SCL

StepanNYSE:SCL Stock Report

Market Cap

US$2.6b

7D

-1.1%

1Y

0.06%

Updated

16 Sep, 2021

Data

Company Financials +
SCL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends3/6

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.

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

SCLIndustryMarket
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 Year1.1%0.06%24.6%22.3%35.6%33.6%
3 Year30.7%26.5%37.5%17.1%60.9%51.0%
5 Year66.4%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

Stepan Fundamentals Summary

How do Stepan's earnings and revenue compare to its market cap?
SCL fundamental statistics
Market CapUS$2.56b
Earnings (TTM)US$147.41m
Revenue (TTM)US$2.09b

17.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCL income statement (TTM)
RevenueUS$2.09b
Cost of RevenueUS$1.68b
Gross ProfitUS$408.51m
ExpensesUS$261.10m
EarningsUS$147.41m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.42
Gross Margin19.52%
Net Profit Margin7.04%
Debt/Equity Ratio22.7%

How did SCL perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.