STEPAN CO (SCL) Stock Fundamental Analysis
USA - NYSE:SCL - US8585861003 - Common Stock
45.57 USD
-0.05 (-0.11%)
45.57 USD
0 (0%)
SCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While SCL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years SCL has been profitable.
In the past 5 years SCL always reported a positive cash flow from operatings.
1.2 Ratios
SCL's Return On Assets of 2.40% is fine compared to the rest of the industry. SCL outperforms 61.45% of its industry peers.
SCL has a Return On Equity of 4.67%. This is in the better half of the industry: SCL outperforms 60.24% of its industry peers.
SCL has a Return On Invested Capital (3.72%) which 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 6.30%.
| 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 (2.57%) which is in line with its industry peers.
SCL's Profit Margin has declined in the last couple of years.
The Operating Margin of SCL (3.45%) is worse than 67.47% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
Looking at the Gross Margin, with a value of 12.38%, SCL is doing worse than 77.11% of the companies in the same industry.
SCL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCL is destroying value.
Compared to 1 year ago, SCL has more shares outstanding
Compared to 5 years ago, SCL has about the same amount of shares outstanding.
SCL has a better debt/assets ratio than last year.
2.2 Solvency
SCL has an Altman-Z score of 2.43. 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 2.43, SCL is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that SCL is not too dependend on debt financing.
The Debt to Equity ratio of SCL (0.31) is better than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC0.46
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SCL should not have too much problems paying its short term obligations.
SCL has a Current ratio of 1.35. This is amonst the worse of the industry: SCL underperforms 83.13% of its industry peers.
SCL has a Quick Ratio of 1.35. 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 Quick ratio of 0.86. This is in the lower half of the industry: SCL underperforms 74.70% of its industry peers.
| 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.
The earnings per share for SCL have been decreasing by -15.51% on average. This is quite bad
The Revenue has been growing slightly by 2.64% in the past year.
SCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.24% yearly.
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
Based on estimates for the next years, SCL will show a very strong growth in Earnings Per Share. The EPS will grow by 35.60% on average per year.
The Revenue is expected to grow by 6.64% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
SCL is valuated rather expensively with a Price/Earnings ratio of 18.16.
SCL's Price/Earnings is on the same level as the industry average.
SCL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.27, which indicates a very decent valuation of SCL.
Based on the Price/Forward Earnings ratio, SCL is valued a bit cheaper than 73.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. SCL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 11.27 |
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 66.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
SCL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SCL's earnings are expected to grow with 35.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)N/A
EPS Next 2Y35.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SCL has falen by -20.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SCL's Dividend Yield is a higher than the industry average which is at 3.76.
SCL's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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.
The dividend of SCL decreased 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
45.57
-0.05 (-0.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change0.09%
Ins Owners5.55%
Ins Owner Change5.18%
Market Cap1.03B
Analysts45
Price Target86.7 (90.26%)
Short Float %1.87%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)0%
EPS NQ rev (3m)-32.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 11.27 | ||
| P/S | 0.46 | ||
| P/FCF | N/A | ||
| P/OCF | 9.45 | ||
| P/B | 0.83 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)2.51
EY5.51%
EPS(NY)4.05
Fwd EY8.88%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)4.82
OCFY10.59%
SpS99.93
BVpS54.89
TBVpS48.64
PEG (NY)1.71
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 | 2.43 |
F-Score6
WACC8.08%
ROIC/WACC0.46
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 Year187.02%
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%