Stepan Company Stock Buy Hold or Sell Recommendation
| SCL Stock | USD 76.09 0.07 0.09% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Stepan Company is 'Hold'. The recommendation algorithm takes into account all of Stepan's available fundamental, technical, and predictive indicators you will find on this site.
Check out Stepan Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Stepan and provide practical buy, sell, or hold advice based on investors' constraints. Stepan Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Stepan |
Execute Stepan Buy or Sell Advice
The Stepan recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Stepan Company. Macroaxis does not own or have any residual interests in Stepan Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Stepan's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Stepan Trading Alerts and Improvement Suggestions
| Stepan Company generated a negative expected return over the last 90 days | |
| Stepan Company has a strong financial position based on the latest SEC filings | |
| Over 85.0% of the company shares are owned by institutional investors | |
| Latest headline from suredividend.com: Insider Trading |
Stepan Returns Distribution Density
The distribution of Stepan's historical returns is an attempt to chart the uncertainty of Stepan's future price movements. The chart of the probability distribution of Stepan daily returns describes the distribution of returns around its average expected value. We use Stepan Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Stepan returns is essential to provide solid investment advice for Stepan.
| Mean Return | -0.01 | Value At Risk | -2.72 | Potential Upside | 2.04 | Standard Deviation | 1.78 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Stepan historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Stepan Stock Institutional Investors
| Shares | Charles Schwab Investment Management Inc | 2024-09-30 | 374.2 K | Bank Of New York Mellon Corp | 2024-06-30 | 325.4 K | Southernsun Asset Management, Llc | 2024-09-30 | 309.4 K | Nfj Investment Group, Llc | 2024-06-30 | 259.9 K | Northern Trust Corp | 2024-09-30 | 249 K | Cresset Asset Management, Llc | 2024-09-30 | 175.1 K | Gotham Asset Management, Llc | 2024-09-30 | 170.2 K | Allspring Global Investments Holdings, Llc | 2024-06-30 | 128.5 K | Bank Of America Corp | 2024-06-30 | 126.4 K | Blackrock Inc | 2024-06-30 | 3.3 M | Vanguard Group Inc | 2024-09-30 | 2.5 M |
Stepan Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 28.5M | (15.4M) | (79.3M) | (99.4M) | 144.8M | 152.1M | |
| Change In Cash | 15.2M | 34.6M | (190.8M) | 14.6M | (43.9M) | (41.7M) | |
| Free Cash Flow | 112.9M | 109.4M | (122.3M) | (140.8M) | (85.5M) | (81.2M) | |
| Depreciation | 78.7M | 81.9M | 90.9M | 94.7M | 105.3M | 55.9M | |
| Other Non Cash Items | 13.4M | 9.9M | 6.8M | 1.5M | 7.2M | 3.9M | |
| Dividends Paid | 23.1M | 25.4M | 28.1M | 30.6M | 32.9M | 34.5M | |
| Capital Expenditures | 105.6M | 125.8M | 194.5M | 301.6M | 260.3M | 273.4M | |
| Net Income | 103.1M | 127.7M | 137.9M | 147.2M | 40.2M | 54.0M | |
| End Period Cash Flow | 315.4M | 349.9M | 159.2M | 173.8M | 129.8M | 92.6M | |
| Investments | (112.7M) | (139.0M) | (376.8M) | (308.1M) | (308.1M) | (292.7M) | |
| Change Receivables | 5.2M | 4.9M | (23.4M) | (104.2M) | (93.8M) | (89.1M) | |
| Net Borrowings | (53.9M) | (23.6M) | 165.0M | 223.7M | 257.2M | 270.1M | |
| Change To Netincome | 2.1M | 5.5M | (22.0M) | (12.1M) | (10.9M) | (10.3M) |
Stepan Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Stepan or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Stepan's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Stepan stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.23 | |
β | Beta against Dow Jones | 1.69 | |
σ | Overall volatility | 1.81 | |
Ir | Information ratio | -0.08 |
Stepan Volatility Alert
Stepan Company exhibits very low volatility with skewness of 1.83 and kurtosis of 9.28. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stepan's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stepan's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Stepan Fundamentals Vs Peers
Comparing Stepan's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Stepan's direct or indirect competition across all of the common fundamentals between Stepan and the related equities. This way, we can detect undervalued stocks with similar characteristics as Stepan or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Stepan's fundamental indicators could also be used in its relative valuation, which is a method of valuing Stepan by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Stepan to competition |
| Fundamentals | Stepan | Peer Average |
| Return On Equity | 0.0378 | -0.31 |
| Return On Asset | 0.0188 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 2.31 B | 16.62 B |
| Shares Outstanding | 22.49 M | 571.82 M |
| Shares Owned By Insiders | 3.75 % | 10.09 % |
| Shares Owned By Institutions | 84.92 % | 39.21 % |
| Number Of Shares Shorted | 308.47 K | 4.71 M |
| Price To Earning | 18.38 X | 28.72 X |
| Price To Book | 1.40 X | 9.51 X |
| Price To Sales | 0.78 X | 11.42 X |
| Revenue | 2.33 B | 9.43 B |
| Gross Profit | 427.07 M | 27.38 B |
| EBITDA | 177.99 M | 3.9 B |
| Net Income | 40.2 M | 570.98 M |
| Cash And Equivalents | 173.75 M | 2.7 B |
| Cash Per Share | 7.28 X | 5.01 X |
| Total Debt | 725.9 M | 5.32 B |
| Debt To Equity | 0.50 % | 48.70 % |
| Current Ratio | 1.78 X | 2.16 X |
| Book Value Per Share | 54.21 X | 1.93 K |
| Cash Flow From Operations | 174.88 M | 971.22 M |
| Short Ratio | 3.15 X | 4.00 X |
| Earnings Per Share | 2.00 X | 3.12 X |
| Price To Earnings To Growth | 4.34 X | 4.89 X |
| Target Price | 97.0 | |
| Number Of Employees | 2.39 K | 18.84 K |
| Beta | 0.81 | -0.15 |
| Market Capitalization | 1.71 B | 19.03 B |
| Total Asset | 2.36 B | 29.47 B |
| Retained Earnings | 1.26 B | 9.33 B |
| Working Capital | 244.01 M | 1.48 B |
Note: Insider Trading [view details]
Stepan Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Stepan . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Stepan Buy or Sell Advice
When is the right time to buy or sell Stepan Company? Buying financial instruments such as Stepan Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Stepan in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Cannabis Thematic Idea Now
Cannabis
Equities that are involved in production and delivery of legal cannabis. This theme is designed for investors that are willing to accept higher levels of market risk inherited by cannabis production and distribution globally. The Cannabis theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cannabis Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Stepan Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Stepan. If investors know Stepan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Stepan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.873 | Dividend Share 1.5 | Earnings Share 2 | Revenue Per Share 95.823 | Quarterly Revenue Growth (0.03) |
The market value of Stepan Company is measured differently than its book value, which is the value of Stepan that is recorded on the company's balance sheet. Investors also form their own opinion of Stepan's value that differs from its market value or its book value, called intrinsic value, which is Stepan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stepan's market value can be influenced by many factors that don't directly affect Stepan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Stepan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stepan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stepan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.