Stepan Valuation
| SCL Stock | USD 76.09 0.07 0.09% |
At this time, the company appears to be undervalued. Stepan Company has a current Real Value of $83.6 per share. The regular price of the company is $76.09. Our model measures the value of Stepan Company from inspecting the company fundamentals such as Operating Margin of 0.04 %, return on equity of 0.0378, and Shares Outstanding of 22.49 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Stepan's valuation include:
Price Book 1.4024 | Enterprise Value 2.3 B | Enterprise Value Ebitda 13.2896 | Price Sales 0.782 | Forward PE 18.6567 |
Undervalued
Today
Please note that Stepan's price fluctuation is very steady at this time. Calculation of the real value of Stepan Company is based on 3 months time horizon. Increasing Stepan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Stepan stock is determined by what a typical buyer is willing to pay for full or partial control of Stepan Company. Since Stepan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Stepan Stock. However, Stepan's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 76.09 | Real 83.6 | Target 91.0 | Hype 76.07 | Naive 73.25 |
The intrinsic value of Stepan's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Stepan's stock price.
Estimating the potential upside or downside of Stepan Company helps investors to forecast how Stepan stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Stepan more accurately as focusing exclusively on Stepan's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Stepan's intrinsic value based on its ongoing forecasts of Stepan's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Stepan's closest peers.
Stepan Cash |
|
Stepan Valuation Trend
Knowing Stepan's actual value is paramount for traders when making sound investment determinations. Using both Stepan's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Stepan Revenue by Product
Stepan Total Value Analysis
Stepan Company is at this time forecasted to have company total value of 2.31 B with market capitalization of 1.71 B, debt of 725.9 M, and cash on hands of 173.75 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Stepan fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.31 B | 1.71 B | 725.9 M | 173.75 M |
Stepan Investor Information
About 85.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.4. 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 29th of November 2024. The entity had 2:1 split on the 17th of December 2012. Based on the analysis of Stepan's profitability, liquidity, and operating efficiency, Stepan Company may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.0239 | 0.0252 |
|
| |||||
| Total Cash From Operating Activities | 103.5 M | 174.9 M |
|
| |||||
| Operating Income | 65.4 M | 58.6 M |
|
|
Stepan Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Stepan has an asset utilization ratio of 98.41 percent. This suggests that the Company is making $0.98 for each dollar of assets. An increasing asset utilization means that Stepan Company is more efficient with each dollar of assets it utilizes for everyday operations.Stepan Ownership Allocation
Stepan Company shows a total of 22.49 Million outstanding shares. The majority of Stepan Company outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Stepan to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Stepan Company. Please pay attention to any change in the institutional holdings of Stepan Company as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Stepan Profitability Analysis
The company reported the last year's revenue of 2.33 B. Total Income to common stockholders was 40.2 M with profit before taxes, overhead, and interest of 427.07 M.Stepan Past Distributions to stockholders
About Stepan Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Stepan Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Stepan Company based exclusively on its fundamental and basic technical indicators. By analyzing Stepan's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Stepan's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Stepan. We calculate exposure to Stepan's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Stepan's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 277.6 M | 207.5 M | |
| Pretax Profit Margin | 0.02 | 0.04 | |
| Operating Profit Margin | 0.03 | 0.02 | |
| Net Profit Margin | 0.02 | 0.03 | |
| Gross Profit Margin | 0.12 | 0.20 |
Stepan Quarterly Retained Earnings |
|
A single share of Stepan represents a small ownership stake in the entity. As a stockholder of Stepan, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Stepan Dividends Analysis For Valuation
At this time, Stepan's Dividends Paid is quite stable compared to the past year. Dividend Yield is expected to rise to 0.02 this year, although the value of Dividend Payout Ratio will most likely fall to 0.42. . At this time, Stepan's Retained Earnings are quite stable compared to the past year. Price Earnings Ratio is expected to rise to 56.24 this year, although the value of Retained Earnings Total Equity will most likely fall to about 763 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 32.9 M | 34.5 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.82 | 0.42 | |
| Dividend Paid And Capex Coverage Ratio | 0.60 | 0.94 |
There are various types of dividends Stepan can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Stepan shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Stepan Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Stepan pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Stepan by the value of the dividends paid out.
Stepan Growth Indicators
Investing in growth stocks can be very risky. If the company such as Stepan does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 22.9 M | |
| Quarterly Earnings Growth Y O Y | 0.873 | |
| Forward Price Earnings | 18.6567 |
Stepan Current Valuation Indicators
Stepan's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Stepan's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Stepan, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Stepan's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Stepan's worth.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: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in 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. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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.