SCL
Basic MaterialsStepan Company · Chemicals - Specialty · $1B
What is Stepan Company?
Stepan Company is a specialty chemicals manufacturer that supplies intermediate and specialty chemical ingredients to industrial and consumer product makers worldwide. Headquartered in Northbrook, Illinois, the company serves a broad range of end markets through three distinct business segments.
Stepan generates revenue by producing surfactants, polymers, and specialty products sold to other manufacturers rather than directly to consumers. Its surfactants go into cleaning products, personal care items, and agricultural emulsifiers. Its polymers — including polyurethane polyols and phthalic anhydride — serve the construction, coatings, and automotive industries. The Specialty Products segment supplies flavors, emulsifiers, and solubilizers for food, nutritional supplements, and pharmaceutical applications.
Stepan Company was incorporated in 1992 and is headquartered in Northbrook, Illinois.
- Surfactants for cleaning, personal care, and agricultural uses
- Polyurethane polyols for rigid insulation foam and CASE applications
- Phthalic anhydride for construction and automotive composites
- Polyester resins for coatings, adhesives, and sealants
- Food-grade emulsifiers and solubilizers for nutritional and pharma markets
Is SCL a Good Stock to Buy?
UQS Score rates SCL as Below Average overall, reflecting meaningful challenges across several quality dimensions.
Among the five pillars, Valuation stands out as the relative bright spot — SCL's shares appear reasonably priced compared to many sector peers, which may appeal to value-oriented investors. Growth and Risk both register at a Neutral level, suggesting neither a strong tailwind nor an acute near-term threat on those dimensions.
Quality and Moat are both rated Weak, indicating that the business generates below-average returns and lacks a clearly defensible competitive position relative to the broader chemicals sector.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SCL pay dividends?
Yes — Stepan Company pays a dividend.
Stepan Company pays a regular dividend, a practice consistent with its long-standing identity as a mature specialty chemicals business. The dividend reflects management's commitment to returning capital to shareholders even through chemical-cycle volatility. Income-focused investors should review the current yield and payout details on Stepan's investor relations page, as figures change with earnings results.
When does SCL report earnings?
Stepan Company reports earnings on a quarterly cadence, typical for US-listed equities.
Results have reflected the cyclical nature of the specialty chemicals industry, with segment performance influenced by raw material costs, end-market demand, and pricing dynamics across surfactants and polymers. Investors should monitor how volume trends in construction and consumer products affect each segment.
For the most recent quarter's results, visit Stepan Company's investor relations page at stepan.com.
SCL Price History
-58.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Stepan Company?
Based on Stepan Company's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SCL Long-term Outlook
With Growth rated Neutral, Stepan's near-term trajectory appears neither strongly expansionary nor contracting — the business is navigating a period of steady-state demand across its core segments. The Neutral Risk rating suggests the balance sheet and operational profile do not present outsized near-term threats, though the Weak Quality and Moat ratings indicate the company has limited pricing power to buffer margin pressure. Valuation rated Good means the current share price may already reflect these constraints, leaving less room for disappointment.
Growth drivers
- Demand for thermal insulation in green building construction supporting polymer volumes
- Agricultural and industrial surfactant demand tied to global crop cycles
- Specialty Products exposure to growing nutritional supplement and pharma ingredient markets
Key risks
- Raw material cost volatility compressing margins in a low-moat environment
- Cyclical end-market softness in construction and consumer products
- Limited pricing power given the Weak Moat rating across commodity-adjacent chemical segments
SCL vs Peers
Stepan operates in a fragmented specialty and intermediate chemicals space alongside several peers across adjacent niches.
Green Plains focuses on ethanol production and agricultural commodity processing, giving it a different raw-material and end-market exposure than Stepan's surfactant and polymer mix.
Oil-Dri specializes in sorbent minerals for pet care and agricultural markets, a narrower product focus compared to Stepan's diversified chemical segments.
Neo Performance Materials concentrates on rare-earth and specialty magnetic materials, serving advanced technology industries rather than the consumer and construction markets central to Stepan.
Frequently Asked Questions
What does Stepan Company do?
Stepan Company manufactures specialty and intermediate chemicals sold to other manufacturers. Its three segments — Surfactants, Polymers, and Specialty Products — supply ingredients for cleaning products, rigid insulation foam, coatings, adhesives, and food-grade applications. The company does not sell finished consumer goods directly.
Does SCL pay dividends?
Yes, Stepan Company pays a regular dividend. The company has maintained a dividend program consistent with its profile as a mature industrial chemicals business. For current yield and payment schedule details, check Stepan's investor relations page, as these figures are updated each quarter.
When does SCL report earnings?
