STEPAN CO (SCL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCL - US8585861003 - Common Stock
45.44 USD
+0.26 (+0.58%)
45.44 USD
0 (0%)
Taking everything into account, SCL scores 4 out of 10 in our fundamental rating. SCL was compared to 81 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.
Each year in the past 5 years SCL has been profitable.
Each year in the past 5 years SCL had a positive operating cash flow.
1.2 Ratios
SCL's Return On Assets of 1.86% is fine compared to the rest of the industry. SCL outperforms 60.49% of its industry peers.
Looking at the Return On Equity, with a value of 3.63%, SCL is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.66%, SCL is in line with its industry, outperforming 53.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCL is in line with the industry average of 6.15%.
| 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's Profit Margin of 1.96% is in line compared to the rest of the industry. SCL outperforms 59.26% of its industry peers.
In the last couple of years the Profit Margin of SCL has declined.
SCL's Operating Margin of 3.29% is on the low side compared to the rest of the industry. SCL is outperformed by 67.90% of its industry peers.
In the last couple of years the Operating Margin of SCL has declined.
The Gross Margin of SCL (11.94%) is worse than 80.25% of its industry peers.
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-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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCL is destroying value.
SCL has more shares outstanding than it did 1 year ago.
SCL has about the same amout of shares outstanding than it did 5 years ago.
SCL has a better debt/assets ratio than last year.
2.2 Solvency
SCL has an Altman-Z score of 2.42. 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 2.42. This is in the better half of the industry: SCL outperforms 79.01% 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.
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 has a Debt to Equity ratio of 0.29. This is amongst the best in the industry. SCL outperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 20.43 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.44
WACC8.31%
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 worse Current ratio (1.30) than 82.72% 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: 79.01% 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
SCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.67%.
SCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.51% yearly.
SCL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
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
Based on estimates for the next years, SCL will show a very strong growth in Earnings Per Share. The EPS will grow by 30.51% on average per year.
The Revenue is expected to grow by 6.64% on average over the next years.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.18, the valuation of SCL can be described as rather expensive.
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 26.15.
The Price/Forward Earnings ratio is 12.13, which indicates a correct valuation of SCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCL indicates a somewhat cheap valuation: SCL is cheaper than 65.43% of the companies listed in the same industry.
SCL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 12.13 |
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 71.60% of the companies listed in the same industry.
SCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 7.92 |
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)13.73
PEG (5Y)N/A
EPS Next 2Y30.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCL has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.88, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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.
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
45.44
+0.26 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners85.74%
Inst Owner Change1.41%
Ins Owners5.55%
Ins Owner Change3.87%
Market Cap1.03B
Revenue(TTM)2.30B
Net Income(TTM)45.24M
Analysts45
Price Target86.7 (90.8%)
Short Float %1.69%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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 | 23.18 | ||
| Fwd PE | 12.13 | ||
| P/S | 0.45 | ||
| P/FCF | 32.04 | ||
| P/OCF | 6.58 | ||
| P/B | 0.82 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)1.96
EY4.31%
EPS(NY)3.75
Fwd EY8.25%
FCF(TTM)1.42
FCFY3.12%
OCF(TTM)6.9
OCFY15.19%
SpS101.85
BVpS55.12
TBVpS48.93
PEG (NY)13.73
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 | 2.42 |
F-Score5
WACC8.31%
ROIC/WACC0.44
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 4 / 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 6 / 10 and the dividend payout ratio is 76.82%.