Stepan Company (SCL) AI Stock Analysis

Founded in 1932, Stepan Company manufactures specialty and intermediate chemicals across three core segments: Surfactants, Polymers, and Specialty Products. Its Surfactants segment produces chemicals used in consumer and industrial cleaning products like detergents, shampoos, and disinfectants, as well as agricultural and industrial applications. The Polymers segment supplies polyurethane polyols for rigid foam insulation, foundational materials for coatings, adhesives, sealants, elastomers, polyester resins, and phthalic anhydride. Its Specialty Products segment provides flavors, emulsifiers, and solubilizers for food, nutritional supplements, and pharmaceuticals. Stepan operates globally, serving markets across the United States, Europe, and Latin America.

Stepan Company grew revenue from $2.35B in FY2021 to a peak of $2.77B in FY2022, before sales declined 16.1% to $2.33B in FY2023 and fell 6.3% to $2.18B in FY2024. In FY2025, revenue rebounded 7.0% to $2.33B, delivering a 5-year revenue CAGR of 4.5% from FY2020 to FY2025. Annual net income fell from $137.8M in FY2021 and $147.2M in FY2022 to $46.9M in FY2025, with net margin narrowing from 5.9% to 2.0%. For the trailing twelve months, revenue reached $2.43B with an operating margin of 6.2% and EPS of -$0.12. In the latest quarter ended June 30, 2026, quarterly revenue grew 15.0% year-over-year, and quarterly earnings grew 101.6%.

As of June 30, 2026, Stepan Company held $113.7M in cash and short-term investments against total debt of $707.3M, resulting in net debt of $593.6M. Total assets stood at $2.39B and shareholders' equity was $1.21B, reflecting a debt-to-equity ratio of 0.58 and a current ratio of 1.15. In FY2025, the company generated operating cash flow of $147.9M and free cash flow of $25.4M. Capital expenditures totaled $122.5M, while dividends paid used $35.0M and share issuance generated $104,000.

Stepan Company holds a market cap of $1.41B and an enterprise value of $2.04B. The stock trades at a forward P/E of 17.5x, above the 13.4x median of its US-listed Basic Materials peers. Its price-to-sales ratio of 0.6x and EV-to-EBITDA of 9.0x compare to sector peer medians of 1.8x and 10.5x, respectively. The stock carries a PEG ratio of 1.75 and a price-to-book ratio of 1.2x. Over the past year, SCL returned 38.3%, outpacing the S&P 500's 16.8% return, though its 5-year return of -42.6% trails the S&P 500's 83.0% gain.

Stepan Company pays a quarterly dividend with an annual forward dividend of $1.58, representing a dividend yield of 2.55% as of October 16, 2026. The company has paid consecutive dividends for 42 years and delivered an annualized 5-year dividend growth rate of 6.5%. Its payout ratio is 75.6%, and the most recent ex-dividend date was September 1, 2026.

Wall Street coverage includes 1 Strong Buy rating, with 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $85.00, representing 37.0% upside versus the last close of $62.03. For the fiscal year ending December 31, 2026, analysts estimate revenue of $2.53B and EPS of $2.69, representing 47.8% EPS growth. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is October 28, 2026.

This page is an AI-written research summary of Stepan Company (SCL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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