STEPAN CO (SCL) Stock Fundamental Analysis
NYSE:SCL • US8585861003
51.33 USD
+0.79 (+1.56%)
At close: Feb 26, 2026
51.33 USD
0 (0%)
After Hours: 2/26/2026, 8:04:00 PM
SCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and financial health of SCL have multiple concerns. SCL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SCL was profitable.
- SCL had a positive operating cash flow in the past year.
- Each year in the past 5 years SCL has been profitable.
- SCL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.86%, SCL is in line with its industry, outperforming 59.04% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.63%, SCL is in the better half of the industry, outperforming 60.24% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.55%, SCL is in line with its industry, outperforming 51.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROIC | 3.55% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SCL has a Profit Margin of 1.96%. This is comparable to the rest of the industry: SCL outperforms 59.04% of its industry peers.
- SCL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 3.29%, SCL is doing worse than 62.65% of the companies in the same industry.
- SCL's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 11.94%, SCL is not doing good in the industry: 79.52% of the companies in the same industry are doing better.
- 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-26.77%
OM growth 5Y-20.39%
PM growth 3Y-27.63%
PM growth 5Y-21.58%
GM growth 3Y-9.08%
GM growth 5Y-10.82%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCL is destroying value.
- There is no outstanding debt for SCL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SCL's Altman-Z score of 2.48 is fine compared to the rest of the industry. SCL outperforms 67.47% of its industry peers.
- 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's Debt to FCF ratio of 20.43 is in line compared to the rest of the industry. SCL outperforms 48.19% of its industry peers.
- SCL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.29, SCL is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.31
WACC11.47%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that SCL should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.30, SCL is not doing good in the industry: 84.34% of the companies in the same industry are doing better.
- A Quick Ratio of 0.84 indicates that SCL may have some problems paying its short term obligations.
- SCL has a worse Quick ratio (0.84) than 77.11% 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 -17.27%.
- The earnings per share for SCL have been decreasing by -20.33% on average. This is quite bad
- SCL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.96%.
- The Revenue has been growing slightly by 4.52% on average over the past years.
EPS 1Y (TTM)-17.27%
EPS 3Y-35.11%
EPS 5Y-20.33%
EPS Q2Q%-116.67%
Revenue 1Y (TTM)6.96%
Revenue growth 3Y-5.61%
Revenue growth 5Y4.52%
Sales Q2Q%5.38%
3.2 Future
- The Earnings Per Share is expected to grow by 60.47% 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 5.88% on average per year.
EPS Next Y95.06%
EPS Next 2Y60.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.14%
Revenue Next 2Y6.39%
Revenue Next 3Y7.13%
Revenue Next 5Y5.88%
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.
- 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 quite expensively with a Price/Earnings ratio of 28.20.
- The rest of the industry has a similar Price/Earnings ratio as SCL.
- The average S&P500 Price/Earnings ratio is at 27.21. SCL is around the same levels.
- A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of SCL.
- 67.47% of the companies in the same industry are more expensive than SCL, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 28.13. SCL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
- 73.49% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.2 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SCL's earnings are expected to grow with 60.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y60.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SCL has a Yearly Dividend Yield of 3.13%.
- SCL's Dividend Yield is a higher than the industry average which is at 2.21.
- SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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
5.3 Sustainability
- 76.82% of the earnings are spent on dividend by SCL. 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 2Y60.47%
EPS Next 3YN/A
51.33
+0.79 (+1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-23 2026-02-23/bmo
Earnings (Next)04-27 2026-04-27
Inst Owners86.79%
Inst Owner Change-2.09%
Ins Owners5.55%
Ins Owner Change5.11%
Market Cap1.16B
Revenue(TTM)2.33B
Net Income(TTM)45.24M
Analysts80
Price Target76.5 (49.04%)
Short Float %1.62%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.51
Dividend Growth(5Y)8.06%
DP76.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-02 2026-03-02 (0.395)
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)-11.76%
PT rev (3m)-11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 14.46 | ||
| P/S | 0.5 | ||
| P/FCF | 36.2 | ||
| P/OCF | 7.43 | ||
| P/B | 0.93 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)1.82
EY3.55%
EPS(NY)3.55
Fwd EY6.92%
FCF(TTM)1.42
FCFY2.76%
OCF(TTM)6.9
OCFY13.45%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)0.3
PEG (5Y)N/A
Graham Number47.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.63% | ||
| ROCE | 4.4% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.18% | ||
| OM | 3.29% | ||
| PM (TTM) | 1.96% | ||
| GM | 11.94% | ||
| FCFM | 1.39% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-26.77%
OM growth 5Y-20.39%
PM growth 3Y-27.63%
PM growth 5Y-21.58%
GM growth 3Y-9.08%
GM growth 5Y-10.82%
F-Score4
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 | 2.48 |
F-Score4
WACC11.47%
ROIC/WACC0.31
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.27%
EPS 3Y-35.11%
EPS 5Y-20.33%
EPS Q2Q%-116.67%
EPS Next Y95.06%
EPS Next 2Y60.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.96%
Revenue growth 3Y-5.61%
Revenue growth 5Y4.52%
Sales Q2Q%5.38%
Revenue Next Year8.14%
Revenue Next 2Y6.39%
Revenue Next 3Y7.13%
Revenue Next 5Y5.88%
EBIT growth 1Y6.39%
EBIT growth 3Y-30.88%
EBIT growth 5Y-16.79%
EBIT Next Year199.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.03%
OCF growth 3YN/A
OCF growth 5YN/A
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 5 / 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 3 / 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%.