(SCL) Stepan - Overview
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 1.117m USD | Total Return: -2.1% in 12m
Avg Turnover: 6.51M
Qual. Beats: -2
Rev. Trend: -34.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Stepan Company (SCL) is a global manufacturer of specialty and intermediate chemicals, operating through three primary business segments: Surfactants, Polymers, and Specialty Products. The Surfactants division produces essential cleaning and disinfecting agents for consumer and industrial applications, while the Polymers segment supplies materials for rigid foam insulation and various coatings. The Specialty Products segment focuses on ingredients for the food, flavor, and pharmaceutical industries.
As a specialty chemical producer, Stepan operates in a sector characterized by high technical barriers to entry and complex global supply chains. The company utilizes a business-to-business model, supplying raw materials that serve as foundational components for finished goods in the construction, automotive, and personal care markets. Specialty chemical firms often benefit from long-term contracts and integrated customer relationships due to the specific formulations required for end-product performance.
For a detailed analysis of the companys financial health and valuation metrics, consider reviewing the comprehensive data available on ValueRay.
- Raw material volatility in palm oil and ethylene costs impacts surfactant margins
- Construction sector demand for rigid foam insulation drives polymer segment revenue
- Consumer shift toward concentrated liquid detergents influences surfactant volume growth
- Expansion of agricultural emulsifier sales provides high-margin growth in specialty chemicals
- Rising interest rates and global construction slowdowns pressure polyurethane polyol demand
| Net Income: -14.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -4.53 > 1.0 |
| NWC/Revenue: 7.93% < 20% (prev 7.10%; Δ 0.83% < -1%) |
| CFO/TA 0.07 > 3% & CFO 157.9m > Net Income -14.2m |
| Net Debt (621.6m) to EBITDA (205.2m): 3.03 < 3 |
| Current Ratio: 1.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (22.9m) vs 12m ago -0.01% < -2% |
| Gross Margin: 11.06% > 18% (prev 0.12%; Δ 1.09k% > 0.5%) |
| Asset Turnover: 99.23% > 50% (prev 92.99%; Δ 6.24% > 0%) |
| Interest Coverage Ratio: 3.28 > 6 (EBITDA TTM 205.2m / Interest Expense TTM 23.0m) |
| A: 0.08 (Total Current Assets 906.2m - Total Current Liabilities 720.5m) / Total Assets 2.33b |
| B: 0.53 (Retained Earnings 1.24b / Total Assets 2.33b) |
| C: 0.03 (EBIT TTM 75.5m / Avg Total Assets 2.36b) |
| D: 0.99 (Book Value of Equity 1.12b / Total Liabilities 1.14b) |
| Altman-Z'' = 3.50 = A |
| DSRI: 0.94 (Receivables 433.7m/436.5m, Revenue 2.34b/2.22b) |
| GMI: 1.13 (GM 11.06% / 12.48%) |
| AQI: 1.02 (AQ_t 0.09 / AQ_t-1 0.09) |
| SGI: 1.05 (Revenue 2.34b / 2.22b) |
| TATA: -0.07 (NI -14.2m - CFO 157.9m) / TA 2.33b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 51.40 with a total of 98,183 shares traded.
Over the past week, the price has changed by +5.85%,
over one month by +2.02%,
over three months by -1.97% and
over the past year by -2.12%.
Stepan has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold SCL.
- StrongBuy: 0
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 75 | 45.9% |
P/S = 0.4768
P/B = 1.0077
P/EG = 1.747
Revenue TTM = 2.34b USD
EBIT TTM = 75.5m USD
EBITDA TTM = 205.2m USD
Long Term Debt = 341.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 337.6m USD (from shortTermDebt, last quarter)
Debt = 762.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 49.3m
Net Debt = 621.6m USD (calculated: Debt 762.4m - CCE 140.8m)
Enterprise Value = 1.74b USD (1.12b + Debt 762.4m - CCE 140.8m)
Interest Coverage Ratio = 3.28 (Ebit TTM 75.5m / Interest Expense TTM 23.0m)
EV/FCF = -90.31x (Enterprise Value 1.74b / FCF TTM -19.3m)
FCF Yield = -1.11% (FCF TTM -19.3m / Enterprise Value 1.74b)
FCF Margin = -0.82% (FCF TTM -19.3m / Revenue TTM 2.34b)
Net Margin = -0.61% (Net Income TTM -14.2m / Revenue TTM 2.34b)
Gross Margin = 11.06% ((Revenue TTM 2.34b - Cost of Revenue TTM 2.08b) / Revenue TTM)
Gross Margin QoQ = 10.73% (prev 9.30%)
Tobins Q-Ratio = 0.75 (Enterprise Value 1.74b / Total Assets 2.33b)
Interest Expense / Debt = 3.02% (Interest Expense 23.0m / Debt 762.4m)
Taxrate = 21.72% (13.0m / 59.9m)
NOPAT = 59.1m (EBIT 75.5m * (1 - 21.72%))
Current Ratio = 1.26 (Total Current Assets 906.2m / Total Current Liabilities 720.5m)
Debt / Equity = 0.64 (Debt 762.4m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = 3.03 (Net Debt 621.6m / EBITDA 205.2m)
Debt / FCF = -32.28 (negative FCF - burning cash) (Net Debt 621.6m / FCF TTM -19.3m)
Total Stockholder Equity = 1.23b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.60% (Net Income -14.2m / Total Assets 2.33b)
RoE = -1.15% (Net Income TTM -14.2m / Total Stockholder Equity 1.23b)
RoCE = 4.80% (EBIT 75.5m / Capital Employed (Equity 1.23b + L.T.Debt 341.0m))
RoIC = 3.03% (NOPAT 59.1m / Invested Capital 1.95b)
WACC = 6.46% (E(1.12b)/V(1.88b) * Re(9.26%) + D(762.4m)/V(1.88b) * Rd(3.02%) * (1-Tc(0.22)))
Discount Rate = 9.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -35.96 | Cagr: 0.18%
[DCF] Fair Price = unknown (Cash Flow -19.3m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -2
Revenue Correlation: -34.93 | Revenue CAGR: -1.87% | SUE: -0.34 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.61 | Chg30d=-11.59% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.93 | Chg30d=-11.00% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=2.54 | Chg30d=-10.27% | Revisions=-20% | GrowthEPS=+39.3% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=3.92 | Chg30d=-6.12% | Revisions=+0% | GrowthEPS=+54.4% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: -20%