Recent News
On July 30, 2025 Stepan Company reported second-quarter 2025 results: net income of $11.3 million, adjusted net income of $12.0 million, EBITDA of $50.6 million, and global sales volume up 1% year-over-year; cash from operations totaled $11.2 million while free cash flow for the quarter was a negative $14.4 million. The Board declared a quarterly cash dividend of $0.385 per share, payable September 15, 2025 to holders of record August 29, 2025.
Technical Analysis
Directional indicators show no dominant trend: ADX at 14.12 signals a non-trending market, so immediate price direction lacks conviction and favors range behavior rather than a sustained breakout.
DI+ registers a dip & reversal while DI- sits at 18.51 and is decreasing; the DI+ dip & reversal indicates renewed bullish pressure relative to sellers, supporting potential short-term recovery attempts against the broader non-trend backdrop.
MACD sits negative at -0.61 with a peak & reversal pattern, which indicates waning momentum; however the MACD currently sits above its signal line (-0.73), producing a short-term bullish cross that can fuel transient rallies even as longer-horizon momentum softens.
MRO at 5.03 and increasing indicates price currently sits modestly above WMDST’s target model and that momentum could exert mild downward pressure if no fresh catalysts arrive; the increasing MRO suggests that the over-target condition has strengthened recently.
RSI at 45.33 with a peak & reversal pattern signals weakened upward momentum and room to trade sideways or slip lower toward support bands before any decisive recovery; the reading supports consolidation near recent averages.
Price sits at $48.56 slightly below the 20-day average of $49.02 and well below the 200-day average of $56.32; the 12-day EMA shows a dip & reversal while the 26-day EMA at $49.64 remains above the close, implying short-lived rebounds may meet resistance from intermediate moving averages. Bollinger bands place the close between the 1x lower band ($48.25) and the mid band, consistent with a tight range. The super trend upper band at $51.62 lies above current price, marking a near-term overhead resistance area.
Fundamental Analysis
Profitability shows narrow margins: operating (EBIT) margin stands at 3.02%, down 36.64% quarter-over-quarter and down 11.92% year-over-year, leaving the margin well below the industry peer mean of 15.05% and median of 18.29% while sitting above the industry peer low. EBITDA totaled $49.25 million and EBIT $17.97 million, reflecting modest operating scale relative to revenue of $594.69 million.
Earnings per share missed estimates: reported EPS $0.52 versus an estimate of $0.90, an EPS shortfall of $0.38 or a -42.22% surprise, signaling near-term earnings pressure versus analyst expectations and contributing to valuation variance.
Cash flow and leverage show stress: operating cash flow reached $11.19 million but free cash flow registered $-14.41 million, producing a free cash flow yield of -1.21% and a QoQ contraction in free cash flow yield of -40.87%; net debt stands near $569.13 million with debt-to-EBITDA around 14.38 and debt-to-assets at 29.31%, reflecting elevated leverage relative to earnings capacity.
Margins and returns remain thin: gross margin at 12.09% sits below the industry peer mean of 37.88%, while return on equity registers 0.91% and return on assets 0.47%, both very low compared with typical industry performance; asset turnover at 0.247 is above the industry peer mean of 0.159, indicating reasonable asset utilization despite compressed margins.
Valuation metrics present mixed signals: trailing PE at 107.77 and forward PE near 53.87 reflect elevated multiples relative to near-term earnings, even as price-to-book at 0.96 sits below the industry peer mean and median, suggesting market capitalization places a different premium on book value than on forward earnings. WMDST values the stock as over-valued, aligning valuation with the combination of modest profitability, negative quarterly free cash flow, and elevated leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-28 |
| CASH FLOW | Begin Period Cash Flow | $ 107.5 M |
