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Stepan NYSE:SCL Stock Report

Last Price

US$68.33

Market Cap

US$1.6b

7D

-9.5%

1Y

-26.0%

Updated

18 Dec, 2024

Data

Company Financials +

Stepan Company

NYSE:SCL Stock Report

Market Cap: US$1.6b

SCL Stock Overview

Produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. More details

SCL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends4/6

Rewards

Trading at 53.4% below our estimate of its fair value

Earnings are forecast to grow 52.48% per year

Risk Analysis

Dividend of 2.25% is not well covered by free cash flows

Has a high level of debt


My Notes

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Community Narratives

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WA
Analyst Price Target
Consensus Narrative from 1 Analyst

New CEO And Texas Plant Will Expand Chemical Production In 2025

Key Takeaways New CEO Luis Rojo may drive strategic execution and improve revenue and earnings with focused leadership. Growth in the Surfactant and polymer segments, cost reductions, and increased production capacity could enhance margins and revenue.
View narrative
US$97.00
FV
29.6% undervalued intrinsic discount
6.29%
Revenue growth p.a.
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2users have followed this narrative
Updated narrative

Stepan Company Competitors

Minerals Technologies

NYSE:MTX

US$2.5b

Quaker Chemical

NYSE:KWR

US$2.6b

Chase

NYSEAM:CCF

US$1.2b

Ecovyst

NYSE:ECVT

US$876.2m

Price History & Performance

Summary of share price highs, lows and changes for Stepan
Historical stock prices
Current Share PriceUS$68.33
52 Week HighUS$96.68
52 Week LowUS$69.78
Beta0.81
1 Month Change-9.21%
3 Month Change-11.84%
1 Year Change-25.99%
3 Year Change-42.87%
5 Year Change-31.70%
Change since IPO12,621.81%

Recent News & Updates

These 4 Measures Indicate That Stepan (NYSE:SCL) Is Using Debt Extensively

Nov 26
These 4 Measures Indicate That Stepan (NYSE:SCL) Is Using Debt Extensively

Stepan's (NYSE:SCL) Upcoming Dividend Will Be Larger Than Last Year's

Nov 02
Stepan's (NYSE:SCL) Upcoming Dividend Will Be Larger Than Last Year's

Recent updates

These 4 Measures Indicate That Stepan (NYSE:SCL) Is Using Debt Extensively

Nov 26
These 4 Measures Indicate That Stepan (NYSE:SCL) Is Using Debt Extensively

Stepan's (NYSE:SCL) Upcoming Dividend Will Be Larger Than Last Year's

Nov 02
Stepan's (NYSE:SCL) Upcoming Dividend Will Be Larger Than Last Year's

Stepan Company: Not A Great Performance, But Good Value

Oct 30

Some Investors May Be Worried About Stepan's (NYSE:SCL) Returns On Capital

Aug 30
Some Investors May Be Worried About Stepan's (NYSE:SCL) Returns On Capital

Stepan (NYSE:SCL) Takes On Some Risk With Its Use Of Debt

Aug 17
Stepan (NYSE:SCL) Takes On Some Risk With Its Use Of Debt

Stepan Company Is Making Great Progress

Jul 28

When Should You Buy Stepan Company (NYSE:SCL)?

Jul 24
When Should You Buy Stepan Company (NYSE:SCL)?

There Are Reasons To Feel Uneasy About Stepan's (NYSE:SCL) Returns On Capital

May 29
There Are Reasons To Feel Uneasy About Stepan's (NYSE:SCL) Returns On Capital

Stepan Company's (NYSE:SCL) Price In Tune With Earnings

Apr 05
Stepan Company's (NYSE:SCL) Price In Tune With Earnings

Is There Now An Opportunity In Stepan Company (NYSE:SCL)?

Mar 22
Is There Now An Opportunity In Stepan Company (NYSE:SCL)?

Is Stepan (NYSE:SCL) Using Too Much Debt?

Feb 18
Is Stepan (NYSE:SCL) Using Too Much Debt?

