Latest Ratios: P/E Ratio 30.7x · EV/EBITDA 10.2x · ROE 3.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $1.1B | $1.5B | $2.2B | $2.5B | $2.9B | $2.8B | $2.4B | $1.7B | $1.8B | $1.9B |
| Enterprise Value | $2.0B | $1.6B | $2.1B | $2.8B | $2.9B | $3.2B | $2.7B | $2.3B | $1.7B | $1.8B | $1.9B |
| P/E Ratio → | 30.73 | 23.10 | 29.41 | 54.03 | 16.69 | 20.99 | 21.89 | 23.18 | 15.32 | 18.32 | 21.84 |
| P/S Ratio | 0.61 | 0.46 | 0.68 | 0.93 | 0.89 | 1.23 | 1.48 | 1.29 | 0.87 | 0.96 | 1.07 |
| P/B Ratio | 1.16 | 0.87 | 1.27 | 1.78 | 2.11 | 2.69 | 2.81 | 2.68 | 2.20 | 2.49 | 2.96 |
| P/FCF | 56.41 | 42.73 | 37.77 | — | — | — | 25.36 | 21.16 | 20.43 | 15.35 | 17.25 |
| P/OCF | 9.68 | 7.33 | 9.16 | 12.41 | 15.27 | 40.12 | 11.80 | 10.93 | 10.09 | 9.28 | 8.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.70 | 0.95 | 1.18 | 1.05 | 1.35 | 1.43 | 1.26 | 0.84 | 0.94 | 1.10 |
| EV / EBITDA | 10.18 | 8.40 | 11.31 | 16.78 | 9.67 | 12.06 | 10.56 | 11.33 | 7.16 | 7.76 | 9.67 |
| EV / EBIT | 28.67 | 19.07 | 25.87 | 42.77 | 14.63 | 17.57 | 14.97 | 16.97 | 11.05 | 11.32 | 15.16 |
| EV / FCF | — | 64.74 | 52.62 | — | — | — | 24.45 | 20.68 | 19.71 | 15.10 | 17.83 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 11.6% | 11.6% | 12.5% | 11.9% | 15.4% | 16.9% | 20.5% | 18.3% | 17.1% | 17.6% | 19.2% |
| Operating Margin | 3.0% | 3.0% | 3.2% | 2.5% | 7.5% | 7.3% | 9.2% | 6.8% | 7.6% | 8.0% | 7.1% |
| Net Profit Margin | 2.0% | 2.0% | 2.3% | 1.7% | 5.3% | 5.9% | 6.8% | 5.5% | 5.7% | 4.8% | 4.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.9% | 3.9% | 4.2% | 3.4% | 13.1% | 13.4% | 13.5% | 12.3% | 14.8% | 13.3% | 14.4% |
| ROA | 2.0% | 2.0% | 2.2% | 1.7% | 6.5% | 7.2% | 7.6% | 6.7% | 7.6% | 6.5% | 6.6% |
| ROIC | 2.9% | 2.9% | 3.0% | 2.6% | 10.5% | 11.5% | 14.9% | 11.9% | 15.2% | 15.9% | 13.1% |
| ROCE | 4.2% | 4.2% | 4.2% | 3.3% | 12.5% | 11.8% | 13.3% | 10.7% | 13.2% | 14.0% | 12.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.56 | 0.56 | 0.58 | 0.59 | 0.55 | 0.39 | 0.25 | 0.29 | 0.35 | 0.39 | 0.50 |
| Debt / EBITDA | 3.54 | 3.54 | 3.74 | 4.34 | 2.11 | 1.61 | 0.99 | 1.26 | 1.19 | 1.24 | 1.58 |
| Net Debt / Equity | — | 0.45 | 0.50 | 0.48 | 0.40 | 0.24 | -0.10 | -0.06 | -0.08 | -0.04 | 0.10 |
| Net Debt / EBITDA | 2.86 | 2.86 | 3.19 | 3.55 | 1.54 | 1.00 | -0.39 | -0.27 | -0.26 | -0.13 | 0.31 |
| Debt / FCF | — | 22.01 | 14.85 | — | — | — | -0.91 | -0.49 | -0.72 | -0.25 | 0.58 |
| Interest Coverage | 3.28 | 3.28 | 4.11 | 4.03 | 18.33 | 25.62 | 23.57 | 11.81 | 11.96 | 11.86 | 8.88 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.29 | 1.29 | 1.21 | 1.40 | 1.56 | 1.82 | 2.17 | 2.41 | 2.37 | 2.46 | 2.31 |
| Quick Ratio | 0.84 | 0.84 | 0.78 | 0.96 | 0.96 | 1.21 | 1.65 | 1.81 | 1.78 | 1.92 | 1.72 |
| Cash Ratio | 0.20 | 0.20 | 0.15 | 0.21 | 0.26 | 0.32 | 0.84 | 0.93 | 0.89 | 0.93 | 0.76 |
| Asset Turnover | — | 0.99 | 0.95 | 0.98 | 1.14 | 1.14 | 1.07 | 1.18 | 1.34 | 1.31 | 1.30 |
| Inventory Turnover | 6.90 | 6.90 | 6.61 | 7.71 | 5.83 | 6.38 | 6.79 | 7.46 | 8.25 | 9.19 | 8.22 |
| Days Sales Outstanding | — | 60.72 | 64.96 | 66.24 | 57.50 | 65.28 | 58.82 | 54.36 | 51.26 | 55.66 | 54.44 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 3.2% | 2.3% | 1.5% | 1.2% | 1.0% | 0.9% | 1.0% | 1.2% | 1.0% | 0.9% |
| Payout Ratio | 74.7% | 74.7% | 67.4% | 81.8% | 20.8% | 20.4% | 20.0% | 22.4% | 18.5% | 20.6% | 20.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 4.3% | 3.4% | 1.9% | 6.0% | 4.8% | 4.6% | 4.3% | 6.5% | 5.5% | 4.6% |
| FCF Yield | 1.8% | 2.3% | 2.6% | — | — | — | 3.9% | 4.7% | 4.9% | 6.5% | 5.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% | 0.6% | 0.5% | 0.6% | 0.9% | 0.3% | 0.1% |
| Total Shareholder Yield | 2.4% | 3.2% | 2.3% | 1.5% | 2.3% | 1.6% | 1.5% | 1.5% | 2.1% | 1.3% | 1.0% |
| Shares Outstanding | — | $23M | $23M | $23M | $23M | $23M | $23M | $23M | $23M | $23M | $23M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SCL stock.
