Based on the analysis of Stepan's profitability, liquidity, and operating efficiency, Stepan Company may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At this time, Stepan's Net Debt is quite stable compared to the past year. Retained Earnings is expected to rise to about 1.3 B this year, although the value of Cash will most likely fall to about 80 M. Key indicators impacting Stepan's financial strength include:
The essential information of the day-to-day investment outlook for Stepan includes many different criteria found on its balance sheet. An individual investor should monitor Stepan's cash flow, debt, and profitability to accurately make informed decisions on whether to invest in Stepan.
Stepan competes with Innospec, Minerals Technologies, Oil Dri, Quaker Chemical, and Sensient Technologies. Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois. Stepan operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 24 people.
Comparative valuation techniques use various fundamental indicators to help in determining Stepan's current stock value. Our valuation model uses many indicators to compare Stepan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Stepan competition to find correlations between indicators driving Stepan's intrinsic value. More Info.
Stepan Company is rated fourth in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.45 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Stepan Company is roughly 2.24 . At this time, Stepan's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Stepan by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.
Stepan Company Systematic Risk
Stepan's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Stepan volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was ten with a total number of output elements of fifty-one. The Beta measures systematic risk based on how returns on Stepan Company correlated with the market. If Beta is less than 0 Stepan generally moves in the opposite direction as compared to the market. If Stepan Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Stepan Company is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Stepan is generally in the same direction as the market. If Beta > 1 Stepan moves generally in the same direction as, but more than the movement of the benchmark.
Stepan Thematic Clasifications
Stepan Company is part of several thematic ideas from Chemicals Makers to Sport Products. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Stepan Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Stepan's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Stepan growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of Stepan help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Stepan Company. We use our internally-developed statistical techniques to arrive at the intrinsic value of Stepan Company based on widely used predictive technical indicators. In general, we focus on analyzing Stepan Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Stepan's daily price indicators and compare them against related drivers.
When determining whether Stepan Company is a strong investment it is important to analyze Stepan's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Stepan's future performance. For an informed investment choice regarding Stepan Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Stepan Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Stepan. If investors know Stepan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Stepan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.413
Dividend Share
1.52
Earnings Share
2.41
Revenue Per Share
97.279
Quarterly Revenue Growth
0.076
The market value of Stepan Company is measured differently than its book value, which is the value of Stepan that is recorded on the company's balance sheet. Investors also form their own opinion of Stepan's value that differs from its market value or its book value, called intrinsic value, which is Stepan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stepan's market value can be influenced by many factors that don't directly affect Stepan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Stepan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stepan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stepan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.