Stepan Company is a specialty chemicals company trading at a forward price-to-earnings of 13.9x with a PEG of 0.02 and 38% analyst upside, and has broken out above all major moving averages, but business quality is below the minimum threshold at 2.2 out of 10 with 3 consecutive earnings misses, creating a fundamental quality barrier to full conviction.
Thesis pillars
- Compelling Value With Analyst Upside→Stable
- Technical Breakout Above All Mas→Stable
- Quality Below Minimum Threshold→Stable
- +1 more pillar — see the Why tab for full reasoning
Stepan Company (SCL) Stock Analysis
Inst Constrain edge
Basic Materials · Specialty Chemicals
Sell if holding. Engine safety override at $65.17: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10. Specifically: Elevated put/call ratio: 2.00; Below-average business quality.
Stepan Company, which was incorporated under the laws of the state of Delaware on February 19, 1959, and its subsidiaries produce specialty and intermediate chemicals, which are sold to other manufacturers and used in a variety of end products. The Company has three reportable... Read more
Sell if holding. Engine safety override at $65.17: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10. Specifically: Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.0/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 74d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and 8k serious 2.05. Suitability: aggressive.
Recent developments
updated 2026-08-15Recent Developments — Stepan Company
Material events (past 30 days)
- 8K Jul 29, 2026 MEDIUM Item 2.05: On July 28, 2026, the Board of Directors (the "Board") of the Company approved a plan to reduce the Company's global salaried workforce by around 100 roles during the third quarter of 2026 as part of Project Catalyst, the Company's previously announced comprehensive operational and efficiency ini...
- 8K Jul 29, 2026 MEDIUM Item 5.02: Delaware | | 36-1823834 (State or other jurisdiction of incorporation) | | (IRS Employer Identification No.) 1101 Skokie Boulevard, Suite 500, Northbrook, IL 60062 (Address of principal executive offices, including zip code) (847) 446-7500 (Registrant's telephone number, including area code) (For...
Latest news
- NEWS Stepan Q2 Adj. EPS $1.18 Beats $0.61 Estimate, Sales $684.109M Beat $635.850M Estimate — benzinga Jul 29, 2026 positive
- NEWS Earnings Scheduled For April 28, 2026 — benzinga Apr 28, 2026 neutral
- NEWS Stepan Q1 Adj. EPS $0.45 Beats $0.44 Estimate, Sales $604.509M Miss $612.950M Estimate — benzinga Apr 28, 2026 neutral
Generated 2026-08-15T11:32:25Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-07-29Item 2.05MEDIUMOn July 28, 2026, the Board of Directors (the "Board") of the Company approved a plan to reduce the Company's global salaried workforce by around 100 roles during the third quarter of 2026 as part of Project Catalyst, the Company's previously announced comprehensive operational and efficiency ini...SEC filing →
- 2026-07-29Item 5.02MEDIUMDelaware | | 36-1823834 (State or other jurisdiction of incorporation) | | (IRS Employer Identification No.) 1101 Skokie Boulevard, Suite 500, Northbrook, IL 60062 (Address of principal executive offices, including zip code) (847) 446-7500 (Registrant's telephone number, including area code) (For...SEC filing →
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Rating Breakdown
2 floor-breakers
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $65.17: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10. Specifically: Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $60.71. Score 6.0/10, moderate confidence.
Take-profit target: $72.25 (+10.9% upside). Prior stop was $60.71. Stop-loss: $60.71.
Quality below floor (2.5 < 4.0).
Stepan Company trades at a P/E of N/A (forward 17.7). TrendMatrix value score: 8.3/10. Verdict: Sell.
5 analysts cover SCL with a consensus score of 4.0/5. Average price target: $85.
What does Stepan Company do?Stepan Company, which was incorporated under the laws of the state of Delaware on February 19, 1959, and its...
Stepan Company, which was incorporated under the laws of the state of Delaware on February 19, 1959, and its subsidiaries produce specialty and intermediate chemicals, which are sold to other manufacturers and used in a variety of end products. The Company has three reportable segments: Surfactants, Polymers and Specialty Products.