STEPAN CO (SCL) Fundamental Analysis & Valuation

NYSE:SCL • US8585861003

Current stock price

46.92 USD
+2.08 (+4.64%)
Last:

This SCL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. SCL Profitability Analysis

1.1 Basic Checks

  • In the past year SCL was profitable.
  • SCL had a positive operating cash flow in the past year.
  • Each year in the past 5 years SCL has been profitable.
  • SCL had a positive operating cash flow in each of the past 5 years.
SCL Yearly Net Income VS EBIT VS OCF VS FCFSCL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M

1.2 Ratios

  • SCL has a better Return On Assets (1.99%) than 62.65% of its industry peers.
  • With a decent Return On Equity value of 3.77%, SCL is doing good in the industry, outperforming 61.45% of the companies in the same industry.
  • SCL has a Return On Invested Capital (3.29%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SCL is below the industry average of 6.51%.
Industry RankSector Rank
ROA 1.99%
ROE 3.77%
ROIC 3.29%
ROA(3y)1.96%
ROA(5y)3.72%
ROE(3y)3.79%
ROE(5y)7.37%
ROIC(3y)3.37%
ROIC(5y)5.73%
SCL Yearly ROA, ROE, ROICSCL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • SCL has a Profit Margin of 2.01%. This is comparable to the rest of the industry: SCL outperforms 56.63% of its industry peers.
  • SCL's Profit Margin has declined in the last couple of years.
  • SCL has a Operating Margin of 2.95%. This is in the lower half of the industry: SCL underperforms 61.45% of its industry peers.
  • SCL's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 11.57%, 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 RankSector Rank
OM 2.95%
PM (TTM) 2.01%
GM 11.57%
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%
SCL Yearly Profit, Operating, Gross MarginsSCL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. SCL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCL is destroying value.
  • The number of shares outstanding for SCL has been increased compared to 1 year ago.
  • Compared to 5 years ago, SCL has more shares outstanding
  • The debt/assets ratio for SCL has been reduced compared to a year ago.
SCL Yearly Shares OutstandingSCL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M
SCL Yearly Total Debt VS Total AssetsSCL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • SCL has an Altman-Z score of 2.49. 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.
  • The Altman-Z score of SCL (2.49) is better than 67.47% of its industry peers.
  • SCL has a debt to FCF ratio of 24.70. This is a negative value and a sign of low solvency as SCL would need 24.70 years to pay back of all of its debts.
  • SCL has a Debt to FCF ratio of 24.70. This is comparable to the rest of the industry: SCL outperforms 45.78% of its industry peers.
  • SCL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of SCL (0.27) is better than 78.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 24.7
Altman-Z 2.49
ROIC/WACC0.29
WACC11.3%
SCL Yearly LT Debt VS Equity VS FCFSCL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • SCL has a Current Ratio of 1.29. This is a normal value and indicates that SCL is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.29, SCL is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.84 indicates that SCL may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.84, SCL is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 0.84
SCL Yearly Current Assets VS Current LiabilitesSCL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • SCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.33% yearly.
  • The Revenue has been growing slightly by 6.96% in the past year.
  • 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

  • SCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.21% yearly.
  • The Revenue is expected to grow by 5.88% on average over the next years.
EPS Next Y84.24%
EPS Next 2Y53.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2Y5.04%
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.
  • 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.
SCL Yearly Revenue VS EstimatesSCL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
SCL Yearly EPS VS EstimatesSCL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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5

4. SCL Valuation Analysis

4.1 Price/Earnings Ratio

  • SCL is valuated quite expensively with a Price/Earnings ratio of 25.78.
  • SCL's Price/Earnings is on the same level as the industry average.
  • SCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 13.99, the valuation of SCL can be described as correct.
  • Based on the Price/Forward Earnings ratio, SCL is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
  • SCL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.78
Fwd PE 13.99
SCL Price Earnings VS Forward Price EarningsSCL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SCL is valued a bit cheaper than 79.52% of the companies in the same industry.
  • SCL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 41.87
EV/EBITDA 7.74
SCL Per share dataSCL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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)0.31
PEG (5Y)N/A
EPS Next 2Y53.21%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SCL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.48%, SCL has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.12, SCL pays a better dividend. On top of this SCL pays more dividend than 83.13% of the companies listed in the same industry.
  • SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.48%

5.2 History

  • The dividend of SCL is nicely growing with an annual growth rate of 6.58%!
  • 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)6.58%
Div Incr Years1
Div Non Decr Years1
SCL Yearly Dividends per shareSCL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 74.70% of the earnings are spent on dividend by SCL. This is not a sustainable payout ratio.
  • SCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP74.7%
EPS Next 2Y53.21%
EPS Next 3YN/A
SCL Yearly Income VS Free CF VS DividendSCL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M
SCL Dividend Payout.SCL Dividend Payout, showing the Payout Ratio.SCL Dividend Payout.PayoutRetained Earnings

