SCL's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 734.23 -- higher than 95.42% of US-listed equities with positive expected earnings growth.
SCL's went public 28.62 years ago, making it older than 80.33% of listed US stocks we're tracking.
The volatility of Stepan Co's share price is greater than that of only 11.05% 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 IRBT, ULBI, VIVO, CTS, and SPRT.
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 51th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 23.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Stepan Co ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 29.85 -- which is good for besting 92.4% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than merely 20.34% of the free cash flow producing stocks we're observing.
SCL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 39.46% 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 SVM, NRP, CMP, AVD, and MLM.
Stepan Company (SCL) is one of those rare companies that benefited from the coronavirus pandemic. Since it's a chemical company at its core, it was perfectly positioned to reap the benefits of increased demand for cleaning products. In my view, such a demand increase will persist for the foreseeable future,...
Stepan (SCL) declares $0.275/share quarterly dividend, in line with previous.Forward yield 1.09%Payable Sept. 15; for shareholders of record Aug. 31; ex-div Aug. 28.See SCL Dividend Scorecard, Yield Chart, & Dividend Growth....
Good morning, and thank you for joining the Stepan Company's second quarter 2020 financial review. Despite the challenges of the pandemic and the impact of the first quarter power outage at our Millsdale facility, Stepan had a solid first half of the year.