Stepan

SCL · NYSE · Materials · Financials, fiscal 2016 to 2025

SCL · Last close · October 26, 2026

$64.77

Stepan's revenue rose 7.0% to $2.3 billion in fiscal 2025. Its operating margin was 3.4%, up from 3.2% a year earlier. Free cash flow was $25 million, down 35.4%. It paid out $35 million in dividends and buybacks, 138% of free cash flow. The diluted share count fell 0.2%.

STEPAN COMPANY Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0001193125-26-074976 Updated October 21, 2026

Revenue

$2.3B

7.0%

Operating margin

3.4%

0.1 pts

Net income

$47M

6.9%

Free cash flow

$25M

35.4%

Return on capital

3.6%

0.2 pts

Market cap

$1.5B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share fell 6.4% a year and net income 6.5% a year, while buybacks cut the share count by 1%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Stepan yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Stepan's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Stepan's fiscal 2025 free cash flow of $25M, net cash of −$494M at December 31, 2025 and 23 million diluted shares, from its filings. The scenarios are fitted to Stepan: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -5.6% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Specialty Chemicals), plus 1 point as a smaller company, worth $1.5B, plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target. A negative value means Stepan's net debt is larger than what that scenario's cash flows are worth today.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Stepan's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 14% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $64.77
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Stepan's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	159	174	130	100	133
Debt incl. finance leases	364	587	654	625	627
Net debt (negative means net cash)	204	413	524	526	494
Net debt to EBITDA	0.8x	1.4x	3.2x	2.9x	2.4x
Debt to equity	0.3x	0.5x	0.5x	0.5x	0.5x
Interest coverage	16.8x	11.6x	2.0x	2.1x	2.5x
Current ratio	1.8x	1.6x	1.4x	1.2x	1.3x
Quick ratio	1.2x	1.0x	1.0x	0.8x	0.8x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

No officer, director or 10% owner of Stepan reported buying or selling its shares on the open market between October 27, 2025 and October 26, 2026.

From Form 4 filings with the SEC. Grants, option exercises and shares withheld for tax aren't counted. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Fail
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Fail	Pass	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	4 of 9	7 of 9	6 of 9
Accruals ratio	−5.6%	−4.8%	−4.3%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Stepan side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Stepan	FY25	7.0%	3.4%	1.1%	3.6%	2.4x	6
Element Solutions	FY25	3.8%	13.4%	8.9%	6.5%	2.0x	7	Compare
Minerals Technologies	FY25	−2.2%	2.3%	4.2%	1.6%	—	4	Compare
NewMarket	FY25	−2.2%	19.9%	18.0%	16.3%	1.2x	5	Compare
Quaker Chemical	FY25	2.7%	2.8%	4.3%	1.3%	6.1x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,766	1,925	1,994	1,859	1,870	2,346	2,773	2,326	2,180	2,332
Revenue growth	−0.6%	9.0%	3.6%	−6.8%	0.6%	25.5%	18.2%	−16.1%	−6.3%	7.0%
Gross profit	339	346	339	340	384	396	427	278	272	270
Research and development	35	33	34	34	36	39	41	36	34	35
Operating income	128	155	149	127	172	171	207	59	70	78
Net income	86	101	111	103	127	138	147	40	50	47
Diluted EPS (US$)	3.73	4.31	4.76	4.42	5.45	5.92	6.38	1.75	2.20	2.05
Diluted shares (millions)	23	23	23	23	23	23	23	23	23	23
Cash flow
Cash from operations	212	199	171	218	235	72	161	175	162	148
Capital expenditure	103	79	87	106	126	194	302	260	123	122
Free cash flow	109	120	84	113	109	−122	−141	−85	39	25
Dividends paid	17	19	21	23	25	28	31	33	34	35
Share buybacks	2	6	16	13	15	17	25	0	0	0
Acquisitions	24	4	23	9	14	184	10	0	0	0
Stock-based compensation	13	7	7	9	10	12	14	6	5	6
Balance sheet at fiscal year end
Cash and short-term investments	226	299	300	315	350	159	174	130	100	133
Debt incl. finance leases	317	291	276	222	199	364	587	654	625	627
Total assets	1,354	1,503	1,515	1,579	1,752	2,066	2,433	2,363	2,305	2,358
Total liabilities	702	705	706	687	764	991	1,267	1,147	1,135	1,114
Shareholders' equity	635	740	807	892	987	1,074	1,166	1,216	1,170	1,244
Margins and ratios
Gross margin	19.2%	18.0%	17.0%	18.3%	20.5%	16.9%	15.4%	11.9%	12.5%	11.6%
Operating margin	7.2%	8.0%	7.5%	6.8%	9.2%	7.3%	7.5%	2.5%	3.2%	3.4%
Net margin	4.9%	5.2%	5.6%	5.5%	6.8%	5.9%	5.3%	1.7%	2.3%	2.0%
Free cash flow margin	6.2%	6.2%	4.2%	6.1%	5.8%	−5.2%	−5.1%	−3.7%	1.8%	1.1%
Return on capital	13.3%	14.2%	15.6%	13.2%	15.6%	12.9%	11.3%	2.9%	3.4%	3.6%
Return on equity	14.5%	14.7%	14.4%	12.1%	13.5%	13.4%	13.1%	3.4%	4.2%	3.9%
Return on assets	6.7%	7.1%	7.4%	6.7%	7.6%	7.2%	6.5%	1.7%	2.2%	2.0%
Net debt to EBITDA	0.5x	−0.0x	−0.1x	−0.5x	−0.6x	0.8x	1.4x	3.2x	2.9x	2.4x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Stepan's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Stepan.