# Stepan Company (SCL) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Basic Materials / Chemicals. Price $68.66, market value $1.6 billion.

## Valuation
- **P/E (trailing): 361.4×** (5-yr avg 27.2×, 3-yr avg 33.9×). Stepan Company trades at 361.4× trailing earnings, well above its own five-year average of 27.2×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 18.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.6×**. Each dollar of revenue is priced at 0.6×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.8×**. Enterprise value is 13.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 2.3%** (5-yr avg -2.0%). Free cash flow equals 2.3% of the market value, above its five-year average of -2.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 0.3%**. The inverse of the P/E: 0.3% of the price is earned each year.

## Profitability
- **Gross margin: 11.8%**. Stepan Company keeps 11.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 0.8%**. 0.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.0%**. 2.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.8%**. 3.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 0.9%**. Return on all capital, debt included, is 0.9%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -0.1%**. Each dollar of assets produces -0.1% of profit.

## Growth
- **Revenue growth (1 yr): 7.0%** (3-yr -5.6%/yr, 5-yr 4.5%/yr). Revenue grew 7.0% over the last year, against 4.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -6.8%** (3-yr -31.5%/yr, 5-yr -17.8%/yr). Earnings per share fell 6.8%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.50**. Debt is 0.50 times equity, moderate leverage.
- **Net debt / EBITDA: 3.3×**. It would take 3.3 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Current ratio: 1.29** (quick 1.29). Current assets cover the next year's liabilities 1.29 times.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.36%** ($1.58 per share, trailing). Stepan Company yields 2.36%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 75%** (97% of free cash flow). 75% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 6.5%/yr** (1-yr 2.6%). The dividend has grown 6.5% a year over five years.

## Price and momentum
- **Total return (1 yr): 66.1%** (YTD 50.7%, 3-mo 10.9%). The shares are up 66.1% over twelve months including dividends.
- **From 52-week high: -5.5%** (64.2% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 78**. An RSI of 78 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.63** (volatility 36%). Beta of 0.63 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SCL · Page: https://foliofundamentals.com/stocks/scl

Not investment advice.