Is Stepan Stock a Good Investment?

Stepan Investment Advice

SCL

To provide specific investment advice or recommendations on Stepan Company stock, we recommend investors consider the following general factors when evaluating Stepan Company. This will help you to make an informed decision on whether to include Stepan in one of your diversified portfolios:

Examine Stepan's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Stepan's leadership team and their track record. Good management can help Stepan navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Stepan's business and its evolving consumer preferences.
Compare Stepan's performance and market position to its competitors. Analyze how Stepan is positioned in terms of product offerings, innovation, and market share.
Check if Stepan pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Stepan's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Stepan Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Stepan Company is a good investment.

Sell

Buy

Hold

Macroaxis provides unbiased trade recommendation on Stepan Company that should be used to complement current analysts and expert consensus on Stepan Company. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Stepan Company is not overpriced, please validate all Stepan fundamentals, including its total debt, market capitalization, and the relationship between the gross profit and short ratio . Given that Stepan Company has a price to earning of 18.38 X, we advise you to double-check Stepan Company market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Stepan Stock

Researching Stepan's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.2. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Stepan Company last dividend was issued on the 3rd of March 2025. The entity had 2:1 split on the 17th of December 2012.

To determine if Stepan is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Stepan's research are outlined below:

	Stepan Company generated a negative expected return over the last 90 days
	Over 86.0% of the company shares are owned by institutional investors
	Latest headline from kalkinemedia.com: Insider Trading

Stepan Quarterly Liabilities And Stockholders Equity

2.3 Billion

Stepan uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Stepan Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Stepan's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	15th of February 2024 Upcoming Quarterly Report	View
	23rd of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	15th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Stepan's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Stepan's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2009-02-10	2008-12-31	0.07	0.08	0.01	14
2002-02-13	2001-12-31	0.17	0.19	0.02	11
1993-10-22	1993-09-30	0.17	0.15	-0.02	11
2024-02-20	2023-12-31	0.37	0.33	-0.04	10
2008-10-22	2008-09-30	0.31	0.27	-0.04	12
2001-10-24	2001-09-30	0.26	0.22	-0.04	15
2001-04-24	2001-03-31	0.12	0.18	0.06	50
2011-02-08	2010-12-31	0.58	0.51	-0.07	12

Stepan Target Price Consensus

Stepan target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Stepan's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Buy

Most Stepan analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Stepan stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Stepan Company, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Stepan Target Price Projection

Stepan's current and average target prices are 63.37 and 97.00, respectively. The current price of Stepan is the price at which Stepan Company is currently trading. On the other hand, Stepan's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Stepan Market Quote on 25th of February 2025

Low Price	62.85	Odds
High Price	64.21	Odds

63.37 Target Price

Analyst Consensus On Stepan Target Price

Low Estimate	88.27	Odds
High Estimate	107.67	Odds

97.0

Historical

Lowest Forecast 88.27

Target Price 97.0

Highest Forecast 107.67

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Stepan Company and the information provided on this page.

Stepan Analyst Ratings

Stepan's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Stepan stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Stepan's financials, market performance, and future outlook by experienced professionals. Stepan's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Stepan's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Stepan is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Stepan Company backward and forwards among themselves. Stepan's institutional investor refers to the entity that pools money to purchase Stepan's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Charles Schwab Investment Management Inc	2024-12-31	403.4 K
Southernsun Asset Management, Llc	2024-12-31	383.7 K
Bank Of New York Mellon Corp	2024-12-31	321.4 K
Jpmorgan Chase & Co	2024-09-30	285.6 K
Northern Trust Corp	2024-12-31	277.4 K
Cresset Asset Management, Llc	2024-12-31	199.7 K
Gotham Asset Management, Llc	2024-09-30	170.2 K
Acadian Asset Management Llc	2024-12-31	161.6 K
Amvescap Plc.	2024-12-31	145.8 K
Blackrock Inc	2024-12-31	3.3 M
Vanguard Group Inc	2024-12-31	2.6 M

Note, although Stepan's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Stepan's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 1.41 B.

Market Cap

604.59 Million

Stepan's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.02	0.02
Return On Capital Employed	0.04	0.04
Return On Assets	0.02	0.01
Return On Equity	0.04	0.04

The company has Net Profit Margin of 0.02 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.02 %, which entails that for every 100 dollars of revenue, it generated $0.02 of operating income.

Determining Stepan's profitability involves analyzing its financial statements and using various financial metrics to determine if Stepan is a good buy. For example, gross profit margin measures Stepan's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Stepan's profitability and make more informed investment decisions.

Stepan's Earnings Breakdown by Geography

Evaluate Stepan's management efficiency

Stepan Company has Return on Asset of 0.0201 % which means that on every $100 spent on assets, it made $0.0201 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0422 %, implying that it generated $0.0422 on every 100 dollars invested. Stepan's management efficiency ratios could be used to measure how well Stepan manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to 0.02. The value of Return On Capital Employed is expected to slide to 0.04. At this time, Stepan's Intangibles To Total Assets are quite stable compared to the past year. Fixed Asset Turnover is expected to rise to 2.76 this year, although the value of Other Assets will most likely fall to 1.09.

	Last Reported	Projected for Next Year
Book Value Per Share	48.07	50.47
Tangible Book Value Per Share	42.14	44.25
Enterprise Value Over EBITDA	14.51	15.24
Price Book Value Ratio	1.59	1.49
Price Fair Value	1.59	1.49
Enterprise Value Multiple	14.51	15.24
Enterprise Value	580.8 M	609.8 M

Stepan showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.

