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Stepan Company

SCLBasic MaterialsNASDAQ

Specialty Chemicals

PriceMA150MA200
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Financials · Annual
Revenue
$2.33B
+7.0% YoY
Net Income
$46.9M
-6.9% YoY
EBITDA
$212.2M
+10.4% YoY
Free Cash Flow
$44.4M

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About Stepan Company

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland,. With a market capitalization of $1.20B, it sits in small-cap territory. It operates through three segments: Surfactants, Polymers, and Specialty Products.

Key stats
Market Cap$1.20B
Fwd P/E13.45
EPS$-0.62
Beta0.95
52W Change-3.3%
Dividend Yield3.00%
ROE-1.2%
Analysis

The company holds $140.8M in cash, though total debt stands at $713.1M. This level of leverage is common in the industry but worth monitoring as interest rate conditions evolve. Annual free cash flow of $44.4M supports ongoing capital allocation decisions and provides a cushion against unexpected expenses or downturns. ROE of -1.2% points to negative capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. ROA of 1.5% is on the lower side, which is common in asset-heavy industries. Revenue has pulled back from $2.77B (2022) to $2.33B (2025), a 16% decline worth watching.

Stepan Company carries a heavier debt load relative to its cash position, which introduces financial risk that investors should weigh. It is important to consider these factors alongside broader market conditions and individual financial goals when reviewing SCL.

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