Home Sectors Basic Materials Stock Highlights: Stepan Company (NYSE: SCL)

Stock Highlights: Stepan Company (NYSE: SCL)


Stepan Company trades as part of the basic materials sector and is part of the chemicals industry. The company CEO is F. Quinn Stepan. Stepan Co, along with its subsidiaries produces specialty and intermediate chemicals, which are sold to other manufacturers and are used in end products. The company manufactures and markets surfactants, polymers and specialty products.

Previous Intraday Trading Performance:

The SCL stock showed a previous change of -1.39% with an open at 90.97 and a close of 89.92. It reached an intraday high of 91.13 and a low of 89.04.

SeekingAlpha:  Stepan Co (SCL) CEO Quinn Stepan Jr. on Q4 2018 Results – Earnings Call Transcript


The stock has a market cap of $2.0b with 22.5m shares outstanding, of which the float is 22.0m shares. Trading volume reached 86,085 shares compared to its average volume of 77,024 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Stepan Company shares returned -4.66% and in the past 30 trading days it returned 6.84%. Over three months, it changed 18.83%. In one year it has changed 8.04% and within that year its 52-week high was 95.32 and its 52-week low was 68.09. SCL stock is 32.06% above its 52 Week Low.

Our calculations show a 200 day moving average of 82.44 and a 50 day moving average of 84.58. Currently SCL stock is trading 9.08% above its 200 day moving average.

SeekingAlpha:  Stepan Co (SCL) CEO Quinn Stepan Jr. on Q4 2018 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 4.88 that ended on 31st of December 2018, which according to the previous close, that is a PE of 18.66. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.75. The TTM EPS is 4.88, which comes to a TTM PE of 18.43. Historically, the PE high was 26.20 and the PE low was 11.40. If the stock reached its PE low, that would represent a price of 55.62, which is a decrease of -38.14%.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.02
09-30-2018:  1.11
06-30-2018:  1.38
03-31-2018:  1.37

The dividend per share is currently 1.00, which is a dividend yield of 1.11%. Also, the payout ratio is 20.49%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 19.93, which means it may be overvalued by -351.21%

Indicators to Watch:

Based on the latest filings, there is 2.20% of insider ownership and 101.40% of institutional ownership. Short-interest is 257,660, which is 1.14% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.24. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.30

SeekingAlpha:  VVUS, RNN, MBOT & PCG among midday movers

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 14.80%, return on assets is 7.63%, profit margin is 5.65%, price-to-sales is 1.03 and price-to-book is 2.71.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 5  :Past Performance Score
 6  :Financial Strength Score
 0  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.