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Stepan Company (SCL) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Stepan Company

SCLMarket cap $1.39BPrice $61.3

Country🇺🇸United States

SectorMaterials

IndustryChemicals

Manufactures surfactants and specialty chemicals that make soaps foam, food emulsify, and crops absorb nutrients better. Nearly every shampoo, detergent, and agricultural spray you've used likely contains an ingredient this century-old chemical maker quietly produced.

In Bastion Portfolios?

52W Return+37%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-6%2

Revenue Forecast

Rev CAGR (1y)+9%6

Rev CAGR (3y)+6%5

Rev CAGR (5y)+5%5

Earnings Forecast

EPS Growth Y+1+32%9

EPS Growth Y+2+37%9

EPS Growth Y+3-6%3

Quality

Margins

EBIT Margin3%2

Net Income Margin-0%2

Free Cash Flow Margin2%3

Debt

Net Debt/EBITDA2.54

Efficiency

ROE-0%2

ROA-0%2

Earnings Stability55

GEAR+WEAK18

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)204

P/E Ratio (Forward 3y)184

P/BV1.29

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd302

Yield

Free Cash Flow Yield2.6%4

Dividend Yield2.6%6

Momentum

Short term

1 month return-1%7

3 month return+12%9

YTD return+32%9

Mid term

Price vs 52wHigh92%9

1 year return+30%8

Long term

3 year return-5%3

5 year return-43%2

Risk Shield

Price Risk

Beta1.04

Volatility38%5

Free Cash Flow

Free Cash Flow Margin2%3

Free Cash Flow Yield2.6%4

Quality

ROCE5%3

Earnings Stability55

Net Debt/EBITDA2.54

02Growth

Is it actually growing, and how fast?

SCLStepan

Revenue FY25$2.3B

GROWTH RATING↗

AVERAGE46 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-6%2

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+32%9

EPS growth, FY27E+37%9

EPS growth, FY28E-6%3

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 6%/yr from here.

WATCH

A mid-pack grower, ahead of 46% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 5%/yr, about average versus companies worldwide.5/10

WEAKNESSES

Revenue fell 6%/yr over the last 3 years, behind 80% of companies worldwide.2/10

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return+12%9

YTD return+32%9

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return+30%8

3-year return-5%3

5-year return-43%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 30% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%), over three months (+12%) and so far this year (+32%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-4.7% over three years and -43% over five), behind 70% of the market.

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Stepan Company. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

SCLStepan

Revenue FY25$2.3B

GROWTH RATING↗

AVERAGE46 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-6%2

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+32%9

EPS growth, FY27E+37%9

EPS growth, FY28E-6%3

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 6%/yr from here.

WATCH

A mid-pack grower, ahead of 46% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 5%/yr, about average versus companies worldwide.5/10

WEAKNESSES

Revenue fell 6%/yr over the last 3 years, behind 80% of companies worldwide.2/10

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return+12%9

YTD return+32%9

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return+30%8

3-year return-5%3

5-year return-43%2

MOMENTUM ASSESSMENT

STRENGTHS

It's up 30% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-1%), over three months (+12%) and so far this year (+32%).

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-4.7% over three years and -43% over five), behind 70% of the market.

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on Stepan Company. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community