SCL's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 165.91 -- higher than 80.62% of US-listed equities with positive expected earnings growth.
SCL's went public 28.87 years ago, making it older than 80.42% of listed US stocks we're tracking.
The volatility of Stepan Co's share price is greater than that of only 22.1% US stocks with at least 200 days of trading history.
Stocks that are quantitatively similar to SCL, based on their financial statements, market capitalization, and price volatility, are CTS, AMOT, ULBI, VIVO, and IRBT.
SCL's SEC filings can be seen here. And to visit Stepan Co's official web site, go to www.stepan.com.
Stepan Chemical is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning compounds. The Company is also a leading supplier of Polyurethane polyols used in the expanding thermal insulation market, and C.A.S.E. (Coatings, Adhesives, Sealants, and Elastomers) industries. The company was founded in 1932 and is based in Northfield, Illinois.
SCL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Stepan Co. To summarize, we found that Stepan Co ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 65.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SCL, they are:
Interest coverage, a measure of earnings relative to interest payments, is 31.7 -- which is good for besting 91.95% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately only 22.39% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SCL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 38.31% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SCL, try HGLD, ZEUS, OC, AXTA, and CMP.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out […]