| Operating Cash Flow | $ 11.2 M | |
| Capital Expenditures | $ -25.60 M | |
| Change In Working Capital | $ -33.11 M | |
| Dividends Paid | $ -8.70 M | |
| Cash Flow Delta | $ -18.59 M | |
| End Period Cash Flow | $ 88.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 594.7 M | |
| Forward Revenue | $ 301.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 522.8 M | |
| Depreciation | $ 31.3 M | |
| Depreciation and Amortization | $ 31.3 M | |
| Research and Development | $ 14.7 M | |
| Total Operating Expenses | $ 576.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 71.9 M | |
| EBITDA | $ 49.3 M | |
| EBIT | $ 18.0 M | |
| Operating Income | $ 18.0 M | |
| Interest Income | $ -5.49 M | |
| Interest Expense | — | |
| Net Interest Income | $ -5.49 M | |
| Income Before Tax | $ 13.8 M | |
| Tax Provision | $ 2.4 M | |
| Tax Rate | 17.7 % | |
| Net Income | $ 11.3 M | |
| Net Income From Continuing Operations | $ 11.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.90 | |
| EPS Actual | $ 0.52 | |
| EPS Difference | $ -0.38 | |
| EPS Surprise | -42.222 % | |
| Forward EPS | $ 1.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.4 B | |
| Intangible Assets | $ 141.5 M | |
| Net Tangible Assets | $ 1.1 B | |
| Total Current Assets | $ 914.8 M | |
| Cash and Short-Term Investments | $ 88.9 M | |
| Cash | $ 88.9 M | |
| Net Receivables | $ 442.2 M | |
| Inventory | $ 329.5 M | |
| Long-Term Investments | $ 63.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 281.8 M | |
| Short-Term Debt | $ 274.8 M | |
| Total Current Liabilities | $ 677.8 M | |
| Net Debt | $ 569.1 M | |
| Total Debt | $ 708.1 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 1.2 B | |
| Retained Earnings | $ 1.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 54.90 | |
| Shares Outstanding | 22.616 M | |
| Revenue Per-Share | $ 26.29 | |
| VALUATION | Market Capitalization | $ 1.2 B |
| Enterprise Value | $ 1.8 B | |
| Enterprise Multiple | 36.653 | |
| Enterprise Multiple QoQ | 13.071 % | |
| Enterprise Multiple YoY | -16.779 % | |
| Enterprise Multiple IPRWA | high: 85.583 median: 84.899 mean: 59.556 SCL: 36.653 low: -118.916 |
|
| EV/R | 3.036 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.946 | |
| Asset To Liability | 2.057 | |
| Debt To Capital | 0.363 | |
| Debt To Assets | 0.293 | |
| Debt To Assets QoQ | -2.215 % | |
| Debt To Assets YoY | 143.786 % | |
| Debt To Assets IPRWA | high: 0.733 median: 0.378 mean: 0.341 SCL: 0.293 low: 0.021 |
|
| Debt To Equity | 0.57 | |
| Debt To Equity QoQ | -4.412 % | |
| Debt To Equity YoY | 140.848 % | |
| Debt To Equity IPRWA | high: 2.523 median: 0.962 mean: 0.831 SCL: 0.57 low: 0.024 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.955 | |
| Price To Book QoQ | -8.774 % | |
| Price To Book YoY | -40.569 % | |
| Price To Book IPRWA | high: 14.757 median: 6.71 mean: 5.269 SCL: 0.955 low: 0.307 |
|
| Price To Earnings (P/E) | 107.774 | |
| Price To Earnings QoQ | 62.597 % | |
| Price To Earnings YoY | -48.148 % | |
| Price To Earnings IPRWA | high: 139.289 median: 139.289 SCL: 107.774 mean: 102.822 low: -3.22 |
|
| PE/G Ratio | -2.829 | |
| Price To Sales (P/S) | 1.994 | |
| Price To Sales QoQ | -5.873 % | |
| Price To Sales YoY | -42.097 % | |
| Price To Sales IPRWA | high: 20.44 median: 19.039 mean: 12.987 SCL: 1.994 low: 0.914 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 53.871 | |
| Forward PE/G | -1.414 | |
| Forward P/S | 3.932 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -150.972 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.247 | |
| Asset Turnover Ratio QoQ | -2.081 % | |
| Asset Turnover Ratio YoY | 5.011 % | |
| Asset Turnover Ratio IPRWA | high: 0.334 SCL: 0.247 median: 0.175 mean: 0.159 low: 0.003 |
|
| Receivables Turnover | 1.354 | |
| Receivables Turnover Ratio QoQ | -5.933 % | |
| Receivables Turnover Ratio YoY | 7.523 % | |
| Receivables Turnover Ratio IPRWA | high: 2.422 mean: 1.484 median: 1.361 SCL: 1.354 low: 0.117 |
|
| Inventory Turnover | 1.637 | |
| Inventory Turnover Ratio QoQ | -5.474 % | |
| Inventory Turnover Ratio YoY | -12.061 % | |
