Stepan Co cash flow to debt ratio of 21.40% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Stepan Co's free cash flow has decreased 35.41% from $39.28M last year to $25.37M, signaling decreasing performance

Stepan Co's debt to equity ratio is 0.58, which means that the company's assets are healthy financed, signaling financial stability.

Stepan Co's debt has decreased relative to shareholder equity from 0.58 last year to 0.58 today, signaling strengthened financials

Stepan Co has a net debt to EBITDA ratio of 2.63x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Stepan Co's interest coverage ratio of 4.00 indicates that earnings with good margin can cover interest payments on company debt

Stepan Co's profit margin has decreased (104.72%) in the last year from 2.31% to -0.11%, signaling decreasing performance

Stepan Co's short-term assets of $858.96M exceed its short-term liabilities of $666.49M

Stepan Co's return on assets of -0.11% is lower than the 5.00% threshold, indicating inefficient asset utilization

Stepan Co's return on equity of -0.22%, is lower than 15.00%, indicating bad performance

Stepan Co's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Stepan Co had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Stepan Co has positive free cash flow, indicating the company generates cash after capital expenditures

Stepan Co has a free cash flow yield of 1.72%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Stepan Co's yearly earnings has decreased 6.90% since last year from $50.37M to $46.90M, signaling decreasing performance

Stepan Co's yearly revenue has increased 6.96% since last year from $2.18B to $2.33B, signaling increasing performance

ROIC 4.14% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Stepan Co's 3-year revenue CAGR of -5.61% is negative, indicating declining revenue over the past 3 years

Stepan Co had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Stepan Co had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Stepan Co has insufficient data to evaluate this check.

Stepan Co has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Stepan Co is overvalued relative to its fair value price of 39.57 based on EBITDA multiple model

Stepan Co has an EV/EBITDA ratio of 9.57x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Stepan Co is overvalued relative to its fair value price of 46.93 based on Earnings Fair Value model

Stepan Co's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Stepan Co has a price-to-book ratio of 1.23x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Stepan Co has a price-to-sales ratio of 0.61x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue