Stepan Price To Sales vs. Revenue
| SCL Stock | USD 68.33 3.17 4.43% |
Stepan Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.2 | 0.1194 |
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| Net Profit Margin | 0.0271 | 0.0173 |
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| Operating Profit Margin | 0.0239 | 0.0252 |
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| Pretax Profit Margin | 0.0396 | 0.0208 |
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| Return On Assets | 0.0162 | 0.017 |
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| Return On Equity | 0.0314 | 0.033 |
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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 |
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 Revenue vs. Price To Sales 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. Stepan Company is rated below average in price to sales category among its peers. It also is rated below average in revenue category among its peers totaling about 3,110,979,133 of Revenue per Price To Sales. At this time, Stepan's Price To Sales Ratio 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 Revenue vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Stepan |
| = | 0.75 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Stepan |
| = | 2.33 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Stepan Revenue vs Competition
Stepan Company is rated below average in revenue category among its peers. Market size based on revenue of Materials industry is at this time estimated at about 86.73 Billion. Stepan holds roughly 2.33 Billion in revenue claiming about 2.68% of all equities under Materials industry.
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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -130.6 M | -137.1 M | |
| Operating Income | 58.6 M | 65.4 M | |
| Income Before Tax | 48.4 M | 65.9 M | |
| Total Other Income Expense Net | -10.2 M | -10.7 M | |
| Net Income | 40.2 M | 54 M | |
| Income Tax Expense | 8.2 M | 7.8 M | |
| Net Income Applicable To Common Shares | 169.2 M | 177.7 M | |
| Net Income From Continuing Ops | 52.2 M | 102.9 M | |
| Non Operating Income Net Other | 8.6 M | 9.1 M | |
| Interest Income | 3.8 M | 4.9 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.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?
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Check out World Market Map. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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.