Stepan Co's current P/E ratio is 30.7x. The historical average is 20.8x. This places it at the 90th percentile of its historical range.
Stepan Co's current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.5x.
Stepan Co's return on equity (ROE) is 3.9%. The historical average is 12.3%.
Based on historical data, Stepan Co is trading at a P/E of 30.7x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Stepan Co's current dividend yield is 2.43% with a payout ratio of 74.7%.
Stepan Co has 11.6% gross margin and 3.0% operating margin.
Stepan Co's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Thin gross margin durability
Metrics are mathematically derived from official filings.
Margin Inflection Still Fragile
Gross margin jumped to 14.6% in 2026Q2 from 10.7% in 2026Q1, per reported financials, yet the trailing 11.6% average remains far below specialty peers, suggesting the recovery may be cyclical rather than structural.
The 2026Q2 operating margin of 6.2% is the highest in the dataset, but it follows a quarter of negative net margin, indicating volatility rather than a stable trend. The 3.3% net margin still lags Innospec's 6.6% and Balchem's 14.9%, implying limited pricing power in the core surfactant business. Investors should monitor whether the gross margin can sustain above 14% or if feedstock cost pass-through lags will compress it again.
Returns Trapped at Cyclical Lows
ROIC averaged only 0.8% over the last ten quarters, per financial statements, with 2026Q2 at 1.8%, far below the cost of capital and peer ROICs of 11-12%, indicating value destruction rather than compounding.
Despite the recent earnings beat, ROE of 3.9% and ROIC of 1.8% remain weak, suggesting that the asset base is not generating adequate returns. The low returns are driven by thin margins and high capital intensity, with asset turnover of 0.29x, which is typical for a processor but insufficient to offset margin compression. Unless margins expand durably, the company will continue to earn below its cost of capital, limiting its ability to reinvest profitably.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 62 days in 2026Q2 from 75 days a year earlier, per reported figures, but free cash flow turned negative at -4.2% margin, indicating that working capital swings are consuming cash despite improved sales.
DSO improved to 62 days from 72 days, and DIO fell to 48 days, but the CCC remains elevated due to a DPO of 47 days, which limits supplier financing. The negative FCF margin in 2026Q2, despite higher revenue, suggests that inventory and receivables build-up is outpacing cash generation. This pattern is consistent with a volume-led recovery that requires more working capital, and investors should watch if the company can convert sales growth into cash.
Low Debt Masks Coverage Strain
Debt-to-equity of 0.58 appears conservative, but D/EBITDA spiked to 9.66x in 2026Q2 from 20.28x in 2025Q4, per balance sheet data, indicating that EBITDA volatility is the real risk, not the debt level.
Interest coverage of 6.73x in 2026Q2 is comfortable, but it swung to -9.87x in 2026Q1, showing how thin margins can make debt service vulnerable. The absolute debt of $707M is manageable, but the company's low profitability means that any sustained margin compression could pressure coverage ratios. The fortress-like D/E is misleading because the company's earnings power is weak, so leverage should be assessed relative to EBITDA stability.
Liquidity Cushion Thins
Current ratio fell to 1.15 in 2026Q2 from 1.38 in 2024Q1, with quick ratio at 0.77, per reported figures, indicating a shrinking buffer that may be inadequate if working capital needs rise further.
The quick ratio below 1.0 suggests that inventory is a significant component of current assets, and in a downturn, inventory may not be easily liquidated. Cash dropped to $113.7M, and with negative FCF, the company may need to rely on credit lines or debt issuance to fund operations. The liquidity position appears adequate for now, but the trend is concerning, and investors should monitor whether the company can generate positive FCF to rebuild its cash buffer.
P/E Misleads on Cyclicality
The trailing P/E of 31.2x appears expensive, but EV/EBITDA of 10.29x is more reasonable, per valuation data, because the P/E is distorted by depressed earnings and fails to capture the company's asset-heavy, cyclical nature.
The P/E is commonly misapplied to Stepan because its earnings are highly volatile due to feedstock cost swings and one-time items, making the multiple unreliable. EV/EBITDA is a better metric as it normalizes for capital structure and non-cash charges, but even that should be viewed on a forward basis (8.45x) to reflect the expected recovery. Investors should also consider EV/Sales (0.62x) to gauge the market's valuation of the company's revenue base, which is more stable than earnings.