STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
50 USD
+1.13 (+2.31%)
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. There are concerns on the financial health of SCL while its profitability can be described as average. SCL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SCL had positive earnings in the past year.
In the past year SCL had a positive cash flow from operations.
Each year in the past 5 years SCL has been profitable.
Each year in the past 5 years SCL had a positive operating cash flow.
1.2 Ratios
SCL's Return On Assets of 2.40% is fine compared to the rest of the industry. SCL outperforms 61.45% of its industry peers.
The Return On Equity of SCL (4.67%) is better than 60.24% of its industry peers.
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 6.34%.
| 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 59.04% of the companies in the same industry.
In the last couple of years the Profit Margin of SCL has declined.
SCL has a worse Operating Margin (3.45%) than 67.47% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
SCL's Gross Margin of 12.38% is on the low side compared to the rest of the industry. SCL is outperformed by 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
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
SCL has about the same amout of shares outstanding than it did 5 years ago.
SCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, SCL is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that SCL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, SCL is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.47 |
ROIC/WACC0.43
WACC8.57%
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's Current ratio of 1.35 is on the low side compared to the rest of the industry. SCL is outperformed by 83.13% of its industry peers.
A Quick Ratio of 0.86 indicates that SCL may have some problems paying its short term obligations.
SCL has a Quick ratio of 0.86. This is in the lower half of the industry: SCL underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.26%, which is quite impressive.
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.
Measured over the past years, SCL shows a small growth in Revenue. The Revenue has been growing by 3.24% on average per year.
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
Based on estimates for the next years, SCL will show a very strong growth in Earnings Per Share. The EPS will grow by 35.60% on average per year.
The Revenue is expected to grow by 6.64% on average over the next years.
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
A Price/Earnings ratio of 19.92 indicates a rather expensive valuation of SCL.
SCL's Price/Earnings ratio is in line with the industry average.
SCL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 12.36, which indicates a correct valuation of SCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCL indicates a somewhat cheap valuation: SCL is cheaper than 71.08% of the companies listed in the same industry.
SCL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
SCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCL is cheaper than 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.59 |
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.
A more expensive valuation may be justified as SCL's earnings are expected to grow with 35.60% in the coming years.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y35.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 3.43, SCL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SCL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
On average, the dividend of SCL grows each year by 8.06%, which is quite nice.
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
59.45% of the earnings are spent on dividend by SCL. 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
NYSE:SCL (9/18/2025, 2:29:49 PM)
50
+1.13 (+2.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.87%
Inst Owner Change1.42%
Ins Owners5.42%
Ins Owner Change5.42%
Market Cap1.13B
Analysts45
Price Target86.7 (73.4%)
Short Float %1.7%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)-32.79%
EPS NQ rev (3m)-32.42%
EPS NY rev (1m)-24.21%
EPS NY rev (3m)-23.25%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 12.36 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | 10.36 | ||
| P/B | 0.91 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)2.51
EY5.02%
EPS(NY)4.05
Fwd EY8.09%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY9.65%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)1.87
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 | 2.47 |
F-Score6
WACC8.57%
ROIC/WACC0.43
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 Year211.13%
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%