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↓Deteriorating
- Technical Breakout Above All Mas→Stable
- Quality Below Minimum Threshold→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 26, 2026
Stepan Company (SCL) Stock Analysis
Sector Rotation edge
Basic Materials · Specialty Chemicals
Sell if holding. Engine safety override at $68.41: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.2/10. Specifically: Elevated put/call ratio: 2.75; 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 $68.41: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.2/10. Specifically: Elevated put/call ratio: 2.75; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.2/10, moderate confidence.
Passes 5/7 gates (positive momentum, clean insider activity, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and 8k serious 2.05. Suitability: aggressive.
Recent developments
updated 2026-10-29Recent Developments — Stepan Company
Latest news
- NEWS Stepan Q3 2026 Earnings Call Transcript — benzinga Oct 28, 2026 neutral
- NEWS Stepan Company Increases Quarterly Cash Dividend — fiscal.ai Oct 28, 2026 positive
- NEWS Stepan Company Reports Third Quarter 2026 Financial Results — fiscal.ai Oct 28, 2026
- NEWS Stepan Raises Quarterly Dividend From $0.395 Per Share To $0.405 Per Share — benzinga Oct 28, 2026 positive
- NEWS Stepan Q3 Adj. EPS $0.94 Beats $0.72 Estimate, Sales $692.154M Beat $634.300M Estimate — benzinga Oct 28, 2026 positive
Generated 2026-10-29T10:28:33Z.
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 →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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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
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $68.41: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.2/10. Specifically: Elevated put/call ratio: 2.75; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $65.05. Score 6.2/10, moderate confidence.
Analyst target: $72.25 (+5.6% upside). Prior stop was $65.05. Stop-loss: $65.05.
Quality below floor (2.5 < 4.0).
Stepan Company trades at a P/E of 360.1 (forward 18.5). TrendMatrix value score: 8.2/10. 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.