STEPAN CO (SCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCL - US8585861003 - Common Stock
44.13 USD
+1.48 (+3.47%)
44.13 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SCL. SCL was compared to 82 industry peers in the Chemicals industry. SCL has an average financial health and profitability rating. SCL has a correct valuation and a medium growth rate.
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.
SCL had positive earnings in each of the past 5 years.
In the past 5 years SCL always reported a positive cash flow from operatings.
1.2 Ratios
SCL's Return On Assets of 1.86% is in line compared to the rest of the industry. SCL outperforms 59.76% of its industry peers.
SCL's Return On Equity of 3.63% is fine compared to the rest of the industry. SCL outperforms 60.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.66%, SCL is in line with its industry, outperforming 53.66% of the companies in the same industry.
SCL had an Average Return On Invested Capital over the past 3 years of 5.63%. This is in line with the industry average of 6.13%.
| 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 Profit Margin of 1.96%. This is comparable to the rest of the industry: SCL outperforms 58.54% of its industry peers.
SCL's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.29%, SCL is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
SCL's Operating Margin has declined in the last couple of years.
SCL's Gross Margin of 11.94% is on the low side compared to the rest of the industry. SCL is outperformed by 79.27% of its industry peers.
In the last couple of years the Gross Margin of SCL has declined.
| 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.
The number of shares outstanding for SCL has been increased compared to 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
An Altman-Z score of 2.40 indicates that SCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.40, SCL is doing good in the industry, outperforming 78.05% 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 of 20.43. This is comparable to the rest of the industry: SCL outperforms 51.22% 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.
The Debt to Equity ratio of SCL (0.29) is better than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.45
WACC8.07%
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 82.93% 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: 79.27% of the companies in the same industry are doing better.
| 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 -18.67% in the last year.
SCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.51% yearly.
The Revenue has been growing slightly by 5.35% in the past 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
The Earnings Per Share is expected to grow by 30.51% 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 6.64% on average per year.
EPS Next Y1.69%
EPS Next 2Y30.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.06%
Revenue Next 2Y8.51%
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
Based on the Price/Earnings ratio of 22.52, the valuation of SCL can be described as rather expensive.
SCL's Price/Earnings is on the same level as the industry average.
SCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 11.78, which indicates a very decent valuation of SCL.
Based on the Price/Forward Earnings ratio, SCL is valued a bit cheaper than 65.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCL to the average of the S&P500 Index (34.46), we can say SCL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 11.78 |
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 71.95% of the companies listed in the same industry.
SCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.12 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SCL's earnings are expected to grow with 30.51% in the coming years.
PEG (NY)13.33
PEG (5Y)N/A
EPS Next 2Y30.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.70%, SCL has a reasonable but not impressive dividend return.
SCL's Dividend Yield is a higher than the industry average which is at 4.09.
Compared to an average S&P500 Dividend Yield of 2.42, SCL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
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 2Y30.51%
EPS Next 3YN/A
44.13
+1.48 (+3.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change1.36%
Ins Owners5.55%
Ins Owner Change3.87%
Market Cap998.22M
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (96.46%)
Short Float %1.92%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-8.09%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 11.78 | ||
| P/S | 0.43 | ||
| P/FCF | 31.12 | ||
| P/OCF | 6.39 | ||
| P/B | 0.8 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)1.96
EY4.44%
EPS(NY)3.75
Fwd EY8.49%
FCF(TTM)1.42
FCFY3.21%
OCF(TTM)6.9
OCFY15.65%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)13.33
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 | 2.4 |
F-Score5
WACC8.07%
ROIC/WACC0.45
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 Y1.69%
EPS Next 2Y30.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.35%
Revenue growth 3Y-2.41%
Revenue growth 5Y3.24%
Sales Q2Q%7.94%
Revenue Next Year8.06%
Revenue Next 2Y8.51%
Revenue Next 3Y8.56%
Revenue Next 5Y6.64%
EBIT growth 1Y6.39%
EBIT growth 3Y-26.03%
EBIT growth 5Y-11.52%
EBIT Next Year187.02%
EBIT Next 3YN/A
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 3 / 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 1.69% in the next year.
Can you provide the dividend sustainability for SCL stock?
The dividend rating of STEPAN CO (SCL) is 5 / 10 and the dividend payout ratio is 76.82%.