Stepan
Market Cap
US$2.6b
Last Updated
2020/10/21 23:32 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.9%
SCL
-1.2%
US Chemicals
-1.4%
US Market
1 Year Return
21.2%
SCL
9.1%
US Chemicals
17.8%
US Market
Return vs Industry: SCL exceeded the US Chemicals industry which returned 10.5% over the past year.
Return vs Market: SCL exceeded the US Market which returned 18.5% over the past year.
Shareholder returns
| SCL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | -1.2% | -1.4% |
| 30 Day | 6.0% | 2.7% | 4.7% |
| 90 Day | 6.4% | 4.9% | 8.2% |
| 1 Year | 22.6%21.2% | 11.6%9.1% | 20.5%17.8% |
| 3 Year | 52.3%47.3% | 14.4%-7.2% | 42.2%32.7% |
| 5 Year | 131.6%118.7% | 62.0%24.6% | 83.4%62.7% |
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
Has Stepan (NYSE:SCL) Got What It Takes To Become A Multi-Bagger?2 weeks ago | Simply Wall St
Calculating The Intrinsic Value Of Stepan Company (NYSE:SCL)4 weeks ago | Simply Wall St
Our View On Stepan's (NYSE:SCL) CEO PayValuation
Is Stepan undervalued compared to its fair value and its price relative to the market?
23.99x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCL ($115.99) is trading above our estimate of fair value ($89.81)
Significantly Below Fair Value: SCL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCL is good value based on its PE Ratio (24x) compared to the US Chemicals industry average (27.6x).
PE vs Market: SCL is poor value based on its PE Ratio (24x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SCL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SCL is overvalued based on its PB Ratio (2.9x) compared to the US Chemicals industry average (2.1x).
Next Steps
Future Growth
How is Stepan forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
5.6%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if SCL's forecast earnings growth is above the savings rate (2.2%).
Earnings vs Market: Insufficient data to determine if SCL's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SCL's revenue (5.6% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: SCL's revenue (5.6% 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
Next Steps
Past Performance
How has Stepan performed over the past 5 years?
7.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCL has high quality earnings.
Growing Profit Margin: SCL's current net profit margins (6.2%) are higher than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: SCL's earnings have grown by 7.1% per year over the past 5 years.
Accelerating Growth: SCL's earnings growth over the past year (10.1%) exceeds its 5-year average (7.1% per year).
Earnings vs Industry: SCL earnings growth over the past year (10.1%) exceeded the Chemicals industry -18.6%.
Return on Equity
High ROE: SCL's Return on Equity (12.4%) is considered low.
Next Steps
Financial Health
How is Stepan's financial position?
Financial Position Analysis
Short Term Liabilities: SCL's short term assets ($796.4M) exceed its short term liabilities ($319.2M).
Long Term Liabilities: SCL's short term assets ($796.4M) exceed its long term liabilities ($326.0M).
Debt to Equity History and Analysis
Debt Level: SCL's debt to equity ratio (23.1%) is considered satisfactory.
Reducing Debt: SCL's debt to equity ratio has reduced from 47.5% to 23.1% over the past 5 years.
Debt Coverage: SCL's debt is well covered by operating cash flow (95.3%).
Interest Coverage: SCL's interest payments on its debt are well covered by EBIT (28.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Stepan current dividend yield, its reliability and sustainability?
0.95%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCL's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: SCL's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (4.68%).
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 (22.2%), 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?
2.6yrs
Average management tenure
CEO
F. Stepan (59 yo)
14.75yrs
Tenure
US$4,697,426
Compensation
Mr. F. Quinn Stepan, Jr., has been the Chief Executive Officer of Stepan Company since January 1, 2006 and its President since February 1999. Mr. Stepan served as a Vice President and General Manager of Su ...
CEO Compensation Analysis
Compensation vs Market: F.'s total compensation ($USD4.70M) is about average for companies of similar size in the US market ($USD5.63M).
Compensation vs Earnings: F.'s compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.75yrs | US$4.70m | 3.19% $ 83.0m | |
| VP & CFO | 2.42yrs | US$1.27m | 0.023% $ 607.8k | |
| VP & Chief Technology and Sustainability Officer | 1.33yrs | no data | 0.0063% $ 164.3k | |
| VP & Chief Compliance Officer | 2.75yrs | no data | no data | |
| VP, General Counsel & Secretary | 1.25yrs | no data | 0.014% $ 359.0k | |
| Vice President of Sales | no data | no data | no data | |
| VP & Chief Human Resources Officer | 2.25yrs | no data | 0.013% $ 326.0k | |
| VP & Corporate Controller | 9.75yrs | US$492.25k | 0.045% $ 1.2m | |
| Consultant | 6.08yrs | US$1.19m | no data | |
| Assistant Secretary | no data | no data | no data |
2.6yrs
Average Tenure
57yo
Average Age
Experienced Management: SCL's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.75yrs | US$4.70m | 3.19% $ 83.0m | |
| Lead Independent Director | 3.83yrs | US$332.97k | 0.051% $ 1.3m | |
| Independent Director | 5yrs | US$214.95k | 0.030% $ 775.0k | |
| Independent Director | 14.5yrs | US$214.95k | 0.072% $ 1.9m | |
| Independent Director | 10.75yrs | US$214.95k | 0.068% $ 1.8m | |
| Independent Director | 9.75yrs | US$199.95k | 0.039% $ 1.0m | |
| Independent Director | 8.75yrs | US$199.95k | 0.048% $ 1.3m |
8.8yrs
Average Tenure
60yo
Average Age
Experienced Board: SCL's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCL insiders have sold more shares than they have bought 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$2.600b
- Shares outstanding: 22.41m
- Website: https://www.stepan.com
Number of Employees
Location
- Stepan Company
- 22 West Frontage Road
- Northfield
- Illinois
- 60093
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| 96S | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
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 | 2020/10/21 23:32 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.