At a glance
Stepan Company is worth $1.56B, about 33 times its fiscal 2025 earnings. Revenue grew 7.0% to $2.33B in fiscal 2025, with 2.0% kept as profit; over 5 years it has grown 4.5% a year. It pays a 2.34% dividend yield, raised every year for at least 9 years, and returned $202.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +59.1% over the past year with dividends reinvested and −8.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 30.0% in the 2020 crash (S&P 500: 33.7%) and 24.9% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Stepan Company makes chemicals that other manufacturers use as ingredients. It does not sell to shoppers. Its customers make detergents, shampoos, building insulation, coatings and many other finished goods. Revenue was $2.33 billion in the fiscal year ended December 31, 2025. The company had 2,328 employees at year-end.
Surfactants are the core of the business. They brought in 71.4% of fiscal 2025 revenue. A surfactant is an ingredient that helps water lift dirt off a surface, or helps oil and water mix. Stepan's surfactants go into laundry and dish detergents, shampoos, body wash and toothpaste. They are also used in farm chemicals, wallboard and oilfield products. Polymers brought in 25.1%. These include polyols, a building block for rigid foam insulation, plus resins for coatings, adhesives and sealants. Specialty Products, at 3.5%, supplies ingredients for food, flavorings, supplements and medicines.
Stepan calls itself one of the world's leading merchant producers of surfactants, meaning it makes them to sell to other companies. It competes on product performance, technical help and meeting each customer's needs, not on price alone. Margins are thin: net income was about 2 cents per dollar of sales in fiscal 2025. The US made up 55.7% of revenue, followed by France (9.1%), the UK (7.3%), Mexico (7%), Brazil (6.7%) and Poland (6.4%).
Price history
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SCL +59.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Surfactants | $1.67B | 71.4% |
| Polymers | $584.5M | 25.1% |
| Specialty Products | $81.7M | 3.5% |
By geography
| US | $1.30B | 55.7% |
| FR | $211.5M | 9.1% |
| All Other Countries | $181.6M | 7.8% |
| GB | $169.9M | 7.3% |
| MX | $164.0M | 7% |
| BR | $156.2M | 6.7% |
| PL | $148.9M | 6.4% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $684.1M, up 15% from a year earlier, and net income was $22.9M (+102.0%).
- For fiscal 2025, revenue was $2.33B (+7.0% year over year; +4.5% a year from FY2020 to FY2025) with a 2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.5% watch |
|---|---|
| Operating margin | 3.4% weak |
| Free cash flow margin | 1.1% watch |
| Return on equity (FY2025) | 3.8% weak |
| Return on assets (FY2025) | 2% weak |
| Net cash (cash minus debt) | $-519.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.87B | $126.8M | $109.4M |
| FY2021 | $2.35B | $137.8M | $-122.3M |
| FY2022 | $2.77B | $147.2M | $-140.8M |
| FY2023 | $2.33B | $40.2M | $-85.5M |
| FY2024 | $2.18B | $50.4M | $39.3M |
| FY2025 | $2.33B | $46.9M | $25.4M |
Valuation snapshot
| Market value | $1.56B |
|---|---|
| P/E ratio | 33.4 |
| Dividend yield | 2.34% |
Rank among 1514 US companies
Market value at each year end
Stepan’s market value went from $1.83B at the end of 2016 to $1.56B on Oct 28, 2026, down 15%; since the end of 2025 it is up 45%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.56B | +45.2% |
| 2025 | $1.07B | -26.4% |
| 2024 | $1.46B | -31.2% |
| 2023 | $2.11B | -10.6% |
| 2022 | $2.37B | -15.1% |
| 2021 | $2.79B | +4.0% |
| 2020 | $2.68B | +16.3% |
| 2019 | $2.31B | +38.4% |
| 2018 | $1.67B | -6.3% |
| 2017 | $1.78B | -2.6% |
| 2016 | $1.83B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SCL price data to Oct 28, 2026 | +47.7% | +59.1% | -0.4% | -8.7% | +1.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +47.6% |
| 2025 | -24.5% |
| 2024 | -30.3% |
| 2023 | -9.7% |
| 2022 | -12.9% |
| 2021 | +5.3% |
| 2020 | +17.8% |
| 2019 | +40.0% |
| 2018 | -5.2% |
| 2017 | -2.0% |
| 2016 | +66.0% |
| 2015 | +25.9% |
| 2014 | -38.1% |
| 2013 | +19.5% |
| 2012 | +45.4% |
| 2011 | +6.7% |
| 2010 | +19.6% |
| 2009 | +40.9% |
| 2008 | +47.5% |
| 2007 | +5.6% |
| 2006 | +19.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 23.9% over that stretch · deepest drop along the way 59.2%, back to its old high 6.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.7% over that stretch · deepest drop along the way 30%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.9% over that stretch · deepest drop along the way 24.9%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.2% | Mar 31, 2025 |
| Vanguard Portfolio Management | 6.04% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 5.2% | Sep 30, 2026 |
| STATE STREET CORPORATION | 4.1% | Mar 31, 2025 |
ETFs with the most weight in SCL
| PSCM Invesco S&P SmallCap Materials ETF | 1.85% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 0.9% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.64% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.5% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.41% |
| OASC OneAscent Small Cap Core ETF | 0.41% |
| FVD First Trust Value Line Dividend Index Fund | 0.38% |
| ETHO Amplify Etho Climate Leadership U.S. ETF | 0.3% |
What could go wrong
- Plant accidents, floods and shutdowns. Chemical plants face fires, spills and weather damage. A 2024 flood disrupted Stepan's Millsdale plant in Elwood, Illinois. Some products are made at only one site, and insurance may not cover every loss.
