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/SCL
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Stepan Co

Stepan Co

SCL
$58.63USD↓-1.03%-0.61 today

MARKET CAP

1.3B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$58 – $60

52W RANGE

$42
$68

AI Summary

Stalk
TrimMedium

The long-term secular trend for SCL remains bearish with price well below its declining 200 DMA. In the medium term, the stock is in a Stage 1 consolidation after a pronounced downtrend, indicating a continuation bias absent a breakout. Short-term timing is neutral as price tightly tracks rising EMAs while remaining range-bound without clear directional signals. With no mean-reversion eligibility and no active patterns, bearish execution is appropriate only on structural breakdowns. A decisive break and hold above the consolidation high would invalidate this bearish view.

  • ↑Revenue up 36% YoY to $364.4M in Q1 2023 shows strong demand
  • ↑Analysts’ $75 median price target implies 32.6% upside
  • ↓Negative profitability metrics highlight weak revenue-to-profit conversion
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Stepan Company (NYSE:SCL) is a leading manufacturer of specialty chemicals, primarily serving the industrial and consumer markets with a strong positioning in surfactants, polymers, and other chemical solutions. The company focuses on providing innovative solutions that cater to critical infrastructure demands, including transport, energy, and sustainable solutions in a growing context of infrastructure investment and environmental stewardship.

Bull says

  • ↑Revenue up 36% YoY to $364.4M in Q1 2023 shows strong demand
  • ↑Analysts’ $75 median price target implies 32.6% upside
  • ↑Project Catalyst targets $100M in cost savings to boost margins
  • ↑Adjusted EBITDA jumped 177% YoY to $54.5M; net debt/EBITDA at 0.46x
  • ↑Backlog exceeds $1.3B, underpinning future revenue visibility
  • ↑0.53% dividend yield plus share buybacks enhance returns

Bear says

  • ↓Negative profitability metrics highlight weak revenue-to-profit conversion
  • ↓Raw material inflation threatens margins and dampens growth prospects
  • ↓Execution risk may delay achieving $100M cost‐savings target
  • ↓High short interest and reduced institutional ownership reflect skepticism
  • ↓Stretched valuation may falter if operational challenges persist
  • ↓Competition and raw‐material volatility pose ongoing risks

Investment themes with SCL

Specialty Chemical↑ +0.35%

ECL · ALB · IFF

Earnings Call · Q1 2022 · Mgmt. Guidance

Updated 07-16-2026neutral

Transcript signals

Bull points

  • it's turning likely close to break-even in Q2 and then positive from there.
  • Based on the actions completed, our diversified business, and the confidence in our outlook, we expect to generate sufficient cash flows and have continued access to our credit facilities to fund our operations, working capital requirements, and capital programs.
  • Overall, the company's net debt has decreased by 42% since the start of 2020, bringing our net debt to adjusted EBITDA to 2.29 times at the end of the quarter.

Bear points

  • consolidated revenue was $268 million, a 4% decrease compared to the first quarter of 2021
  • Pipeline and pipe services segment revenue was $84 million, a 42% decrease compared to the first quarter of 2021
  • adjusted EBITDA was a negative $7.5 million, a 286% decrease from the prior year first quarter
Read full transcript analysis ›