📊 SCL Key Takeaways
Is Stepan Co (SCL) a Good Investment?
Stepan Co is operationally unprofitable with -8.2% operating margin and negative free cash flow of -$14M despite 7% revenue growth, indicating margin compression and operational deterioration. The company cannot cover interest expenses from operations (interest coverage: -1.6x) and faces acute liquidity stress with quick ratio of 0.86x, raising debt servicing and financial viability concerns.
Why Buy Stepan Co Stock? SCL Key Strengths
- Revenue growth of 7% YoY demonstrates market demand persistence
- Positive operating cash flow of $16.9M provides minimal operational buffer
- Moderate debt/equity ratio of 0.55x relative to asset base of $2.3B
SCL Stock Risks: Stepan Co Investment Risks
- Operating losses of -$49.6M on $604.5M revenue indicate severe margin compression with 10.7% gross margin insufficient to cover operating expenses
- Negative free cash flow of -$14M with FCF margin of -2.3% signals unsustainable cash burn trajectory
- Negative interest coverage ratio of -1.6x means operating income cannot service $651.7M long-term debt; refinancing risk elevated
- Quick ratio of 0.86x indicates inadequate liquid assets to cover short-term liabilities without inventory liquidation
- ROE of -3.5% and ROA of -1.8% demonstrate value destruction for equity and asset holders
Key Metrics to Watch
- Operating margin trend - must return to positive to restore viability
- Free cash flow progression - negative FCF unsustainable; path to positive FCF critical
- Interest coverage ratio - must improve to positive to ensure debt sustainability
- Gross margin stability - 10.7% is critically thin; monitor for further compression
- Liquidity metrics - track quick ratio and cash balance depletion rate against burn rate
Stepan Co (SCL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Stepan Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $593.3M | $19.7M | $0.86 |
| 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 |
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 STRONG SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCL's key strengths?
Claude: Revenue growth of 7% YoY demonstrates market demand persistence. Positive operating cash flow of $16.9M provides minimal operational buffer.
What are the risks of investing in SCL?
Claude: Operating losses of -$49.6M on $604.5M revenue indicate severe margin compression with 10.7% gross margin insufficient to cover operating expenses. Negative free cash flow of -$14M with FCF margin of -2.3% signals unsustainable cash burn trajectory.
What is SCL's revenue and growth?
Stepan Co reported revenue of $604.5M.
Does SCL pay dividends?
Stepan Co pays dividends, with $9.0M 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 $-1.81.
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 May 2026, Stepan Co has a STRONG SELL rating with 87% 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 -3.5% (sector avg: 18%), net margin of -6.8% (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 STRONG 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 $16.9M, with capital expenditures of $30.9M. FCF margin is -2.3%.
How does SCL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -6.8% (avg: 8%), ROE -3.5% (avg: 18%), current ratio 1.26 (avg: 1.5).