SCL Valuation

Stepan Co

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49.440

+0.09(0.182%)1D

Overview
Forecast
Valuation
Earnings

SCL Relative Valuation

SCL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SCL is overvalued; if below, it's undervalued.

Historical Valuation

Stepan Co (SCL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.18 is considered Undervalued compared with the five-year average of 22.50. The fair price of Stepan Co (SCL) is between 56.55 to 99.70 according to relative valuation methord. Compared to the current price of 49.35 USD , Stepan Co is Undervalued By 12.74%.

Relative Value

Fair Zone

56.55-99.70

Current Price：49.35

12.74%

Undervalued

15.18

Trailing

Forward

6.90

EV/EBITDA

Stepan Co. (SCL) has a current EV/EBITDA of 6.90. The 5-year average EV/EBITDA is 9.68. The thresholds are as follows: Strongly Undervalued below 6.02, Undervalued between 6.02 and 7.85, Fairly Valued between 11.52 and 7.85, Overvalued between 11.52 and 13.35, and Strongly Overvalued above 13.35. The current Forward EV/EBITDA of 6.90 falls within the Undervalued range.

14.31

EV/EBIT

Stepan Co. (SCL) has a current EV/EBIT of 14.31. The 5-year average EV/EBIT is 17.51. The thresholds are as follows: Strongly Undervalued below 5.29, Undervalued between 5.29 and 11.40, Fairly Valued between 23.62 and 11.40, Overvalued between 23.62 and 29.74, and Strongly Overvalued above 29.74. The current Forward EV/EBIT of 14.31 falls within the Historic Trend Line -Fairly Valued range.

0.46

Stepan Co. (SCL) has a current PS of 0.46. The 5-year average PS is 0.91. The thresholds are as follows: Strongly Undervalued below 0.43, Undervalued between 0.43 and 0.67, Fairly Valued between 1.15 and 0.67, Overvalued between 1.15 and 1.39, and Strongly Overvalued above 1.39. The current Forward PS of 0.46 falls within the Undervalued range.

0.00

P/OCF

Stepan Co. (SCL) has a current P/OCF of 0.00. The 5-year average P/OCF is 8.31. The thresholds are as follows: Strongly Undervalued below -2.02, Undervalued between -2.02 and 3.15, Fairly Valued between 13.48 and 3.15, Overvalued between 13.48 and 18.64, and Strongly Overvalued above 18.64. The current Forward P/OCF of 0.00 falls within the Undervalued range.

8.55

P/FCF

Stepan Co. (SCL) has a current P/FCF of 8.55. The 5-year average P/FCF is -26.56. The thresholds are as follows: Strongly Undervalued below -422.21, Undervalued between -422.21 and -224.39, Fairly Valued between 171.26 and -224.39, Overvalued between 171.26 and 369.09, and Strongly Overvalued above 369.09. The current Forward P/FCF of 8.55 falls within the Historic Trend Line -Fairly Valued range.

Stepan Co (SCL) has a current Price-to-Book (P/B) ratio of 0.90. Compared to its 3-year average P/B ratio of 1.56 , the current P/B ratio is approximately -42.56% higher. Relative to its 5-year average P/B ratio of 1.97, the current P/B ratio is about -54.30% higher. Stepan Co (SCL) has a Forward Free Cash Flow (FCF) yield of approximately -1.06%. Compared to its 3-year average FCF yield of -2.95%, the current FCF yield is approximately -63.88% lower. Relative to its 5-year average FCF yield of -1.88% , the current FCF yield is about -43.30% lower.

0.90

P/B

Median3y

1.56

Median5y

1.97

-1.06

FCF Yield

Median3y

-2.95

Median5y

-1.88

Competitors Valuation Multiple

The average P/S ratio for SCL's competitors is 1.24, providing a benchmark for relative valuation. Stepan Co Corp (SCL) exhibits a P/S ratio of 0.46, which is -62.57% above the industry average. Given its robust revenue growth of 6.88%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

REX American Resources Corp

Compass Minerals International Inc

0.62

5.77%

792.92M

Performance Decomposition

Market capitalization of SCL decreased by 36.43% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.71 to 1.91.

The secondary factor is the Revenue Growth, contributed 6.88%to the performance.

Overall, the performance of SCL in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.88%

556.41M → 594.69M

Revenue Growth

11.70%

1.71 → 1.91

Margin Expansion

-55.01%

43.21 → 19.44

P/E Change

-36.43%