Stepan EBITDA vs. Price To Book

SCL Stock  USD 66.82  0.30  0.45%   
Considering Stepan's profitability and operating efficiency indicators, Stepan's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Stepan's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
169.7 M
Current Value
122.8 M
Quarterly Volatility
66.4 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Stepan's Price To Sales Ratio is quite stable compared to the past year. EV To Sales is expected to rise to 1.24 this year, although the value of Days Sales Outstanding will most likely fall to 41.64. At this time, Stepan's Non Operating Income Net Other is quite stable compared to the past year. Interest Income is expected to rise to about 4.9 M this year, although the value of Total Other Income Expense Net will most likely fall to (10.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.20.1194
Way Up
Pretty Stable
Net Profit Margin0.02710.0173
Way Up
Pretty Stable
Operating Profit Margin0.02390.0252
Notably Down
Slightly volatile
Pretax Profit Margin0.03960.0208
Way Up
Very volatile
Return On Assets0.01620.017
Notably Down
Slightly volatile
Return On Equity0.03140.033
Notably Down
Slightly volatile
For Stepan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stepan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stepan Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stepan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stepan Company over time as well as its relative position and ranking within its peers.
  

Stepan's Revenue Breakdown by Earning Segment

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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Stepan. If investors know Stepan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Stepan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.873
Dividend Share
1.5
Earnings Share
2
Revenue Per Share
95.823
Quarterly Revenue Growth
(0.03)
The market value of Stepan Company is measured differently than its book value, which is the value of Stepan that is recorded on the company's balance sheet. Investors also form their own opinion of Stepan's value that differs from its market value or its book value, called intrinsic value, which is Stepan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stepan's market value can be influenced by many factors that don't directly affect Stepan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Stepan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stepan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stepan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Stepan Company Price To Book vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Stepan's current stock value. Our valuation model uses many indicators to compare Stepan value to that of its competitors to determine the firm's financial worth.
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Stepan Company is rated second in ebitda category among its peers. It also is rated second in price to book category among its peers . The ratio of EBITDA to Price To Book for Stepan Company is about  137,645,007 . At this time, Stepan's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Stepan by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Stepan Price To Book vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Stepan

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
169.68 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Stepan

P/B

 = 

MV Per Share

BV Per Share

 = 
1.23 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Stepan Price To Book Comparison

1.234.572.80100%
Stepan is currently under evaluation in price to book category among its peers.

Stepan Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Stepan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stepan will eventually generate negative long term returns. The profitability progress is the general direction of Stepan's change in net profit over the period of time. It can combine multiple indicators of Stepan, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-130.6 M-137.1 M
Operating Income58.6 M65.4 M
Income Before Tax48.4 M65.9 M
Total Other Income Expense Net-10.2 M-10.7 M
Net Income40.2 M54 M
Income Tax Expense8.2 M7.8 M
Net Income Applicable To Common Shares169.2 M177.7 M
Net Income From Continuing Ops52.2 M102.9 M
Non Operating Income Net Other8.6 M9.1 M
Interest Income3.8 M4.9 M
Net Interest Income-12.2 M-12.8 M
Change To Netincome-10.9 M-10.3 M
Net Income Per Share 1.77  1.59 
Income Quality 4.35  3.01 
Net Income Per E B T 0.83  0.55 

Stepan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Stepan. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Stepan position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Stepan's important profitability drivers and their relationship over time.

Use Stepan in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Stepan position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stepan will appreciate offsetting losses from the drop in the long position's value.

Stepan Pair Trading

Stepan Company Pair Trading Analysis

The ability to find closely correlated positions to Stepan could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stepan when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Stepan - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Stepan Company to buy it.
The correlation of Stepan is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Stepan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stepan Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Stepan can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Stepan position

In addition to having Stepan in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Railroads Theme or any other thematic opportunities.
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When determining whether Stepan Company is a strong investment it is important to analyze Stepan's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Stepan's future performance. For an informed investment choice regarding Stepan Stock, refer to the following important reports:
Check out World Market Map.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Stepan's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stepan Company at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Stepan's income statement, its balance sheet, and the statement of cash flows.
Potential Stepan investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Stepan investors may work on each financial statement separately, they are all related. The changes in Stepan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Stepan's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.