0.47%
-2.57%
-19.81%
-17.94%
-29.25%
-40.68%
-31.74%
80.0080.0075.0075.0070.0070.0065.0065.0060.0060.0055.0055.0012/3/202412/3/202412/13/202412/13/202412/24/202412/24/20241/4/20251/4/20251/15/20251/15/20251/26/20251/26/20252/6/20252/6/20252/17/20252/17/2025
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Company Description

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products.It operates through three segments: Surfactants, Polymers, and Specialty Products.The Surfactants segment offers surfactants that are used as principal ingredients in consumer and industrial cleaning products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.


Its surfactants are also used in various applications, including emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites.The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered products, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products.The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications.


It serves in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally.Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.

Market Data

Last Price 61.76
Change Percentage 0.47%
Open 61.72
Previous Close 61.47
Market Cap ( Millions) 1390
Volume 130514
Year High 94.77
Year Low 59.55
M A 50 63.84
M A 200 75.39

Financial Ratios

FCF Yield 9.05%
Dividend Yield 1.84%
ROE 4.20%
Debt / Equity 28.43%
Net Debt / EBIDTA 171.90%
Price To Book 1.21
Price Earnings Ratio 28.01
Price To FCF 11.04
Price To sales 0.64
EV / EBITDA 8.9

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Surfactants

Expected Growth : 6.5 %

What the company do ?

Surfactants from Stepan Company are specialty chemicals that reduce surface tension, enhancing cleaning power and foam stability in personal care, laundry, and industrial applications.

Why we expect these perspectives ?

Stepan Company's 6.5% growth in Surfactants is driven by increasing demand for personal care products, rising adoption of eco-friendly and sustainable surfactants, and growing use in industrial applications such as oilfield chemicals and lubricants. Additionally, strategic acquisitions and expansion into emerging markets have contributed to the company's growth.

Segment nΒ°2 -> Polymers

Expected Growth : 6.8 %

What the company do ?

Stepan Company's Polymers segment produces specialty polyurethane polyols, polyester polyols, and other polymeric products used in various applications such as coatings, adhesives, and foams.

Why we expect these perspectives ?

Stepan Company's 6.8% growth in Polymers is driven by increasing demand for sustainable and eco-friendly products, expansion in the construction and automotive industries, and strategic investments in R&D to develop innovative polymer solutions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

Segment nΒ°3 -> Specialty Products

Expected Growth : 7.2 %

What the company do ?

Specialty Products from Stepan Company include a range of surfactants, emulsifiers, and other specialty chemicals used in personal care, cleaning, and industrial applications.

Why we expect these perspectives ?

Stepan Company's Specialty Products segment growth of 7.2% is driven by increasing demand for natural and sustainable ingredients in personal care and food products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in high-growth areas such as natural oils and bio-based products also contribute to the segment's growth.

Stepan Company Products

Product Range What is it ?
Surfactants Stepan Company's surfactants are a class of specialty chemicals used in a wide range of applications, including personal care, household cleaning, and industrial processes.
Polyurethane Polyols Stepan Company's polyurethane polyols are used in the production of flexible and rigid foam, coatings, adhesives, and sealants.
Specialty Esters Stepan Company's specialty esters are used in a variety of applications, including personal care, pharmaceuticals, and industrial processes.
Amphoteric Surfactants Stepan Company's amphoteric surfactants are used in personal care products, such as shampoos, conditioners, and body washes.
Quaternary Compounds Stepan Company's quaternary compounds are used in a variety of applications, including personal care, pharmaceuticals, and industrial processes.

Stepan Company's Porter Forces

The threat of substitutes for Stepan Company is moderate due to the presence of alternative products in the market.

The bargaining power of customers is high due to the large number of customers and the availability of alternative products.

The bargaining power of suppliers is low due to the company's large size and negotiating power.

The threat of new entrants is moderate due to the moderate barriers to entry and the availability of resources.

The intensity of rivalry is high due to the large number of competitors and the high stakes in the market.

Capital Structure

Value
Debt Weight 35.44%
Debt Cost 4.87%
Equity Weight 64.56%
Equity Cost 8.11%
WACC 6.96%
Leverage 54.90%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CMT Core Molding Technologies, Inc., together with its subsidiaries, operates as a molder of thermoplastic and thermoset structural products. The company offers a range of manufacturing processes that include compression molding …
NGVT Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through two …
ECVT Ecovyst Inc. provides specialty catalysts and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates through two segments, Ecoservices and Catalyst Technologies. The Ecoservices …
PRM Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Oil Additives. The Fire …
KOP Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through three segments: Railroad and Utility …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
61.76$
Current Price
61.76$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

ValueQualityYieldMomentumVolatilityGrowth
Company A-Score: 5.80Peer Group Average: 7.50Leader: 5.50

Peers Group Analysis

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