| Inventory Turnover Ratio IPRWA | high: 2.465 SCL: 1.637 median: 1.426 mean: 1.172 low: 0.034 |
|
| Days Sales Outstanding (DSO) | 67.41 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 72.602 | |
| Cash Conversion Cycle Days QoQ | 7.698 % | |
| Cash Conversion Cycle Days YoY | -1.768 % | |
| Cash Conversion Cycle Days IPRWA | high: 488.171 mean: 94.03 SCL: 72.602 median: 55.354 low: 5.01 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.51 | |
| CapEx To Revenue | -0.043 | |
| CapEx To Depreciation | -0.818 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.6 B | |
| Net Invested Capital | $ 1.9 B | |
| Invested Capital | $ 1.9 B | |
| Net Tangible Assets | $ 1.1 B | |
| Net Working Capital | $ 236.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.131 | |
| Current Ratio | 1.35 | |
| Current Ratio QoQ | 11.236 % | |
| Current Ratio YoY | 1.97 % | |
| Current Ratio IPRWA | high: 6.372 mean: 1.979 median: 1.53 low: 1.364 SCL: 1.35 |
|
| Quick Ratio | 0.863 | |
| Quick Ratio QoQ | 8.625 % | |
| Quick Ratio YoY | -5.886 % | |
| Quick Ratio IPRWA | high: 3.851 mean: 1.336 median: 1.122 SCL: 0.863 low: 0.803 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.377 | |
| Cost Of Debt | 0.418 % | |
| Interest Coverage Ratio | 4.961 | |
| Interest Coverage Ratio QoQ | -36.492 % | |
| Interest Coverage Ratio YoY | -99.74 % | |
| Interest Coverage Ratio IPRWA | high: 24.749 median: 9.66 mean: 8.277 SCL: 4.961 low: -21.281 |
|
| Operating Cash Flow Ratio | 0.001 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 51.096 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.303 | |
| Dividend Payout Ratio | 0.767 | |
| Dividend Rate | $ 0.38 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.107 % | |
| Revenue Growth | 0.242 % | |
| Revenue Growth QoQ | -98.12 % | |
| Revenue Growth YoY | -73.23 % | |
| Revenue Growth IPRWA | high: 47.859 % median: 8.936 % mean: 8.282 % SCL: 0.242 % low: -4.472 % |
|
| Earnings Growth | -38.095 % | |
| Earnings Growth QoQ | -106.349 % | |
| Earnings Growth YoY | 6.002 % | |
| Earnings Growth IPRWA | high: 346.154 % mean: 26.891 % median: 26.0 % SCL: -38.095 % low: -380.0 % |
|
| MARGINS | ||
| Gross Margin | 12.088 % | |
| Gross Margin QoQ | -4.969 % | |
| Gross Margin YoY | -3.296 % | |
| Gross Margin IPRWA | high: 62.406 % median: 42.61 % mean: 37.88 % SCL: 12.088 % low: -24.576 % |
|
| EBIT Margin | 3.021 % | |
| EBIT Margin QoQ | -36.64 % | |
| EBIT Margin YoY | -11.924 % | |
| EBIT Margin IPRWA | high: 46.541 % median: 18.287 % mean: 15.046 % SCL: 3.021 % low: -33.607 % |
|
| Return On Sales (ROS) | 3.021 % | |
| Return On Sales QoQ | -36.64 % | |
| Return On Sales YoY | -11.924 % | |
| Return On Sales IPRWA | high: 23.528 % median: 18.253 % mean: 14.093 % SCL: 3.021 % low: -33.437 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -14.40 M | |
| Free Cash Flow Yield | -1.214 % | |
| Free Cash Flow Yield QoQ | -40.867 % | |
| Free Cash Flow Yield YoY | 10936.364 % | |
| Free Cash Flow Yield IPRWA | high: 5.667 % mean: 1.019 % median: 0.633 % SCL: -1.214 % low: -1.464 % |
|
| Free Cash Growth | -44.18 % | |
| Free Cash Growth QoQ | -75.515 % | |
| Free Cash Growth YoY | -56.612 % | |
| Free Cash Growth IPRWA | high: 333.766 % median: 266.0 % mean: 13.978 % SCL: -44.18 % low: -926.923 % |
|
| Free Cash To Net Income | -1.27 | |
| Cash Flow Margin | 0.074 % | |
| Cash Flow To Earnings | 0.039 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.472 % | |
| Return On Assets QoQ | -43.81 % | |
| Return On Assets YoY | 17.122 % | |
| Return On Assets IPRWA | high: 11.068 % median: 2.274 % mean: 1.461 % SCL: 0.472 % low: -15.06 % |
|
| Return On Capital Employed (ROCE) | 1.033 % | |
| Return On Equity (ROE) | 0.009 | |
| Return On Equity QoQ | -44.397 % | |
| Return On Equity YoY | 14.411 % | |
| Return On Equity IPRWA | high: 0.233 median: 0.056 mean: 0.037 SCL: 0.009 low: -0.393 |
|
| DuPont ROE | 0.929 % | |
| Return On Invested Capital (ROIC) | 0.778 % | |
| Return On Invested Capital QoQ | -36.02 % | |
| Return On Invested Capital YoY | -91.865 % | |
| Return On Invested Capital IPRWA | high: 4.864 % median: 3.363 % mean: 2.483 % SCL: 0.778 % low: -6.68 % |
|