Stepan Company: It's Wise To Remain Cautious

Feb 17

With Stepan Company (NYSE:SCL) It Looks Like You'll Get What You Pay For

Jan 04
With Stepan Company (NYSE:SCL) It Looks Like You'll Get What You Pay For

Capital Allocation Trends At Stepan (NYSE:SCL) Aren't Ideal

Dec 17
Capital Allocation Trends At Stepan (NYSE:SCL) Aren't Ideal

Are Investors Undervaluing Stepan Company (NYSE:SCL) By 27%?

Dec 05
Are Investors Undervaluing Stepan Company (NYSE:SCL) By 27%?

Stepan Company: An Unfortunate Development Resulting In An Upside

Dec 03

When Should You Buy Stepan Company (NYSE:SCL)?

Oct 16
When Should You Buy Stepan Company (NYSE:SCL)?

Stepan Company: Don't Try To Catch The Falling Knife, Still Potentially Overvalued

Sep 17

Stepan (NYSE:SCL) Has A Somewhat Strained Balance Sheet

Aug 31
Stepan (NYSE:SCL) Has A Somewhat Strained Balance Sheet

Stepan's Shares Are Reaching Even More Appealing Prices

Aug 28

Are Investors Undervaluing Stepan Company (NYSE:SCL) By 31%?

Jul 18
Are Investors Undervaluing Stepan Company (NYSE:SCL) By 31%?

Investors Could Be Concerned With Stepan's (NYSE:SCL) Returns On Capital

Jul 06
Investors Could Be Concerned With Stepan's (NYSE:SCL) Returns On Capital

Stepan Company: A Downward Revision Is Warranted

Jun 09

Is Stepan (NYSE:SCL) Using Too Much Debt?

May 23
Is Stepan (NYSE:SCL) Using Too Much Debt?

At US$92.20, Is Stepan Company (NYSE:SCL) Worth Looking At Closely?

May 01
At US$92.20, Is Stepan Company (NYSE:SCL) Worth Looking At Closely?

Stepan (NYSE:SCL) Ticks All The Boxes When It Comes To Earnings Growth

Mar 25
Stepan (NYSE:SCL) Ticks All The Boxes When It Comes To Earnings Growth

Returns On Capital At Stepan (NYSE:SCL) Have Stalled

Mar 08
Returns On Capital At Stepan (NYSE:SCL) Have Stalled

Stepan Q4 2022 Earnings Preview

Feb 15

Here's Why Stepan (NYSE:SCL) Can Manage Its Debt Responsibly

Feb 02
Here's Why Stepan (NYSE:SCL) Can Manage Its Debt Responsibly

Shareholder Returns

SCLUS ChemicalsUS Market
7D-9.5%-3.0%0.1%
1Y-26.0%-0.09%26.1%

Return vs Industry: SCL underperformed the US Chemicals industry which returned -0.1% over the past year.

Return vs Market: SCL underperformed the US Market which returned 26.1% over the past year.

Price Volatility

Is SCL's price volatile compared to industry and market?
SCL volatility
SCL Average Weekly Movement4.0%
Chemicals Industry Average Movement5.4%
Market Average Movement6.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.1%

Stable Share Price: SCL has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: SCL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19322,389Luis Rojowww.stepan.com

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.

Stepan Company Fundamentals Summary

How do Stepan's earnings and revenue compare to its market cap?
SCL fundamental statistics
Market capUS$1.61b
Earnings (TTM)US$45.83m
Revenue (TTM)US$2.19b

33.5x

P/E Ratio

0.7x

P/S Ratio

Is SCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SCL income statement (TTM)
RevenueUS$2.19b
Cost of RevenueUS$1.90b
Gross ProfitUS$281.92m
Other ExpensesUS$236.10m
EarningsUS$45.83m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)2.04
Gross Margin12.89%
Net Profit Margin2.10%
Debt/Equity Ratio56.5%

How did SCL perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

75%

Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 22:56
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Stepan Company is covered by 6 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David SilverCL King & Associates, Inc.
Michael HarrisonSeaport Research Partners
Daniel RizzoSidoti & Company, LLC