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
Flawless balance sheet with solid track record.
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.
7 Day Return
1 Year Return
Return vs Industry: SCL underperformed the US Chemicals industry which returned 43.9% over the past year.
Return vs Market: SCL underperformed the US Market which returned 39.7% over the past year.
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
2 days ago | Simply Wall StCould The Market Be Wrong About Stepan Company (NYSE:SCL) Given Its Attractive Financial Prospects?
2 weeks ago | Simply Wall StCalculating The Intrinsic Value Of Stepan Company (NYSE:SCL)
3 weeks ago | Simply Wall StThere's A Lot To Like About Stepan's (NYSE:SCL) Upcoming US$0.30 Dividend
Is Stepan undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCL ($130) is trading below our estimate of fair value ($153.49)
Significantly Below Fair Value: SCL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SCL is good value based on its PE Ratio (21.3x) compared to the US Chemicals industry average (28.1x).
PE vs Market: SCL is poor value based on its PE Ratio (21.3x) compared to the US market (19.6x).
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 overvalued based on its PB Ratio (2.9x) compared to the US Chemicals industry average (2.7x).
How is Stepan forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCL's forecast earnings growth (8.7% per year) is above the savings rate (2%).
Earnings vs Market: SCL's earnings (8.7% per year) are forecast to grow slower than the US market (15.6% 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 (9.3% 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
How has Stepan performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCL has high quality earnings.
Growing Profit Margin: SCL's current net profit margins (7.1%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: SCL's earnings have grown by 7.8% per year over the past 5 years.
Accelerating Growth: SCL's earnings growth over the past year (32.3%) exceeds its 5-year average (7.8% per year).
Earnings vs Industry: SCL earnings growth over the past year (32.3%) exceeded the Chemicals industry 1.6%.
Return on Equity
High ROE: SCL's Return on Equity (14%) is considered low.
How is Stepan's financial position?
Financial Position Analysis
Short Term Liabilities: SCL's short term assets ($797.7M) exceed its short term liabilities ($464.1M).
Long Term Liabilities: SCL's short term assets ($797.7M) exceed its long term liabilities ($359.9M).
Debt to Equity History and Analysis
Debt Level: SCL's debt to equity ratio (24.7%) is considered satisfactory.
Reducing Debt: SCL's debt to equity ratio has reduced from 54.9% to 24.7% over the past 5 years.
Debt Coverage: SCL's debt is well covered by operating cash flow (92.6%).
Interest Coverage: SCL's interest payments on its debt are well covered by EBIT (31.4x coverage).
What is Stepan current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCL's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: SCL's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.36%).
Stability and Growth of Payments
Stable Dividend: SCL's dividends per share have been stable in the past 10 years.
Growing Dividend: SCL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (19%), SCL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
F. Stepan (59 yo)
Mr. F. Quinn Stepan, Jr., has been the Chief Executive Officer of Stepan Company since January 1, 2006 and served as its President since February 1999 until January 01, 2021. Mr. Stepan served as a Vice Pr...
CEO Compensation Analysis
Compensation vs Market: F.'s total compensation ($USD6.33M) is about average for companies of similar size in the US market ($USD5.24M).
Compensation vs Earnings: F.'s compensation has increased by more than 20% in the past year.
Experienced Management: SCL's management team is considered experienced (3 years average tenure).
Experienced Board: SCL's board of directors are considered experienced (7.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Stepan Company's company bio, employee growth, exchange listings and data sources
- Name: Stepan Company
- Ticker: SCL
- Exchange: NYSE
- Founded: 1932
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$2.818b
- Shares outstanding: 22.52m
- Website: https://www.stepan.com
Number of Employees
- Stepan Company
- 22 West Frontage Road
- United States
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||2021/06/18 02:29|
|End of Day Share Price||2021/06/17 00:00|
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.