Dividend Yield

0.0245

Forward Dividend Yield

0.0245

Forward Dividend Rate

1.54

Beta

0.835

Basic technical analysis of Stepan Stock

As of the 25th of February, Stepan has the Coefficient Of Variation of (652.75), risk adjusted performance of (0.11), and Variance of 2.67. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Stepan Company, as well as the relationship between them. Please validate Stepan Company coefficient of variation and maximum drawdown to decide if Stepan is priced more or less accurately, providing market reflects its prevalent price of 63.37 per share. Given that Stepan Company has information ratio of (0.16), we advise you to double-check Stepan Company's current market performance to make sure the company can sustain itself at a future point.

Stepan's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Stepan insiders, such as employees or executives, is commonly permitted as long as it does not rely on Stepan's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Stepan insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Samuel Hinrichsen 21 hours ago Insider Trading
		Samuel Hinrichsen 2 days ago Insider Trading
		Samuel Hinrichsen over a week ago Insider Trading
		Sean Moriarty over a week ago Disposition of 417 shares by Sean Moriarty of Stepan at 87.53 subject to Rule 16b-3
		Samuel Hinrichsen over a week ago Insider Trading
		David Kabbes over a week ago Disposition of 455 shares by David Kabbes of Stepan subject to Rule 16b-3
		Stepan F Quinn Jr over a week ago Disposition of 17874 shares by Stepan F Quinn Jr of Stepan at 61.568 subject to Rule 16b-3
		Samuel Hinrichsen over a week ago Insider Trading
		Samuel Hinrichsen over two weeks ago Insider Trading
		Samuel Hinrichsen over two weeks ago Insider Trading
		Samuel Hinrichsen over two weeks ago Insider Trading
		Samuel Hinrichsen over two weeks ago Insider Trading

Stepan's Outstanding Corporate Bonds

Stepan issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Stepan Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Stepan bonds can be classified according to their maturity, which is the date when Stepan Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	STLA 1711 29 JAN 27 Corp Bond US85855CAA80	View
	STLA 2691 15 SEP 31 Corp Bond US85855CAB63	View
	STLA 5625 12 JAN 28 Corp Bond US85855CAD20	View
	STLA 6375 12 SEP 32 Corp Bond US85855CAE03	View
	MPLX LP 4125 Corp Bond US55336VAK61	View
	MGM Resorts International Corp Bond US552953CD18	View

View All Stepan Corporate Bonds

Understand Stepan's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Stepan's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.11)
	Market Risk Adjusted Performance	(0.26)
	Mean Deviation	1.3
	Coefficient Of Variation	(652.75)
	Standard Deviation	1.63
	Variance	2.67
	Information Ratio	(0.16)
	Jensen Alpha	(0.26)
	Total Risk Alpha	(0.25)
	Treynor Ratio	(0.27)
	Maximum Drawdown	6.93
	Value At Risk	(2.71)
	Potential Upside	2.21
	Skewness	(0.18)
	Kurtosis	(0.05)

	Risk Adjusted Performance	(0.11)
	Market Risk Adjusted Performance	(0.26)
	Mean Deviation	1.3
	Coefficient Of Variation	(652.75)
	Standard Deviation	1.63
	Variance	2.67
	Information Ratio	(0.16)
	Jensen Alpha	(0.26)
	Total Risk Alpha	(0.25)
	Treynor Ratio	(0.27)
	Maximum Drawdown	6.93
	Value At Risk	(2.71)
	Potential Upside	2.21
	Skewness	(0.18)
	Kurtosis	(0.05)

Consider Stepan's intraday indicators

Stepan intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Stepan stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	1924.86
	Daily Balance Of Power	0.6618
	Rate Of Daily Change	1.01
	Day Median Price	63.53
	Day Typical Price	63.48
	Price Action Indicator	0.29
	Period Momentum Indicator	0.9
	Relative Strength Index	39.51

Stepan Corporate Filings

8K	20th of February 2025 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F4	18th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
F5	14th of February 2025 The annual filing required by the Securities and Exchange Commission (SEC) from company insiders or beneficial owners	View Verify
8K	19th of December 2024 An amendment to a previously filed Form 8-K	View Verify

Stepan time-series forecasting models is one of many Stepan's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Stepan's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Stepan Stock media impact

Far too much social signal, news, headlines, and media speculation about Stepan that are available to investors today. That information is available publicly through Stepan media outlets and privately through word of mouth or via Stepan internal channels. However, regardless of the origin, that massive amount of Stepan data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Stepan news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Stepan relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Stepan's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Stepan alpha.

Stepan Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Stepan can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Stepan Company Historical Investor Sentiment

Investor biases related to Stepan's public news can be used to forecast risks associated with an investment in Stepan. The trend in average sentiment can be used to explain how an investor holding Stepan can time the market purely based on public headlines and social activities around Stepan Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Stepan's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Stepan and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Stepan news discussions. The higher the estimate score, the more favorable the investor's outlook on Stepan.

Stepan Maximum Pain Price Across April 17th 2025 Option Contracts

Stepan's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Stepan close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Stepan's options.

Stepan Corporate Directors

Jan Reed	Independent Director	Profile
Lorinda Burgess	Independent Director	Profile
Michael Boyce	Independent Director	Profile
Gregory Lawton	Independent Director	Profile

When determining whether Stepan Company is a strong investment it is important to analyze Stepan's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Stepan's future performance. For an informed investment choice regarding Stepan Stock, refer to the following important reports: