STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
48.87 USD
+0.08 (+0.16%)
48.87 USD
0 (0%)
Taking everything into account, SCL scores 4 out of 10 in our fundamental rating. SCL was compared to 83 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.
In the past year SCL had a positive cash flow from operations.
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
SCL has a Return On Assets of 2.40%. This is in the better half of the industry: SCL outperforms 61.45% of its industry peers.
With a decent Return On Equity value of 4.67%, SCL is doing good in the industry, outperforming 60.24% of the companies in the same industry.
With a Return On Invested Capital value of 3.72%, SCL perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCL is in line with the industry average of 6.34%.
| 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 59.04% of its industry peers.
In the last couple of years the Profit Margin of SCL has declined.
The Operating Margin of SCL (3.45%) is worse than 67.47% of its industry peers.
SCL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.38%, SCL is not doing good in the industry: 77.11% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SCL has declined.
| 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.
The number of shares outstanding for SCL has been increased compared to 1 year ago.
SCL has about the same amout of shares outstanding than it did 5 years ago.
SCL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SCL (2.47) is better than 71.08% 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 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.47 |
ROIC/WACC0.43
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SCL should not have too much problems paying its short term obligations.
SCL's Current ratio of 1.35 is on the low side compared to the rest of the industry. SCL is outperformed by 83.13% of its industry peers.
A Quick Ratio of 0.86 indicates that SCL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, SCL is doing worse than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.26% over the past year.
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.
Looking at the last year, SCL shows a small growth in Revenue. The Revenue has grown by 2.64% in the last year.
The Revenue has been growing slightly by 3.24% on average over the past years.
EPS 1Y (TTM)24.26%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%26.83%
Revenue 1Y (TTM)2.64%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 35.60% 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 Y10.64%
EPS Next 2Y35.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.42%
Revenue Next 2Y8.18%
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.
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 19.47, the valuation of SCL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SCL.
When comparing the Price/Earnings ratio of SCL to the average of the S&P500 Index (27.20), we can say SCL is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.08 indicates a correct valuation of SCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCL indicates a somewhat cheap valuation: SCL is cheaper than 72.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SCL to the average of the S&P500 Index (22.70), we can say SCL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
SCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCL is cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.58 |
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 35.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y35.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
SCL's Dividend Yield is a higher than the industry average which is at 3.43.
SCL's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
On average, the dividend of SCL grows each year by 8.06%, which is quite nice.
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
59.45% of the earnings are spent on dividend by SCL. 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 2Y35.6%
EPS Next 3YN/A
48.87
+0.08 (+0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.87%
Inst Owner Change1.42%
Ins Owners5.42%
Ins Owner Change5.42%
Market Cap1.11B
Analysts45
Price Target86.7 (77.41%)
Short Float %1.7%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)-32.79%
EPS NQ rev (3m)-32.42%
EPS NY rev (1m)-24.21%
EPS NY rev (3m)-23.25%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 10.13 | ||
| P/B | 0.89 | ||
| P/tB | 1 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)2.51
EY5.14%
EPS(NY)4.05
Fwd EY8.28%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY9.87%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)1.83
PEG (5Y)N/A
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%
ROICexcg growth 3Y-28.84%
ROICexcg 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 | 2.47 |
F-Score6
WACC8.57%
ROIC/WACC0.43
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)24.26%
EPS 3Y-29.09%
EPS 5Y-15.51%
EPS Q2Q%26.83%
EPS Next Y10.64%
EPS Next 2Y35.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.64%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%6.88%
Revenue Next Year8.42%
Revenue Next 2Y8.18%
Revenue Next 3Y8.56%
Revenue Next 5Y6.64%
EBIT growth 1Y7.67%
EBIT growth 3Y-26.03%
EBIT growth 5Y-11.52%
EBIT Next Year211.13%
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%