STEPAN CO (SCL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SCL • US8585861003

61.73 USD
-1.84 (-2.89%)
At close: Feb 5, 2026
62 USD
+0.27 (+0.44%)
After Hours: 2/5/2026, 4:46:44 PM
Fundamental Rating

4

Overall SCL gets a fundamental rating of 4 out of 10. We evaluated SCL against 83 industry peers in the Chemicals industry. SCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCL is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

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.
  • 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 0 100M -100M 200M

1.2 Ratios

  • SCL has a Return On Assets of 1.86%. This is in the better half of the industry: SCL outperforms 60.24% of its industry peers.
  • The Return On Equity of SCL (3.63%) is better than 61.45% of its industry peers.
  • The Return On Invested Capital of SCL (3.66%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SCL is in line with the industry average of 6.09%.
Industry RankSector 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%
SCL Yearly ROA, ROE, ROICSCL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • The Profit Margin of SCL (1.96%) is better than 60.24% of its industry peers.
  • SCL's Profit Margin has declined in the last couple of years.
  • SCL has a Operating Margin of 3.29%. This is in the lower half of the industry: SCL underperforms 65.06% 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 80.72% of its industry peers.
  • SCL's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
SCL Yearly Profit, Operating, Gross MarginsSCL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

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.
  • The number of shares outstanding for SCL remains at a similar level compared to 5 years ago.
  • SCL has a better debt/assets ratio than last year.
SCL Yearly Shares OutstandingSCL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B

2.2 Solvency

  • SCL has an Altman-Z score of 2.62. 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.
  • Looking at the Altman-Z score, with a value of 2.62, SCL is in the better half of the industry, outperforming 74.70% 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.
  • SCL has a Debt to FCF ratio (20.43) which is comparable to the rest of the 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 is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 20.43
Altman-Z 2.62
ROIC/WACC0.3
WACC12.12%
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 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.30 indicates that SCL should not have too much problems paying its short term obligations.
  • SCL has a worse Current ratio (1.30) than 83.13% of its industry peers.
  • 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: 78.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.3
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 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. Growth

3.1 Past

  • The earnings per share for SCL have decreased strongly by -18.67% in the last 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 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

  • SCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.67% yearly.
  • 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

  • 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.
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.49, which means the current valuation is very expensive for SCL.
  • 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 (28.25), we can say SCL is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 17.39, the valuation of SCL can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, SCL is valued a bit cheaper than the industry average as 60.24% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. SCL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 31.49
Fwd PE 17.39
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

  • 61.45% of the companies in the same industry are more expensive than SCL, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCL is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 43.53
EV/EBITDA 10
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

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • SCL's earnings are expected to grow with 28.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.27
PEG (5Y)N/A
EPS Next 2Y27.03%
EPS Next 3Y28.67%

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

6

5. Dividend

5.1 Amount

  • SCL has a Yearly Dividend Yield of 2.77%.
  • SCL's Dividend Yield is a higher than the industry average which is at 2.26.
  • Compared to an average S&P500 Dividend Yield of 1.82, SCL pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.77%

5.2 History

  • The dividend of SCL is nicely growing with an annual growth rate of 8.06%!
  • 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
SCL Yearly Dividends per shareSCL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • SCL pays out 76.82% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of SCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.82%
EPS Next 2Y27.03%
EPS Next 3Y28.67%
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 0 50M -50M 100M -100M
SCL Dividend Payout.SCL Dividend Payout, showing the Payout Ratio.SCL Dividend Payout.PayoutRetained Earnings

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STEPAN CO

NYSE:SCL (2/5/2026, 4:46:44 PM)

After market: 62 +0.27 (+0.44%)

61.73

-1.84 (-2.89%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-29
Earnings (Next)02-25
Inst Owners86.79%
Inst Owner Change-0.5%
Ins Owners5.55%
Ins Owner Change8.61%
Market Cap1.40B
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (40.45%)
Short Float %1.5%
Short Ratio1.76
Dividend
Industry RankSector Rank
Dividend Yield 2.77%
Yearly Dividend1.51
Dividend Growth(5Y)8.06%
DP76.82%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
Industry RankSector Rank
PE 31.49
Fwd PE 17.39
P/S 0.61
P/FCF 43.53
P/OCF 8.94
P/B 1.12
P/tB 1.26
EV/EBITDA 10
EPS(TTM)1.96
EY3.18%
EPS(NY)3.55
Fwd EY5.75%
FCF(TTM)1.42
FCFY2.3%
OCF(TTM)6.9
OCFY11.18%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)10.27
PEG (5Y)N/A
Graham Number49.3
Profitability
Industry RankSector 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 RankSector 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 2.62
F-Score5
WACC12.12%
ROIC/WACC0.3
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.


Can you provide the valuation status for STEPAN CO?

ChartMill assigns a valuation rating of 3 / 10 to STEPAN CO (SCL). This can be considered as Overvalued.


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 76.82%.