STEPAN CO (SCL) Stock Fundamental Analysis
NYSE:SCL • US8585861003
50.89 USD
-0.44 (-0.86%)
At close: Feb 27, 2026
50.89 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overall SCL gets a fundamental rating of 4 out of 10. We evaluated SCL against 83 industry peers in the Chemicals industry. Both the profitability and financial health of SCL have multiple concerns. 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.
- In the past 5 years SCL has always been profitable.
- SCL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of SCL (1.86%) is comparable to the rest of the industry.
- SCL's Return On Equity of 3.63% is fine compared to the rest of the industry. SCL outperforms 60.24% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.55%, SCL is in line with its industry, outperforming 53.01% 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
- The Profit Margin of SCL (1.96%) is comparable to the rest of the industry.
- 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 61.45% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCL has declined.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- Looking at the Altman-Z score, with a value of 2.48, SCL is in the better half of the industry, outperforming 67.47% 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.
- The Debt to FCF ratio of SCL (20.43) is comparable to the rest of the industry.
- SCL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- SCL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. SCL outperforms 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.31
WACC11.4%
2.3 Liquidity
- SCL has a Current Ratio of 1.30. This is a normal value and indicates that SCL is financially healthy and should not expect problems in meeting its short term obligations.
- SCL has a Current ratio of 1.30. This is amonst the worse of the industry: SCL underperforms 83.13% of its industry peers.
- 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.
- SCL's Quick ratio of 0.84 is on the low side compared to the rest of the industry. SCL is outperformed by 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The earnings per share for SCL have decreased strongly by -17.27% 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 -20.33% on average per year.
- The Revenue has been growing slightly by 6.96% in the past year.
- 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
- SCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.88% yearly.
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
- 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
- A Price/Earnings ratio of 27.96 indicates a quite expensive valuation of 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 (27.07), we can say SCL is valued inline with the index average.
- The Price/Forward Earnings ratio is 14.33, which indicates a correct valuation of SCL.
- Based on the Price/Forward Earnings ratio, SCL is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, SCL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
- SCL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCL is cheaper than 74.70% of the companies in the same industry.
- SCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.89 | ||
| EV/EBITDA | 8.54 |
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)0.29
PEG (5Y)N/A
EPS Next 2Y60.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.08%, SCL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.19, SCL pays a bit more dividend than its industry peers.
- SCL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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.
- The dividend of SCL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.82%
EPS Next 2Y60.47%
EPS Next 3YN/A
50.89
-0.44 (-0.86%)
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 Cap1.15B
Revenue(TTM)2.33B
Net Income(TTM)45.24M
Analysts80
Price Target76.5 (50.32%)
Short Float %1.62%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)-5.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 14.33 | ||
| P/S | 0.5 | ||
| P/FCF | 35.89 | ||
| P/OCF | 7.37 | ||
| P/B | 0.92 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)1.82
EY3.58%
EPS(NY)3.55
Fwd EY6.98%
FCF(TTM)1.42
FCFY2.79%
OCF(TTM)6.9
OCFY13.57%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)0.29
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
WACC11.4%
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%.