Stepan (SCL): Assessing Valuation After a Year of Share Price Declines

Stepan (SCL) has been on the radar for some investors after recent trading showed small movements in its share price. While the action is not dramatic, it has sparked discussion about the company’s current valuation, especially in light of its recent results.

See our latest analysis for Stepan.

Stepan’s share price has slipped over the past year, closing recently at $47.1 after a 1-year total shareholder return of -36.55% and a 5-year total return of -55.96%. This steady decline suggests investors remain cautious, even though there have been some brighter spots in annual revenue and net income.

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With Stepan’s shares hovering at multi-year lows, investors are left to wonder if the current price offers a compelling entry point or if the market is already factoring in any potential for future recovery and growth.

Most Popular Narrative: 42.7% Undervalued

Compared to Stepan’s last close price of $47.10, the most widely followed narrative sees a much higher fair value. This points to a notable valuation gap and prompts a closer look at the specific drivers fueling this optimistic forecast.

The startup of the new Pasadena, Texas site is expected to reach full contribution in the second half of 2025. This could boost volume growth and supply chain savings and is likely to impact revenue and margins positively.

Read the complete narrative.

Curious about what powers this bullish story? The main catalysts involve a sharp swing in future earnings potential and transformation across key business lines. The real surprise is which underlying forecasted numbers make this valuation possible. Want to see what could propel Stepan beyond today’s price floor? The answers are inside.

Result: Fair Value of $82.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent high interest rates and negative free cash flow could challenge Stepan’s turnaround and potentially delay improvements in profitability or revenue growth.

Find out about the key risks to this Stepan narrative.

Build Your Own Stepan Narrative

If you want to dig into the numbers yourself or take a different perspective, you can shape your own view and narrative in just a few minutes, Do it your way

A great starting point for your Stepan research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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