Stepan Company reports financial results on a quarterly cadence, as is standard for US-listed companies. Exact dates for upcoming earnings releases are published on the company's investor relations page at stepan.com ahead of each reporting period.
Is SCL a good stock to buy?
UQS Score rates SCL as Below Average, driven by Weak Quality and Moat pillar ratings. Valuation is rated Good, which may interest value-oriented investors, but the limited competitive moat and below-average returns profile warrant careful consideration. The full pillar breakdown is available to UQS Pro members.
Is SCL overvalued?
Based on the UQS Valuation pillar, SCL is rated Good — meaning the shares appear reasonably priced relative to sector peers rather than stretched. However, a fair valuation does not offset the fundamental concerns reflected in the Weak Quality and Moat ratings. View the complete valuation metrics with a Pro account.
How does SCL compare to its competitors?
Stepan's diversified three-segment model distinguishes it from more narrowly focused peers like Oil-Dri, which concentrates on sorbent minerals, and Neo Performance Materials, which targets rare-earth technology markets. Green Plains operates in ethanol rather than specialty chemicals. Each peer faces different demand cycles and margin dynamics.
What is SCL's market cap bracket?
Stepan Company is classified as a small-cap stock. This places it in a tier where liquidity can be more limited than large-cap peers, and the company may receive less institutional analyst coverage — factors worth considering alongside the UQS quality assessment.
Who founded Stepan Company?
Stepan Company's founding history and leadership lineage are widely documented in public records and the company's official corporate history available at stepan.com. The company was incorporated in 1992 in its current form and is headquartered in Northbrook, Illinois.
Is SCL a long-term quality investment?
As a long-term quality indicator, the UQS Score rates SCL Below Average, primarily because Quality and Moat are both Weak. Long-term compounding typically favors businesses with durable competitive advantages and strong returns — areas where Stepan currently scores below sector norms. Pro members can explore the full multi-pillar trend data.
What is the main competitive advantage of Stepan Company?
Stepan's UQS Moat pillar is rated Weak, suggesting the company does not currently demonstrate a strongly defensible competitive position. Its breadth across surfactants, polymers, and specialty products provides some diversification, but the intermediate chemicals business is largely price-competitive with limited structural barriers to entry.
What sector does SCL belong to?
Stepan Company belongs to the Basic Materials sector, specifically within specialty and intermediate chemicals. This sector is cyclical, with profitability tied to raw material costs, industrial demand, and global economic conditions — all of which influence Stepan's segment performance across its product lines.
Is SCL a growth stock or value stock?
Based on UQS pillar labels, SCL leans toward the value side — Valuation is rated Good while Growth is Neutral. This profile suggests the shares are not priced for aggressive expansion, but the business is not generating the kind of above-average returns typically associated with high-quality value investments either.
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Pro Analysis
SCL — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 35.2 | 9.5 | 22.0 | 51.6 | 41.3 | 72.3 | -0.4 |
| May 12, 2026 | 35.6 | 9.5 | 22.0 | 51.6 | 43.2 | 72.9 | 0.0 |
| May 10, 2026 | 35.6 | 4.0 | 22.0 | 51.6 | 39.6 | 85.8 | -1.2 |
| May 8, 2026 | 36.8 | 4.0 | 22.0 | 54.7 | 39.6 | 89.4 | -1.3 |
| May 7, 2026 | 38.1 | 15.7 | 22.0 | 54.7 | 42.8 | 75.2 | -0.1 |
| May 6, 2026 | 38.2 | 15.7 | 22.0 | 54.7 | 42.8 | 76.1 | +0.6 |
| May 3, 2026 | 37.6 | 15.7 | 22.0 | 52.1 | 42.8 | 75.8 | 0.0 |
| Apr 26, 2026 | 37.6 | 15.7 | 22.0 | 52.1 | 42.8 | 75.4 | -0.1 |
| Apr 20, 2026 | 37.7 | 15.7 | 22.0 | 52.1 | 42.8 | 76.1 | +1.1 |
| Apr 19, 2026 | 36.6 | 15.7 | 22.0 | 46.7 | 42.8 | 76.3 | +0.1 |
SCL — Pillar Breakdown
Quality
— 9.5/100 (25%)Stepan Company currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 51.6/100 (20%)Stepan Company shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 41.3/100 (15%)Stepan Company has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 72.9/100 (15%)Stepan Company trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 22/100 (25%)Stepan Company operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SCL.
Score Composition
Financial Data
More Stock Analysis
How is the SCL UQS Score Calculated?
The UQS (Unified Quality Score) for Stepan Company is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Stepan Company's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Stepan Company is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.