- Customers could reformulate away from its products. Customers may change recipes or adopt new technology that uses less of Stepan's chemicals. Surfactants were 71.4% of fiscal 2025 revenue, so lost demand there would hurt. New products may not catch on.
- Raw material and energy price swings. Stepan's raw materials are petroleum- or plant-based, and its plants run on electricity and natural gas. Price spikes or shortages raise costs, and operating profit was just 3.4% of sales in fiscal 2025.
- Tighter chemical rules could force costly changes. Stepan must follow strict chemical laws, including the Superfund cleanup law and Europe's REACH. Tighter limits can force costly plant changes, as 1,4-dioxane rules for consumer products did, or end some products.
- Restructuring and big projects may disappoint. Large plant projects can run over budget, finish late or add capacity that isn't needed. Stepan announced restructuring or exit costs in February and July 2026, and the expected savings may not fully arrive.
- Significant debt and refinancing needs. Stepan had about $647 million of debt and $128 million of cash as of June 30, 2026. Refinancing, higher rates or a credit-rating downgrade could raise borrowing costs and limit flexibility.
Recent events
- Quarterly results released; Other company announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Restructuring or exit costs; Executive or board change; Other company announcement
- Shareholder vote results
- Quarterly results released; Other company announcement
- Restructuring or exit costs; Investor presentation or announcement
- Quarterly results released; Other company announcement
- Executive or board change
- Other company announcement
For income and retirement investors
Stepan has raised its regular dividend at least 9 years in a row through fiscal 2025, and the true streak may be longer. Dividends per share rose from $1.13 in fiscal 2020 to $1.55 in fiscal 2025, about 6.5% a year. The yield was 2.34% as of October 28, 2026. Coverage is thin. Dividends equaled 74.7% of fiscal 2025 earnings and 138.1% of free cash flow (the cash left after running and investing in the business), so they exceeded that cash. Buybacks totaled $41.9 million over fiscal 2021–2025, with none recorded after fiscal 2022.
In the 2008 crisis, the shares fell 59.2% but regained their prior high by September 2009. They dropped 30% in the 2020 COVID crash and recovered within a week of the low. After falling 24.9% in the 2022 bear market, they had not regained their early-2022 high as of October 28, 2026. A single stock like Stepan carries more risk than a diversified fund.
Questions investors ask
How does Stepan make money?
Stepan makes money by selling chemicals to other manufacturers rather than to shoppers. Surfactants are the cleaning and foaming ingredients in detergents, shampoos and toothpaste. They brought in 71.4% of its $2.33 billion of revenue in fiscal 2025. Polymers, used in foam insulation for buildings and in coatings and adhesives, added 25.1%. Specialty Products, for food, flavorings, supplements and medicines, added 3.5%. Margins are slim: net income was $46.9 million, or about 2% of sales.
Does Stepan raise its dividend every year?
Yes, through fiscal 2025. Stepan's regular dividend rose in every year of the available SEC data, a streak of at least 9 straight increases, and the true streak may be longer. Dividends per share grew from $1.13 in fiscal 2020 to $1.55 in fiscal 2025, about 6.5% a year. One caution: fiscal 2025 dividends equaled 138.1% of free cash flow. That means the company paid out more than the cash its business generated after investment that year. Past increases do not guarantee future ones.
What is Stepan's dividend yield?
Stepan's dividend yield was 2.34% as of October 28, 2026. Yield is the yearly dividend divided by the share price, so it shifts as the price moves. Regular dividends were $1.55 a share in fiscal 2025, equal to 74.7% of that year's earnings. When a company pays out that much of its profit, it has less left to reinvest or to cushion a weak year.
How has Stepan (SCL) stock performed?
Weak over five years but strong over one, as of October 28, 2026. The stock was up 59.1% over one year and 47.7% year to date, but down 37% in total over five years. It fell in every calendar year from 2022 through 2025, including drops of 30.3% in 2024 and 24.5% in 2025. Over that stretch, diluted earnings per share fell from $6.38 in fiscal 2022 to $2.05 in fiscal 2025.
How much debt does Stepan have?
Stepan had $647.4 million of total debt and $128.2 million of cash and investments as of June 30, 2026. That means debt was about $519 million more than cash. Shareholders' equity (assets minus liabilities) was $1.21 billion. On September 28, 2026, the company reported a major agreement and a new debt or financial obligation. Its annual report warns that heavy debt, refinancing needs or credit-rating downgrades could hurt the business.