STEPAN CO (SCL) Fundamental Analysis & Valuation

NYSE:SCL • US8585861003

Current stock price

52.4 USD
+0.34 (+0.65%)
Last:

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

3

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.
  • Each year in the past 5 years SCL had a positive operating cash flow.
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's Return On Assets of 1.99% is in line compared to the rest of the industry. SCL outperforms 59.76% of its industry peers.
  • SCL has a Return On Equity of 3.77%. This is comparable to the rest of the industry: SCL outperforms 59.76% of its industry peers.
  • SCL has a Return On Invested Capital of 3.29%. This is comparable to the rest of the industry: SCL outperforms 47.56% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SCL is below the industry average of 6.49%.
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 54.88% of its industry peers.
  • In the last couple of years the Profit Margin of SCL has declined.
  • Looking at the Operating Margin, with a value of 2.95%, SCL is doing worse than 60.98% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SCL has declined.
  • SCL has a worse Gross Margin (11.57%) than 80.49% of its industry peers.
  • SCL's Gross Margin has declined in the last couple of years.
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.
  • SCL has more shares outstanding than it did 1 year ago.
  • SCL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SCL has an improved debt to assets ratio.
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 2.58. 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 better Altman-Z score (2.58) than 68.29% 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 42.68% of its industry peers.
  • A Debt/Equity ratio of 0.27 indicates that SCL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.27, SCL is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 24.7
Altman-Z 2.58
ROIC/WACC0.28
WACC11.68%
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.
  • SCL has a worse Current ratio (1.29) than 82.93% of its industry peers.
  • SCL has a Quick Ratio of 1.29. This is a bad value and indicates that SCL is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SCL has a worse Quick ratio (0.84) than 71.95% of its industry peers.
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.
  • Looking at the last year, SCL shows a small growth in Revenue. The Revenue has grown by 6.96% in the last year.
  • SCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
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

  • The Earnings Per Share is expected to grow by 52.12% 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 5.88% on average per year.
EPS Next Y56.77%
EPS Next 2Y52.12%
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

  • 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.
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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4

4. SCL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.79 indicates a quite expensive valuation of SCL.
  • The rest of the industry has a similar Price/Earnings ratio as SCL.
  • SCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • SCL is valuated rather expensively with a Price/Forward Earnings ratio of 18.37.
  • SCL's Price/Forward Earnings ratio is in line with the industry average.
  • SCL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.79
Fwd PE 18.37
SCL Price Earnings VS Forward Price EarningsSCL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SCL is valued a bit cheaper than 75.61% 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 46.87
EV/EBITDA 8.59
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.
  • A more expensive valuation may be justified as SCL's earnings are expected to grow with 52.12% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y52.12%
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 3.05%, SCL has a reasonable but not impressive dividend return.
  • SCL's Dividend Yield is rather good when compared to the industry average which is at 2.01. SCL pays more dividend than 81.71% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, SCL pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.05%

5.2 History

  • On average, the dividend of SCL grows each year by 6.58%, which is quite nice.
  • SCL has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of SCL decreased in the last 3 years.
Dividend Growth(5Y)6.58%
Div Incr Years2
Div Non Decr Years2
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.
  • The dividend of SCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.7%
EPS Next 2Y52.12%
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 (4/27/2026, 12:41:41 PM)

52.4

+0.34 (+0.65%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-23
Earnings (Next)04-28
Inst Owners85.44%
Inst Owner Change0.51%
Ins Owners5.62%
Ins Owner Change6.08%
Market Cap1.19B
Revenue(TTM)2.33B
Net Income(TTM)46.90M
Analysts80
Price Target76.5 (45.99%)
Short Float %1.85%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield 3.05%
Yearly Dividend1.55
Dividend Growth(5Y)6.58%
DP74.7%
Div Incr Years2
Div Non Decr Years2
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)0%
EPS NQ rev (3m)-51.65%
EPS NY rev (1m)-14.91%
EPS NY rev (3m)-19.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.08%
Valuation
Industry RankSector Rank
PE 28.79
Fwd PE 18.37
P/S 0.51
P/FCF 46.87
P/OCF 8.04
P/B 0.96
P/tB 1.07
EV/EBITDA 8.59
EPS(TTM)1.82
EY3.47%
EPS(NY)2.85
Fwd EY5.45%
FCF(TTM)1.12
FCFY2.13%
OCF(TTM)6.52
OCFY12.44%
SpS102.78
BVpS54.83
TBVpS49
PEG (NY)0.51
PEG (5Y)N/A
Graham Number47.3829 (-9.57%)
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 2.58
F-Score5
WACC11.68%
ROIC/WACC0.28
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 Y56.77%
EPS Next 2Y52.12%
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 4 / 10 to STEPAN CO (SCL). This can be considered as Fairly Valued.


What is the profitability of SCL stock?

STEPAN CO (SCL) has a profitability rating of 3 / 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 56.77% 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 74.7%.