STEPAN CO (SCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCL - US8585861003 - Common Stock
51.2 USD
+0.04 (+0.08%)
51.2 USD
0 (0%)
SCL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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.
- SCL had a positive operating cash flow in the past year.
- SCL had positive earnings in each of the past 5 years.
- SCL had a positive operating cash flow in each 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 has a better Return On Equity (3.63%) than 60.98% of its industry peers.
- The Return On Invested Capital of SCL (3.66%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for SCL is in line with the industry average of 6.10%.
| 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
- 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.
- SCL has a worse Operating Margin (3.29%) than 67.07% of its industry peers.
- In the last couple of years the Operating Margin of SCL has declined.
- SCL has a Gross Margin of 11.94%. This is amonst the worse of the industry: SCL underperforms 80.49% 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.
- Compared to 5 years ago, SCL has about the same amount of shares outstanding.
- The debt/assets ratio for SCL has been reduced compared to a year ago.
2.2 Solvency
- SCL has an Altman-Z score of 2.48. 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.
- SCL has a Altman-Z score of 2.48. This is in the better half of the industry: SCL outperforms 68.29% 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.
- SCL has a Debt to FCF ratio (20.43) which is in line with its industry peers.
- A Debt/Equity ratio of 0.29 indicates that SCL is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.29, SCL is doing good in the industry, outperforming 79.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.32
WACC11.55%
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.
- SCL's Quick ratio of 0.84 is on the low side compared to the rest of the industry. SCL is outperformed by 79.27% 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%.
- Measured over the past years, SCL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.51% on average per year.
- Looking at the last year, SCL shows a small growth in Revenue. The Revenue has grown by 5.35% in the last 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)-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
- SCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.67% yearly.
- 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 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.
- 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
- The Price/Earnings ratio is 26.12, which means the current valuation is very expensive for SCL.
- Compared to the rest of the industry, the Price/Earnings ratio of SCL is on the same level as its industry peers.
- SCL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.33.
- A Price/Forward Earnings ratio of 14.42 indicates a correct valuation of SCL.
- SCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCL is cheaper than 65.85% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. SCL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
- 71.95% of the companies in the same industry are more expensive than SCL, based on the Enterprise Value to EBITDA ratio.
- SCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.11 | ||
| EV/EBITDA | 8.58 |
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)8.52
PEG (5Y)N/A
EPS Next 2Y27.03%
EPS Next 3Y28.67%
5. Dividend
5.1 Amount
- SCL has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.34, 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 1.91.
| 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 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
- 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 2Y27.03%
EPS Next 3Y28.67%
51.2
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-17 2026-02-17/amc
Inst Owners86.79%
Inst Owner Change0.13%
Ins Owners5.55%
Ins Owner Change4.45%
Market Cap1.16B
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (69.34%)
Short Float %1.66%
Short Ratio1.93
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-DateN/A
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)-8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 14.42 | ||
| P/S | 0.5 | ||
| P/FCF | 36.11 | ||
| P/OCF | 7.42 | ||
| P/B | 0.93 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)1.96
EY3.83%
EPS(NY)3.55
Fwd EY6.93%
FCF(TTM)1.42
FCFY2.77%
OCF(TTM)6.9
OCFY13.49%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)8.52
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 | 2.48 |
F-Score5
WACC11.55%
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.
Can you provide the valuation status for STEPAN CO?
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.
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%.