Stepan Company

Stepan Company

SCLยทNYSE

$51.61

-0.12%
Basic MaterialsChemicals - Specialty

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used as principal ingredients in consumer and industrial cleaning 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. Its surfactants are also used in various applications, including emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered products, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. It serves in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.

At a Glance

Live Snapshot
Market Cap$1.17B
EPS2.0500
P/E Ratio23.10
Earnings Date07/29/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 23.1).

Valuation inputs: P/E 23.1, earnings yield +4.3%, momentum -0.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +3.8%, ROIC +2.7%).

Profitability stack: net margin +2.0%, ROE +3.8%, ROIC +2.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +47.2%, momentum -0.1%, net margin +2.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

scl

Stepan Company Market vs Earnings Trajectory

SCL ยท NYSE

Loading price and EPS data...

Stepan Company

Stepan Company Fair Value Envelope

SCL ยท NYSE

Our analysis suggests that SCL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $51.61, this represents a potential HIDDEN relative to our calculated worth for Stepan Company.

Intrinsic Value
Current Price: $51.61
3Y-68.0%
5Y-63.0%
10Y-46.0%
3Y-16.0%
5Y+25.0%
10Y+32.0%
3Y-68.0%
5Y-63.0%
10Y-46.0%
3Y-8.0%
5Y-37.0%
10Y-30.0%
3Y-118.0%
5Y-77.0%
10Y-77.0%
3Y-3.0%
5Y+35.0%
10Y+74.0%
Stepan Company

Stepan Company Profit Bridge

SCL ยท NYSE
Revenue2.33B
Cost of Goods Sold (2.06B)
Gross Profit269.89M
Operating Expenses (200.51M)
Operating Income69.38M
Interest Expense (26.23M)
Other Income/Expense-9.48M
Pretax Income59.90M
Income Tax (13.01M)
Net Income46.90M
Net Income
46.90M

Profitability Analysis

Gross Margin

11.6%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

3.0%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

2.0%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

21.7%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

11.57%
Gross Profit Margin
-7%
3Y-25.0%
5Y-44.0%
10Y-40.0%
2.98%
Operating Profit Margin
-8%
3Y-60.0%
5Y-68.0%
10Y-58.0%
2.01%
Net Profit Margin
-13%
3Y-62.0%
5Y-70.0%
10Y-59.0%
3.77%
Return on Equity
-12%
3Y-70.0%
5Y-71.0%
10Y-72.0%
1.99%
Return on Assets
-9%
3Y-67.0%
5Y-73.0%
10Y-69.0%
2.73%
Return on Invested Capital
-10%
3Y-68.0%
5Y-71.0%
10Y-69.0%
SCL

Stepan Company Cash Conversion Engine

SCL ยท NYSE
Net Income46.90M
Depreciation & Amortization126.04M
Stock-Based Compensation2.15M
Change in Working Capital-22.04M
Others-3.78M
Capital Expenditures-122.51M
Free Cash Flow25.37M

Cash Flow Quality Analysis

FCF Conversion Rate

54.1%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

82.8%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

-35.4%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$22.04M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.

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Stepan Company Funding & Solvency Profile

SCL ยท NYSE
Cash & Cash Equivalents0.00
Net Receivables0.00
Inventory0.00
Other Current Assets906.24M
Total Current Assets906 M
Property, Plant & Equipment1.15B
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets278.94M
Total Non-Current Assets1 B
Total Assets
2.33B

Financial Health Analysis

Current Ratio

1.26x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.96x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

186 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

39% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Stepan Company Street Expectations Map

SCL ยท NYSE

Wall Street analysts project that SCL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 75.00, with estimates ranging from a low of 75.00 to a high of 75.00.

Lowest Target
75.00
45.32%
Consensus Target
75.00
45.32%
Highest Target
75.00
45.32%

The consensus 1-year price target stands at 75.00, with estimates ranging from a low of 75.00 to a high of 75.00.

Analyst Consensus Analysis

Upside Potential

+45.3%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Stepan Company Insider Positioning

SCL ยท NYSE

During the last 12 months, insiders have purchased $71K and sold $502K worth of SCL shares, resulting in $431K of net selling activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

1.6K

70.68K

Sold

0

0.00

Net Activity

+71K

+$71K

9-12 Months

Bought

0

0.00

Sold

10.0K

501.57K

Net Activity

-502K

-$502K

Top Buyers

1
BAJ

Barry Andrea Jean

Officer: Vp & Chro

1.6K sharesโ€ข1 transactions

$71K

Top Sellers

1
SFQJ

Stepan F Quinn Jr

Director

10.0K sharesโ€ข2 transactions

$502K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $431K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.14:1

Weak buy/sell ratio. Selling significantly exceeds buyingโ€”monitor for potential fundamental concerns.

Insider Participation

Balanced

1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.

0.79%
Dividend Yield
-4%
3Y+127.0%
5Y+236.0%
10Y+153.0%
ย 

scl Dividend History

SCL
10Y CAGR +8%
Latest $0.395
Annual $1.57
5 year growth trend
Last Period: +0%