STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
44.79 USD
+1.07 (+2.45%)
We assign a fundamental rating of 4 out of 10 to SCL. SCL was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCL was profitable.
SCL had a positive operating cash flow in the past year.
In the past 5 years SCL has always been profitable.
In the past 5 years SCL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.40%, SCL is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
The Return On Equity of SCL (4.67%) is better than 60.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.72%, SCL is in line with its industry, outperforming 50.00% 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 6.13%.
| 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.
In the last couple of years the Profit Margin of SCL has declined.
SCL has a Operating Margin of 3.45%. This is in the lower half of the industry: SCL underperforms 68.29% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
The Gross Margin of SCL (12.38%) is worse than 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
SCL has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SCL has been reduced compared to a year ago.
2.2 Solvency
SCL has an Altman-Z score of 2.41. 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 Altman-Z score of 2.41. This is in the better half of the industry: SCL outperforms 74.39% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that SCL is not too dependend on debt financing.
SCL has a Debt to Equity ratio of 0.31. This is in the better half of the industry: SCL outperforms 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.41 |
ROIC/WACC0.46
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SCL should not have too much problems paying its short term obligations.
SCL has a Current ratio of 1.35. This is amonst the worse of the industry: SCL underperforms 84.15% 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.
The Quick ratio of SCL (0.86) is worse than 76.83% 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 for SCL have decreased strongly by -18.67% 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 -15.51% yearly.
Looking at the last year, SCL shows a small growth in Revenue. The Revenue has grown by 5.35% in the last 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)-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
SCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.51% yearly.
The Revenue is expected to grow by 6.64% on average over the next years.
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
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 rather expensively with a Price/Earnings ratio of 22.85.
SCL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, SCL is valued at the same level.
With a Price/Forward Earnings ratio of 11.95, the valuation of SCL can be described as very reasonable.
SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 73.17% of the companies in the same industry.
SCL is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCL is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SCL's earnings are expected to grow with 30.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.53
PEG (5Y)N/A
EPS Next 2Y30.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.69%.
SCL's Dividend Yield is a higher than the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.36, SCL pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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 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
NYSE:SCL (11/13/2025, 11:45:09 AM)
44.79
+1.07 (+2.45%)
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 Cap1.01B
Revenue(TTM)2.30B
Net Income(TTM)58.01M
Analysts45
Price Target86.7 (93.57%)
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 | 22.85 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | 9.28 | ||
| P/B | 0.82 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 7.99 |
EPS(TTM)1.96
EY4.38%
EPS(NY)3.75
Fwd EY8.37%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY10.77%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)13.53
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 | 2.41 |
F-Score6
WACC8.09%
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%.