📊 SCL Key Takeaways
Is Stepan Co (SCL) a Good Investment?
While Stepan Co demonstrates 7% revenue growth, underlying fundamentals are weak with extremely low profitability margins (net margin 2.0%, operating margin 3.4%) and minimal free cash flow generation. Poor returns on equity (3.8%) and tight interest coverage (2.6x), combined with below-target quick ratio (0.84x), suggest the company operates in a commoditized business with limited financial flexibility.
Why Buy Stepan Co Stock? SCL Key Strengths
- Revenue growth of 7% YoY demonstrates market demand and top-line expansion
- Positive operating cash flow of $147.9M shows the core business generates cash
- Moderate leverage with Debt/Equity ratio of 0.50x provides financial flexibility
SCL Stock Risks: Stepan Co Investment Risks
- Extremely low profitability margins (2.0% net, 3.4% operating) indicate commodity-like competitive dynamics with limited pricing power
- Net income flat YoY despite 7% revenue growth signals margin compression from input cost inflation that cannot be passed to customers
- Minimal free cash flow ($25.4M) relative to high capex requirements and weak liquidity (quick ratio 0.84x) limit shareholder returns and financial flexibility
Key Metrics to Watch
- Gross margin trend - critical indicator of pricing power against input cost inflation
- Free cash flow and operating cash conversion - essential for assessing dividend sustainability
- Interest coverage ratio and quick ratio deterioration - early warning signs of financial stress
Stepan Co (SCL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.1% FCF margin may limit capital allocation flexibility.
SCL Profit Margin, ROE & Profitability Analysis
SCL vs Consumer Sector: How Stepan Co Compares
How Stepan Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stepan Co Stock Overvalued? SCL Valuation Analysis 2026
Based on fundamental analysis, Stepan Co has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stepan Co Balance Sheet: SCL Debt, Cash & Liquidity
SCL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stepan Co's revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $1.75 reflects profitable operations.
SCL Revenue Growth, EPS Growth & YoY Performance
SCL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $546.8M | $10.8M | $0.47 |
| Q2 2025 | $556.4M | $9.5M | $0.42 |
| Q1 2025 | $551.4M | $13.9M | $0.61 |
| Q3 2024 | $546.8M | $12.6M | $0.55 |
| Q2 2024 | $556.4M | $9.5M | $0.42 |
| Q1 2024 | $551.4M | $13.9M | $0.61 |
| Q3 2023 | $562.2M | $12.6M | $0.55 |
| Q2 2023 | $580.0M | $12.7M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stepan Co Dividends, Buybacks & Capital Allocation
SCL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stepan Co (CIK: 0000094049)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SCL
What is the AI rating for SCL?
Stepan Co (SCL) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCL's key strengths?
Claude: Revenue growth of 7% YoY demonstrates market demand and top-line expansion. Positive operating cash flow of $147.9M shows the core business generates cash.
What are the risks of investing in SCL?
Claude: Extremely low profitability margins (2.0% net, 3.4% operating) indicate commodity-like competitive dynamics with limited pricing power. Net income flat YoY despite 7% revenue growth signals margin compression from input cost inflation that cannot be passed to customers.
What is SCL's revenue and growth?
Stepan Co reported revenue of $2.3B.
Does SCL pay dividends?
Stepan Co pays dividends, with $35.0M distributed to shareholders in the trailing twelve months.
Where can I find SCL SEC filings?
Official SEC filings for Stepan Co (CIK: 0000094049) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCL's EPS?
Stepan Co has a diluted EPS of $2.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SCL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stepan Co has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SCL stock overvalued or undervalued?
Valuation metrics for SCL: ROE of 3.8% (sector avg: 18%), net margin of 2.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy SCL stock in 2026?
Our dual AI analysis gives Stepan Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SCL's free cash flow?
Stepan Co's operating cash flow is $147.9M, with capital expenditures of $122.5M. FCF margin is 1.1%.
How does SCL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.0% (avg: 8%), ROE 3.8% (avg: 18%), current ratio 1.29 (avg: 1.5).