Stock fact sheet · data as of
Stepan Co (SCL): fair value, margin of safety and Wheel Score
Basic Materials · Chemicals - Specialty · United States · Speculative / Distressed
Is SCL undervalued?
Stepan Co (SCL) closed at 62.12 on 16 Oct 2026, 110% above the GLS average fair value of 29.54. 2 of the 2 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
Only 2 of the nine models produced a value (10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files SCL under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for SCL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 35.83 | -42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 23.25 | -63% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -11.22 | -118% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 85.00 | +37% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - SCL passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.0 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 2.4%, ROE 3.8%, ROA 2.0% - with debt at 0.56 times equity and negative free cash flow.
The dividend yield is 2.54% at a payout ratio of -1680%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Surfactants 71%, Polymers 26%, Specialty Products 3% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 2.4% |
|---|---|---|---|
| GLS Moat | 4.0 / 10 | ROE | 3.8% |
| Debt / equity | 0.56 | ROA | 2.0% |
| Free-cash-flow yield | -2.4% | Payout ratio | -1680% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
SCL scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 0/25, Health 11/20, Moat 6/15, Premium 20/20, Stability 9/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 214 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 97k shares a day on a market cap of $1.4B, with a beta of 0.95; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -110% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 6 / 15 | moat 4.0/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 9 / 20 | 97k shares/day, $1.4B cap, beta 0.95 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Stepan Co reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals - Specialty
The 12 companies below are the closest to Stepan Co by market cap within the Chemicals - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ECVT Ecovyst Inc. | 10.17 | 6.79 | -50% | 45Weak | $1.1B |
| ODC Oil-Dri Corporation of America | 81.00 | 136.41 | +41% | 39No options | $1.1B |
| CC The Chemours Company | 12.91 | 18.51 | +30% | 45Weak | $1.9B |
| MTX Minerals Technologies Inc. | 63.75 | 50.48 | -26% | 45Weak | $2.0B |
| KRO Kronos Worldwide, Inc. | 7.40 | 7.42 | +0% | 45Weak | $852M |
| IOSP Innospec Inc. | 96.60 | 95.97 | -1% | 63Fair | $2.4B |
| KOP Koppers Holdings Inc. | 43.44 | 60.71 | +28% | 45Weak | $822M |
| NGVT Ingevity Corporation | 70.54 | 38.93 | -81% | 56Fair | $2.4B |
| KWR Quaker Houghton | 158.55 | 142.15 | -12% | 60Fair | $2.7B |
| WDFC WD-40 Company | 204.20 | 167.53 | -22% | 60Fair | $2.7B |
| HWKN Hawkins, Inc. | 131.82 | 94.91 | -39% | 53Fair | $2.8B |
| FUL H.B. Fuller Company | 51.57 | 56.98 | +10% | 72Good | $2.8B |
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Start free See the Sunday ScanQuestions about SCL
Is SCL undervalued right now?
No: at 62.12 the stock trades 110% above the GLS average fair value of 29.54 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of SCL and what does it mean?
SCL scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SCL?
29.54 per share as of 16 Oct 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Stepan Co report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SCL have listed options, and how liquid are they?
Yes. The nightly snapshot found 126 listed contracts with 214 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.