)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.76%
Min EPS beat(2)-42.79%
Max EPS beat(2)-22.72%
EPS beat(4)1
Avg EPS beat(4)-24.99%
Min EPS beat(4)-65.06%
Max EPS beat(4)30.63%
EPS beat(8)3
Avg EPS beat(8)-1.9%
EPS beat(12)4
Avg EPS beat(12)-8.59%
EPS beat(16)7
Avg EPS beat(16)-1.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)5.27%
Revenue beat(8)1
Avg Revenue beat(8)-2.38%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-11.76%
PT rev (3m)-11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 14.77 | ||
| P/S | 0.49 | ||
| P/FCF | 34.95 | ||
| P/OCF | 7.18 | ||
| P/B | 0.9 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)1.82
EY3.68%
EPS(NY)3.35
Fwd EY6.77%
FCF(TTM)1.42
FCFY2.86%
OCF(TTM)6.9
OCFY13.93%
SpS101.76
BVpS55.07
TBVpS48.89
PEG (NY)0.32
PEG (5Y)N/A
Graham Number47.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROCE | 4.4% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.18% | ||
| OM | 3.29% | ||
| PM (TTM) | 1.96% | ||
| GM | 11.94% | ||
| FCFM | 1.39% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-26.77%
OM growth 5Y-20.39%
PM growth 3Y-27.63%
PM growth 5Y-21.58%
GM growth 3Y-9.08%
GM growth 5Y-10.82%
F-Score4
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 101.87% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 79.05% | ||
| Profit Quality | 70.9% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.47 |
F-Score4
WACC11.4%
ROIC/WACC0.31
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.27%
EPS 3Y-35.11%
EPS 5Y-20.33%
EPS Q2Q%-116.67%
EPS Next Y84.24%
EPS Next 2Y53.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.96%
Revenue growth 3Y-5.61%
Revenue growth 5Y4.52%
Sales Q2Q%5.38%
Revenue Next Year5.19%
Revenue Next 2Y4.94%
Revenue Next 3Y7.13%
Revenue Next 5Y5.88%
EBIT growth 1Y6.39%
EBIT growth 3Y-30.88%
EBIT growth 5Y-16.79%
EBIT Next Year173.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.03%
OCF growth 3YN/A
OCF growth 5YN/A
STEPAN CO / SCL FAQ
What is the fundamental rating for SCL stock?
ChartMill assigns a fundamental rating of 4 / 10 to SCL.
Can you provide the valuation status for STEPAN CO?
ChartMill assigns a valuation rating of 5 / 10 to STEPAN CO (SCL). This can be considered as Fairly Valued.
Can you provide the profitability details for STEPAN CO?
STEPAN CO (SCL) has a profitability rating of 3 / 10.
What is the financial health of STEPAN CO (SCL) stock?
The financial health rating of STEPAN CO (SCL) is 3 / 10.
How sustainable is the dividend of STEPAN CO (SCL) stock?
The dividend rating of STEPAN CO (SCL) is 6 / 10 and the dividend payout ratio is 76.82%.