STEPAN CO (SCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCL - US8585861003 - Common Stock
45.4 USD
+0.79 (+1.77%)
45.4 USD
0 (0%)
SCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. SCL has an average financial health and profitability rating. 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.
SCL had a positive operating cash flow in the past year.
SCL had positive earnings in each of the past 5 years.
SCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SCL (1.86%) is better than 60.98% of its industry peers.
Looking at the Return On Equity, with a value of 3.63%, SCL is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
SCL has a Return On Invested Capital (3.66%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SCL is in line with the industry average of 6.05%.
| 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
SCL has a Profit Margin of 1.96%. This is comparable to the rest of the industry: SCL outperforms 59.76% of its industry peers.
In the last couple of years the Profit Margin of SCL has declined.
The Operating Margin of SCL (3.29%) is worse than 67.07% of its industry peers.
SCL's Operating Margin has declined in the last couple of years.
SCL has a worse Gross Margin (11.94%) than 79.27% of its industry peers.
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.
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.
Compared to 1 year ago, SCL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 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 2.41, SCL is doing good in the industry, outperforming 76.83% of the companies in the same industry.
The Debt to FCF ratio of SCL is 20.43, which is on the high side as it means it would take SCL, 20.43 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 20.43, SCL perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that SCL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, SCL belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.44
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.30 indicates that SCL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, SCL is doing worse than 82.93% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.84, SCL is doing worse than 79.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
SCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.67%.
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 5.35% in the last year.
Measured over the past years, SCL shows a small growth in Revenue. The Revenue has been growing by 3.24% on average per year.
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 28.67% 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 Y3.07%
EPS Next 2Y27.03%
EPS Next 3Y28.67%
EPS Next 5YN/A
Revenue Next Year7.97%
Revenue Next 2Y8.05%
Revenue Next 3Y6.91%
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 23.16, 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 (26.28), we can say SCL is valued inline with the index average.
A Price/Forward Earnings ratio of 12.79 indicates a correct valuation of SCL.
SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 64.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, SCL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
SCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCL is cheaper than 73.17% of the companies in the same industry.
SCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.02 | ||
| EV/EBITDA | 7.83 |
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.
A more expensive valuation may be justified as SCL's earnings are expected to grow with 28.67% in the coming years.
PEG (NY)7.56
PEG (5Y)N/A
EPS Next 2Y27.03%
EPS Next 3Y28.67%
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.51%.
Compared to an average industry Dividend Yield of 3.98, SCL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, SCL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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 2Y27.03%
EPS Next 3Y28.67%
45.4
+0.79 (+1.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.77%
Inst Owner Change1.41%
Ins Owners5.55%
Ins Owner Change3.87%
Market Cap1.03B
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (90.97%)
Short Float %1.69%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)-8.14%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)1.35%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 12.79 | ||
| P/S | 0.45 | ||
| P/FCF | 32.02 | ||
| P/OCF | 6.58 | ||
| P/B | 0.82 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)1.96
EY4.32%
EPS(NY)3.55
Fwd EY7.82%
FCF(TTM)1.42
FCFY3.12%
OCF(TTM)6.9
OCFY15.21%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)7.56
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 | 2.41 |
F-Score5
WACC8.29%
ROIC/WACC0.44
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 Y3.07%
EPS Next 2Y27.03%
EPS Next 3Y28.67%
EPS Next 5YN/A
Revenue 1Y (TTM)5.35%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%7.94%
Revenue Next Year7.97%
Revenue Next 2Y8.05%
Revenue Next 3Y6.91%
Revenue Next 5Y6.64%
EBIT growth 1Y6.39%
EBIT growth 3Y-26.03%
EBIT growth 5Y-11.52%
EBIT Next Year183.79%
EBIT Next 3Y59.09%
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 3.07% 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%.