| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
SCL Overview
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia.
Rewards
Risk Analysis
No risks detected for SCL from our risk checks.
Share Price & News
How has Stepan's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SCL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SCL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.1%
SCL
-0.7%
US Chemicals
-0.6%
US Market
1 Year Return
0.06%
SCL
22.3%
US Chemicals
33.6%
US Market
Return vs Industry: SCL underperformed the US Chemicals industry which returned 23% over the past year.
Return vs Market: SCL underperformed the US Market which returned 33.7% over the past year.
Shareholder returns
| SCL | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -0.7% | -0.6% |
| 30 Day | -1.3% | -1.7% | 1.3% |
| 90 Day | -7.4% | 1.7% | 5.3% |
| 1 Year | 1.1%0.06% | 24.6%22.3% | 35.6%33.6% |
| 3 Year | 30.7%26.5% | 37.5%17.1% | 60.9%51.0% |
| 5 Year | 66.4%57.7% | 95.3%57.8% | 123.4%99.1% |
Long-Term Price Volatility Vs. Market
How volatile is Stepan's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Returns On Capital At Stepan (NYSE:SCL) Have Hit The Brakes3 weeks ago | Simply Wall St
Here's What We Like About Stepan's (NYSE:SCL) Upcoming Dividend1 month ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Stepan Company's (NYSE:SCL) Shares?Stepan Fundamentals Summary
| SCL fundamental statistics | |
|---|---|
| Market Cap | US$2.56b |
| Earnings (TTM) | US$147.41m |
| Revenue (TTM) | US$2.09b |
17.4x
P/E Ratio1.2x
P/S RatioIs SCL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SCL income statement (TTM) | |
|---|---|
| Revenue | US$2.09b |
| Cost of Revenue | US$1.68b |
| Gross Profit | US$408.51m |
| Expenses | US$261.10m |
| Earnings | US$147.41m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.42 |
| Gross Margin | 19.52% |
| Net Profit Margin | 7.04% |
| Debt/Equity Ratio | 22.7% |
How did SCL perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield19%
Payout RatioValuation
Is Stepan undervalued compared to its fair value and its price relative to the market?
33.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCL ($114.01) is trading below our estimate of fair value ($170.3)
Significantly Below Fair Value: SCL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SCL is good value based on its PE Ratio (17.4x) compared to the US Chemicals industry average (22.8x).
PE vs Market: SCL is good value based on its PE Ratio (17.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: SCL is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: SCL is good value based on its PB Ratio (2.4x) compared to the US Chemicals industry average (2.7x).
Future Growth
How is Stepan forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
7.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCL's forecast earnings growth (7.2% per year) is above the savings rate (2%).
Earnings vs Market: SCL's earnings (7.2% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: SCL's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCL's revenue (4.2% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: SCL's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SCL's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Stepan performed over the past 5 years?
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCL has high quality earnings.
Growing Profit Margin: SCL's current net profit margins (7%) are higher than last year (6.2%).
Past Earnings Growth Analysis
Earnings Trend: SCL's earnings have grown by 8.8% per year over the past 5 years.
Accelerating Growth: SCL's earnings growth over the past year (32.6%) exceeds its 5-year average (8.8% per year).
Earnings vs Industry: SCL earnings growth over the past year (32.6%) underperformed the Chemicals industry 38.9%.
Return on Equity
High ROE: SCL's Return on Equity (14.1%) is considered low.
Financial Health
How is Stepan's financial position?
Financial Position Analysis
Short Term Liabilities: SCL's short term assets ($815.9M) exceed its short term liabilities ($464.5M).
Long Term Liabilities: SCL's short term assets ($815.9M) exceed its long term liabilities ($372.3M).
Debt to Equity History and Analysis
Debt Level: SCL's debt to equity ratio (22.7%) is considered satisfactory.
Reducing Debt: SCL's debt to equity ratio has reduced from 51.8% to 22.7% over the past 5 years.
Debt Coverage: SCL's debt is well covered by operating cash flow (84.3%).
Interest Coverage: SCL's interest payments on its debt are well covered by EBIT (30.6x coverage).
Balance Sheet
Dividend
What is Stepan current dividend yield, its reliability and sustainability?
1.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCL's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: SCL's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: SCL's dividends per share have been stable in the past 10 years.
Growing Dividend: SCL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.5%), SCL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
F. Stepan (60 yo)
15.67yrs
Tenure
US$6,330,645
Compensation
Mr. F. Quinn Stepan, Jr., has been the Chief Executive Officer of Stepan Company since January 1, 2006 and served as its President since February 1999 until January 01, 2021. Mr. Stepan served as a Vice Pr...
CEO Compensation Analysis
Compensation vs Market: F.'s total compensation ($USD6.33M) is about average for companies of similar size in the US market ($USD5.25M).
Compensation vs Earnings: F.'s compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: SCL's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: SCL's board of directors are considered experienced (7.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Stepan Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Stepan Company
- Ticker: SCL
- Exchange: NYSE
- Founded: 1932
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$2.561b
- Shares outstanding: 22.47m
- Website: https://www.stepan.com
Number of Employees
Location
- Stepan Company
- 22 West Frontage Road
- Northfield
- Illinois
- 60093
- United States
Listings
Biography
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and A...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/16 22:49 |
| End of Day Share Price | 2021/09/16 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.