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 hold?
- Overall Portfolio exposure to Stepan Co. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Stepan Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Stepan Co.
32.18%
-1.24
34.43%
S&P 500
22.36%
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 Trend21What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,288.56
RAW MATERIAL COST(Y)
Fallen by -22.72% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 0 %
DIVIDEND PER SHARE(HY)
Highest at USD 0
NET SALES(Q)
Highest at USD 684.11 MM
OPERATING PROFIT(Q)
Highest at USD 73.22 MM
OPERATING PROFIT MARGIN(Q)
Highest at 10.7 %
PRE-TAX PROFIT(Q)
Highest at USD 36.32 MM
NET PROFIT(Q)
Highest at USD 25.57 MM
EPS(Q)
Highest at USD 1
-7What is not working for the Company
ROCE(HY)
Lowest at -0.22%
INTEREST(Q)
At USD 5.68 MM has Grown at 13.39%
CASH AND EQV(HY)
Lowest at USD 140.78 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
Here's what is working for Stepan Co.
Pre-Tax Profit
At USD 36.32 MM has Grown at 177.07%
over average net sales of the previous four periods of USD 13.11 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Interest Coverage Ratio
Highest at 1,288.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 684.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 684.11 MM has Grown at 16.77%
over average net sales of the previous four periods of USD 585.84 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 73.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 10.7 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 36.32 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 25.57 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 25.57 MM has Grown at 77.97%
over average net sales of the previous four periods of USD 14.37 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 0 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 0
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -22.72% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Stepan Co.
Interest
At USD 5.68 MM has Grown at 13.39%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 140.78 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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