Stepan Co (SCL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-130.4%

-$21.83

vs $71.83 price

Levered DCF

-$70.11

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.05

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.1×	29.28×	53.42×	16.48×	20.68×	21.62×	22.92×	15.1×
P/B	0.87×	1.27×	1.77×	2.08×	2.65×	2.78×	2.65×	2.17×
P/S	0.46×	0.68×	0.93×	0.87×	1.21×	1.46×	1.27×	0.85×
EV / EBITDA	7.74×	10.75×	16.12×	9.82×	11.5×	10.13×	10.67×	7.25×
Gross margin	11.6%	12.5%	11.9%	15.4%	16.9%	20.5%	18.3%	17.1%
Operating margin	3.0%	3.2%	2.5%	7.5%	7.3%	9.2%	6.8%	7.6%
Net margin	2.0%	2.3%	1.7%	5.3%	5.9%	6.8%	5.5%	5.7%
Current ratio	1.29×	1.21×	1.4×	1.56×	1.82×	2.17×	2.41×	2.37×
Debt / equity	0.56×	0.58×	0.59×	0.55×	0.39×	0.25×	0.29×	0.35×
Interest coverage	2.65×	3.62×	3.68×	19.04×	24.37×	22.63×	10.92×	12.02×
Dividend yield	3.2%	2.3%	1.5%	1.3%	1.0%	0.9%	1.0%	1.2%
Payout ratio	74.7%	67.4%	81.8%	20.8%	20.4%	20.0%	22.4%	18.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.8%	4.3%	3.3%	12.6%	12.8%	12.8%	11.6%	14.4%
Return on invested capital	2.7%	3.0%	2.4%	8.5%	8.5%	9.3%	8.2%	10.3%
Return on assets	2.0%	2.2%	1.7%	6.0%	6.7%	7.2%	6.5%	7.6%
Free cash flow yield	2.3%	2.7%	-4.0%	-5.8%	-4.3%	4.0%	4.8%	5.0%
Earnings yield	4.3%	3.4%	1.9%	6.1%	4.8%	4.6%	4.4%	6.6%
Enterprise value	$1.6B	$2.1B	$2.7B	$2.9B	$3.1B	$2.6B	$2.3B	$1.7B
Net debt / EBITDA	2.63×	3.04×	3.43×	1.58×	0.97×	-0.38×	-0.25×	-0.1×
Cash conversion cycle (days)	67	71	72	62	62	54	57	50