ScoreWhy is Stepan Co. ?
1
Poor long term growth as Operating profit has grown by an annual rate -11.47% of over the last 5 years
2
Negative results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 109.13 MM
- CASH AND EQV(HY) Lowest at USD 196.4 MM
- INTEREST(Q) Highest at USD 5.49 MM
3
With ROCE of 4.45%, it has a attractive valuation with a 1.15 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -38.95%, its profits have risen by 11% ; the PEG ratio of the company is 2.5
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -38.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Stepan Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Stepan Co.
-40.47%
-1.33
34.12%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.58%
EBIT Growth (5y)
-11.47%
EBIT to Interest (avg)
17.57
Debt to EBITDA (avg)
1.95
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
1.24
Tax Ratio
14.40%
Dividend Payout Ratio
68.74%
Pledged Shares
0
Institutional Holding
89.04%
ROCE (avg)
9.49%
ROE (avg)
9.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
1.23
EV to EBIT
25.96
EV to EBITDA
10.60
EV to Capital Employed
1.15
EV to Sales
0.92
PEG Ratio
2.53
Dividend Yield
2.32%
ROCE (Latest)
4.45%
ROE (Latest)
4.68%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NET SALES(Q)
Highest at USD 594.69 MM
-12What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 109.13 MM
CASH AND EQV(HY)
Lowest at USD 196.4 MM
INTEREST(Q)
Highest at USD 5.49 MM
Here's what is working for Stepan Co.
Net Sales
Highest at USD 594.69 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 31.29 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Stepan Co.
Interest
At USD 5.49 MM has Grown at 32.94%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 109.13 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 5.49 MM
in the last five periods and Increased by 32.94% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 196.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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