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SCL Fundamentals: All Metrics, Ratios and Statistics

STEPAN CO

NYSE:SCL (3/23/2026, 1:18:06 PM)

46.92

+2.08 (+4.64%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-23
Earnings (Next)04-27
Inst Owners85.34%
Inst Owner Change-2.06%
Ins Owners5.73%
Ins Owner Change6.1%
Market Cap1.06B
Revenue(TTM)2.33B
Net Income(TTM)46.90M
Analysts80
Price Target76.5 (63.04%)
Short Float %1.96%
Short Ratio2.22
Dividend
Industry RankSector Rank
Dividend Yield 3.48%
Yearly Dividend1.55
Dividend Growth(5Y)6.58%
DP74.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-02
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-63.87%
Min EPS beat(2)-105.01%
Max EPS beat(2)-22.72%
EPS beat(4)1
Avg EPS beat(4)-34.98%
Min EPS beat(4)-105.01%
Max EPS beat(4)30.63%
EPS beat(8)3
Avg EPS beat(8)-13.56%
EPS beat(12)3
Avg EPS beat(12)-18.06%
EPS beat(16)7
Avg EPS beat(16)-8.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.89%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-3.89%
Max Revenue beat(4)5.27%
Revenue beat(8)1
Avg Revenue beat(8)-2.69%
Revenue beat(12)1
Avg Revenue beat(12)-3.81%
Revenue beat(16)5
Avg Revenue beat(16)-1.46%
PT rev (1m)0%
PT rev (3m)-11.76%
EPS NQ rev (1m)-51.65%
EPS NQ rev (3m)-51.65%
EPS NY rev (1m)-5.55%
EPS NY rev (3m)-5.55%
Revenue NQ rev (1m)-6.58%
Revenue NQ rev (3m)-6.58%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-3.08%
Valuation
Industry RankSector Rank
PE 25.78
Fwd PE 13.99
P/S 0.46
P/FCF 41.87
P/OCF 7.18
P/B 0.85
P/tB 0.96
EV/EBITDA 7.74
EPS(TTM)1.82
EY3.88%
EPS(NY)3.35
Fwd EY7.15%
FCF(TTM)1.12
FCFY2.39%
OCF(TTM)6.53
OCFY13.92%
SpS103.01
BVpS54.95
TBVpS49.11
PEG (NY)0.31
PEG (5Y)N/A
Graham Number47.44
Profitability
Industry RankSector Rank
ROA 1.99%
ROE 3.77%
ROCE 4.07%
ROIC 3.29%
ROICexc 3.57%
ROICexgc 3.9%
OM 2.95%
PM (TTM) 2.01%
GM 11.57%
FCFM 1.09%
ROA(3y)1.96%
ROA(5y)3.72%
ROE(3y)3.79%
ROE(5y)7.37%
ROIC(3y)3.37%
ROIC(5y)5.73%
ROICexc(3y)3.54%
ROICexc(5y)6.25%
ROICexgc(3y)3.87%
ROICexgc(5y)6.93%
ROCE(3y)4.17%
ROCE(5y)7.1%
ROICexgc growth 3Y-30.74%
ROICexgc growth 5Y-23.55%
ROICexc growth 3Y-30.43%
ROICexc growth 5Y-24.07%
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-Score5
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 24.7
Debt/EBITDA 1.75
Cap/Depr 97.2%
Cap/Sales 5.25%
Interest Coverage 2.4
Cash Conversion 75.86%
Profit Quality 54.1%
Current Ratio 1.29
Quick Ratio 0.84
Altman-Z 2.49
F-Score5
WACC11.3%
ROIC/WACC0.29
Cap/Depr(3y)151.26%
Cap/Depr(5y)198.05%
Cap/Sales(3y)7.36%
Cap/Sales(5y)8.28%
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 Year4.81%
Revenue Next 2Y5.04%
Revenue Next 3Y7.13%
Revenue Next 5Y5.88%
EBIT growth 1Y-2.24%
EBIT growth 3Y-30.88%
EBIT growth 5Y-16.79%
EBIT Next Year173.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.41%
FCF growth 3YN/A
FCF growth 5Y-25.07%
OCF growth 1Y-8.74%
OCF growth 3Y-2.75%
OCF growth 5Y-8.86%

STEPAN CO / SCL Fundamental Analysis 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 4 / 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 74.7%.