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 -36.20%, 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 -36.20% 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.
-0.55%
-1.24
34.43%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.52%
EBIT Growth (5y)
-16.79%
EBIT to Interest (avg)
17.57
Debt to EBITDA (avg)
1.95
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
1.20
Tax Ratio
14.40%
Dividend Payout Ratio
75.66%
Pledged Shares
0
Institutional Holding
91.96%
ROCE (avg)
9.49%
ROE (avg)
9.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.07
EV to EBIT
26.77
EV to EBITDA
9.46
EV to Capital Employed
1.05
EV to Sales
0.79
PEG Ratio
5.11
Dividend Yield
2.63%
ROCE (Latest)
3.93%
ROE (Latest)
4.27%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 47.97 %
INVENTORY TURNOVER RATIO(HY)
Highest at 6.97 times
DEBTORS TURNOVER RATIO(HY)
Highest at 5.39 times
DIVIDEND PER SHARE(HY)
Highest at USD 5.39
NET SALES(Q)
Highest at USD 604.51 MM
NET PROFIT(Q)
Highest at USD 24.03 MM
-10What is not working for the Company
INTEREST(9M)
At USD 17.52 MM has Grown at 39.27%
ROCE(HY)
Lowest at -1.19%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 16.98% (YoY
PRE-TAX PROFIT(Q)
Lowest at USD 10.95 MM
EPS(Q)
Lowest at USD -1.81
Here's what is working for Stepan Co.
Net Profit
At USD 24.03 MM has Grown at 80.9%
over average net sales of the previous four periods of USD 13.28 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 604.51 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 24.03 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Debt-Equity Ratio
Lowest at 47.97 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 6.97 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 5.39 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at USD 5.39
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Depreciation
Highest at USD 32.95 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.
Pre-Tax Profit
At USD 10.95 MM has Fallen at -33.79%
over average net sales of the previous four periods of USD 16.54 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Interest
At USD 17.52 MM has Grown at 39.27%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 10.95 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
EPS
Lowest at USD -1.81
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 16.98% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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