The Screen · Basic Materials · Specialty Chemicals
Stepan Company
SCL · the NYSE · USD · Market cap $1.4B · 2,328 employees
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland, the United Kingdom, Bra…
Screened 2026-08-27 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markdown label.
Stepan Company holds its Markdown at $62.81. The statistical read favours the buyers, held for 46 days.
As held on the ledger · 2026-08-27
Phase
Markdown · caution
Quantitative state
The statistical read favours the buyers, held for 46 days
Price at the screen
$62.81
Valuation
N/A trailing · 17.02 forward price to earnings
Values screen
PASS· score 70.0
Beta
0.94
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
28.67%
Below 33%
Interest-bearing debt is just 28.7% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
22.08%
Below 49%
Money owed to the company is 22.1% of assets, under the 49% limit.
Pass
Revenue purity
0.18%
Below 5%
Only 0.2% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-08-27 screen. The gold marker is the market price at the same screen. The price runs 7.5% above the base estimate.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-08-27 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Chemicals Maker Grinding Through a Slump
Stepan makes the specialty ingredients that go into foams, cleaners and coatings, yet those end markets are quiet right now. Revenue inches forward at just 2 percent while margins sit at minus 1 percent and return on equity is also negative, so the business is not covering its own cost of capital. At a forward multiple of 15 times and a share price well above our fair value, the shares offer no margin of safety in a sector that moves with the industrial cycle.
Because the company operates in a classic cyclical industry, a low multiple on depressed earnings is rarely a bargain. Peak-cycle profits often look attractive on paper, only to collapse when volumes fall, leaving investors holding a lower multiple on even lower earnings. Here the numbers already show contraction rather than recovery, so the apparent value is more likely a warning than an opportunity.
Currency swings, raw-material spikes and customer destocking can all widen the losses quickly, and the thin analyst coverage gives little external signal on timing. Ethical screens are passed, yet the financial picture and cyclical trap keep any investment case off the table. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
SCL trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-09-12Markdown · changed$62.81+7.1%Entry 5
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 7.1% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 6%. Our forward projection puts the odds of a 10% gain over the next month near 15%. The street (1 analysts) rates it none, with a mean price target of $75.
2026-08-12Markup · changed$58.63+7.6%Entry 4
The framework has shifted from accumulation to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 7.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 6%. Our forward projection puts the odds of a 10% gain over the next month near 15%. The street (1 analysts) rates it none, with a mean price target of $75.
2026-07-18Accumulation$54.48+0.0%Entry 3
The framework reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 6%. Our forward projection puts the odds of a 10% gain over the next month near 15%. The street (1 analysts) rates it none, with a mean price target of $75.
2026-07-03Accumulation$54.48+0.0%Entry 2
The framework reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Accumulation$54.48Entry 1
The framework reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
