STEPAN CO (SCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCL - US8585861003 - Common Stock
47.21 USD
+0.14 (+0.3%)
47.21 USD
0 (0%)
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 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.
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.
1.2 Ratios
SCL's Return On Assets of 1.86% is fine compared to the rest of the industry. SCL outperforms 60.24% of its industry peers.
With a decent Return On Equity value of 3.63%, SCL is doing good in the industry, outperforming 61.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.66%, SCL is in line with its industry, outperforming 54.22% of the companies in the same 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 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 better Profit Margin (1.96%) than 60.24% of its industry peers.
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 66.27% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
SCL has a worse Gross Margin (11.94%) than 79.52% 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
SCL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SCL has been reduced compared to a year ago.
2.2 Solvency
SCL has an Altman-Z score of 2.44. 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.
The Altman-Z score of SCL (2.44) is better than 75.90% of its industry peers.
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.
The Debt to FCF ratio of SCL (20.43) 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.
SCL has a Debt to Equity ratio of 0.29. This is in the better half of the industry: SCL outperforms 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.32
WACC11.3%
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 Current ratio of 1.30. This is amonst the worse of the industry: SCL underperforms 81.93% of its industry peers.
A Quick Ratio of 0.84 indicates that SCL may have some problems paying its short term obligations.
SCL has a Quick ratio of 0.84. This is in the lower half of the industry: SCL underperforms 78.31% of its industry peers.
| 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%.
SCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.51% yearly.
Looking at the last year, SCL shows a small growth in Revenue. The Revenue has grown by 5.35% in the last year.
The Revenue has been growing slightly by 3.24% on average over the past years.
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.
The Revenue is expected to grow by 6.64% on average over the next years.
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.
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
SCL is valuated rather expensively with a Price/Earnings ratio of 24.09.
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 (26.84), we can say SCL is valued inline with the index average.
SCL is valuated correctly with a Price/Forward Earnings ratio of 13.30.
SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 67.47% of the companies in the same industry.
SCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 13.3 |
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 69.88% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.29 | ||
| EV/EBITDA | 8.11 |
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)7.86
PEG (5Y)N/A
EPS Next 2Y27.03%
EPS Next 3Y28.67%
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.36%. 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 2.48.
SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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.
The dividend of SCL decreased 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%
47.21
+0.14 (+0.3%)
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 Cap1.07B
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (83.65%)
Short Float %1.72%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 13.3 | ||
| P/S | 0.46 | ||
| P/FCF | 33.29 | ||
| P/OCF | 6.84 | ||
| P/B | 0.86 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)1.96
EY4.15%
EPS(NY)3.55
Fwd EY7.52%
FCF(TTM)1.42
FCFY3%
OCF(TTM)6.9
OCFY14.62%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)7.86
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 | 2.44 |
F-Score5
WACC11.3%
ROIC/WACC0.32
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%.