Stepan Company (SCL) Stock

Stepan Company (SCL) is a Consumer Discretionary stock trading at $63.65 (as of 2026-08-21), with a market capitalization of $1.45B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Stepan Company: how it makes money

Stepan produces and sells specialty and intermediate chemicals, including surfactants, polymers, and specialty products, to other manufacturers and earns money from net sales of these chemical inputs used in end products like cleaning products and personal care.

Because Stepan sells chemical inputs to other manufacturers, its profit engine depends on downstream product demand translating into orders, and on executing working-capital discipline (it explicitly tracks Inventory Reduction).

Revenue by segment (latest quarter)
Surfactants$0.4B
Polymers$0.1B
Specialty Products$0.0B

Business quality (Weak): Clear segment structure (Surfactants, Polymers, Specialty Products) and segment sales figures are provided. However, the latest quarter also shows a negative operating margin, and the operational metrics listed are mix-and-match (customers, inventory, production, and volume), which makes it harder to pick one single operational driver for all outcomes.

Bull case

  • Multi-segment chemical platform: Operations are organized into three segments, Surfactants, Polymers, and Specialty Products, which can diversify exposure across different end-product applications.
  • Focus on working-capital management: The company tracks Inventory Reduction, which aligns with converting production activity into cash-focused execution.
  • Commercial expansion indicators: It reports New Customers Added and New Tier 2 and Tier 3 Customers Added, which can indicate continued efforts to broaden its customer base.

Bear case

  • Profitability pressure in the latest quarter: The latest quarter shows operating margin of -8.2%, indicating losses at the operating level despite positive gross margin.
  • Volume softness signals: It reports Rigid Polyols Sales Volume Decrease of 10.0% and Volume of 3.0%, which can point to uneven demand or mix across product areas.
  • Specialty Products are a small portion of net sales: Specialty Products net sales are listed at 0.02B, so unfavorable trends in the larger Surfactants or Polymers segments could dominate overall results.
Valuation — source: SEC EDGAR (first-party)
Price$63.65
Market Cap$1.45B
EV / EBITDA15.0
Price / Book1.21
Price / Sales0.62
FCF Yield2.6%
DCF Value (model)$18.31
DCF Upside vs Price-71.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.33B
Net Margin2.0%
Revenue Growth (YoY)1.9%
EPS Growth (YoY)-310.5%
FCF Growth (YoY)-45.9%
Financial Health — source: SEC EDGAR
Altman Z-Score2.74 (grey)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Sector P/E (Consumer Discretionary)20.7
Industry P/E (Consumer Goods)22.1
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($165.49M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryConsumer Goods
CEOLuis E. Rojo
Employees2,396
CountryUS
IPO Date1992-03-17

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SCL earnings history · SCL institutional & insider holders · SCL KPIs & operating metrics · SCL financials · SCL investor presentations & press releases · SCL SEC filings · SCL peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.