STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
44.17 USD
-0.42 (-0.94%)
44.17 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SCL. SCL was compared to 82 industry peers in the Chemicals industry. While SCL is still in line with the averages on profitability rating, there are concerns on its financial health. SCL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SCL was profitable.
In the past year SCL had a positive cash flow from operations.
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 1.86%, SCL is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.63%, SCL is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
SCL's Return On Invested Capital of 3.66% is in line compared to the rest of the industry. SCL outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCL is in line with the industry average of 6.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROIC | 3.66% |
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 1.96%, SCL perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Profit Margin of SCL has declined.
SCL's Operating Margin of 3.29% is on the low side compared to the rest of the industry. SCL is outperformed by 68.29% of its industry peers.
SCL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.94%, SCL is doing worse than 76.83% of the companies in the same industry.
SCL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.29% | ||
| PM (TTM) | 1.96% | ||
| GM | 11.94% |
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.
SCL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCL has about the same amount of shares outstanding.
Compared to 1 year ago, SCL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.40, SCL is doing good in the industry, outperforming 76.83% of the companies in the same industry.
SCL has a debt to FCF ratio of 20.43. This is a negative value and a sign of low solvency as SCL would need 20.43 years to pay back of all of its debts.
A Debt/Equity ratio of 0.29 indicates that SCL is not too dependend on debt financing.
SCL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. SCL outperforms 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.45
WACC8.1%
2.3 Liquidity
SCL has a Current Ratio of 1.30. This is a normal value and indicates that SCL is financially healthy and should not expect problems in meeting its short term obligations.
SCL has a worse Current ratio (1.30) than 84.15% 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.
With a Quick ratio value of 0.84, SCL is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for SCL have decreased strongly by -18.67% in the last year.
The earnings per share for SCL have been decreasing by -15.51% on average. This is quite bad
The Revenue has been growing slightly by 5.35% in the past 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
Based on estimates for the next years, SCL will show a very strong growth in Earnings Per Share. The EPS will grow by 30.51% on average per year.
SCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
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.
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 22.54.
Compared to the rest of the industry, the Price/Earnings ratio of SCL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SCL to the average of the S&P500 Index (25.89), we can say SCL is valued inline with the index average.
The Price/Forward Earnings ratio is 11.79, which indicates a very decent valuation of SCL.
SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 71.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, SCL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 11.79 |
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 68.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.15 | ||
| EV/EBITDA | 7.77 |
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)13.35
PEG (5Y)N/A
EPS Next 2Y30.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.54%.
Compared to an average industry Dividend Yield of 4.01, SCL pays a bit more dividend than its industry peers.
SCL's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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
SCL pays out 76.82% of its income as dividend. This is not a sustainable payout ratio.
SCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.82%
EPS Next 2Y30.51%
EPS Next 3YN/A
44.17
-0.42 (-0.94%)
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 Cap999.13M
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (96.29%)
Short Float %1.83%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend1.51
Dividend Growth(5Y)8.06%
DP76.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.1%
EPS NY rev (1m)-8.09%
EPS NY rev (3m)-30.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.43 | ||
| P/FCF | 31.15 | ||
| P/OCF | 6.4 | ||
| P/B | 0.8 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)1.96
EY4.44%
EPS(NY)3.75
Fwd EY8.48%
FCF(TTM)1.42
FCFY3.21%
OCF(TTM)6.9
OCFY15.63%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)13.35
PEG (5Y)N/A
Graham Number49.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROCE | 4.4% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.3% | ||
| OM | 3.29% | ||
| PM (TTM) | 1.96% | ||
| GM | 11.94% | ||
| FCFM | 1.39% |
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-Score5
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 | 2.4 |
F-Score5
WACC8.1%
ROIC/WACC0.45
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 1Y6.39%
EBIT growth 3Y-26.03%
EBIT growth 5Y-11.52%
EBIT Next Year187.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y127.16%
FCF growth 3YN/A
FCF growth 5Y-19.02%
OCF growth 1Y-18.57%
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 76.82%.