STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
43.32 USD
+0.55 (+1.29%)
43.32 USD
0 (0%)
Overall SCL gets a fundamental rating of 4 out of 10. We evaluated SCL against 82 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SCL had positive earnings in the past year.
SCL had a positive operating cash flow in the past year.
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
The Return On Assets of SCL (2.40%) is better than 60.98% of its industry peers.
The Return On Equity of SCL (4.67%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.72%, SCL is in line with its industry, outperforming 47.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCL is in line with the industry average of 6.22%.
| 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
SCL has a Profit Margin of 2.57%. This is comparable to the rest of the industry: SCL outperforms 56.10% of its industry peers.
SCL's Profit Margin has declined in the last couple of years.
The Operating Margin of SCL (3.45%) is worse than 69.51% 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 76.83% 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
Compared to 5 years ago, SCL has about the same amount of shares outstanding.
SCL has a better debt/assets ratio than last year.
2.2 Solvency
SCL has an Altman-Z score of 2.40. 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.
Looking at the Altman-Z score, with a value of 2.40, SCL is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that SCL is not too dependend on debt financing.
The Debt to Equity ratio of SCL (0.31) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.4 |
ROIC/WACC0.46
WACC8.06%
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.
The Current ratio of SCL (1.35) is worse than 82.93% 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.
With a Quick ratio value of 0.86, SCL is not doing good in the industry: 74.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.67%.
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.
SCL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
The Revenue has been growing slightly by 3.24% on average over the past years.
EPS 1Y (TTM)-18.67%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%-53.4%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%7.94%
3.2 Future
The Earnings Per Share is expected to grow by 30.51% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCL will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.
EPS Next Y1.69%
EPS Next 2Y30.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.06%
Revenue Next 2Y8.51%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.10, the valuation of SCL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SCL.
SCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
Based on the Price/Forward Earnings ratio of 11.56, the valuation of SCL can be described as reasonable.
70.73% of the companies in the same industry are more expensive than SCL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. SCL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCL is valued a bit cheaper than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.94 |
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 30.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.09
PEG (5Y)N/A
EPS Next 2Y30.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, SCL has a reasonable but not impressive dividend return.
SCL's Dividend Yield is a higher than the industry average which is at 4.15.
SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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.
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.
SCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.45%
EPS Next 2Y30.51%
EPS Next 3YN/A
43.32
+0.55 (+1.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change0.84%
Ins Owners5.55%
Ins Owner Change5.13%
Market Cap979.90M
Revenue(TTM)2.30B
Net Income(TTM)58.01M
Analysts45
Price Target86.7 (100.14%)
Short Float %1.83%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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)-32.79%
EPS NY rev (1m)-8.09%
EPS NY rev (3m)-30.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | 8.98 | ||
| P/B | 0.79 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)1.96
EY4.52%
EPS(NY)3.75
Fwd EY8.65%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY11.14%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)13.09
PEG (5Y)N/A
Graham Number49.2
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%
ROICexgc growth 3Y-28.84%
ROICexgc 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 | 2.4 |
F-Score6
WACC8.06%
ROIC/WACC0.46
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)-18.67%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%-53.4%
EPS Next Y1.69%
EPS Next 2Y30.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.35%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%7.94%
Revenue Next Year8.06%
Revenue Next 2Y8.51%
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%
STEPAN CO / SCL FAQ
What is the fundamental rating for SCL stock?
ChartMill assigns a fundamental rating of 4 / 10 to SCL.
What is the valuation status of STEPAN CO (SCL) stock?
ChartMill assigns a valuation rating of 4 / 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 4 / 10.
Can you provide the expected EPS growth for SCL stock?
The Earnings per Share (EPS) of STEPAN CO (SCL) is expected to grow by 1.69% in the next year.
Can you provide the dividend sustainability for SCL stock?
The dividend rating of STEPAN CO (SCL) is 6 / 10 and the dividend payout ratio is 59.45%.