Stepan Company (SCL) Analyzing Financial Health

Publicly-traded company Stepan Company (NYSE:SCL) had a closing price of $94.43 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $104.50, this means that the stock is underpriced by 9.64%. In the past 52 weeks the company’s stock price has moved within the range of $69.17 to $101.84.

This particular stock’s 5-day moving average is 97.19, its 20-day moving average is 97.94 and its 100-day moving average is 96.07. Stepan Company (SCL) currently has 23.03M shares outstanding, which means that its market capitalization is $2.17B.

The Details: Stepan Company (SCL) Financial Health

There are a number of indicators we can consider when wondering about a potential stock’s financial health. Looking at a company’s profit margin, for example, tells us how much of its sales revenue it keeps in earnings – and it is calculated by taking net income and dividing it by net sales. SCL currently has a profit margin of 5.70%.

Checking out a company’s operating margin is also useful, as it tells us how much profit is retained after considering operating costs and depreciation. Stepan Company (SCL) has an operating margin of 7.40%.

Return on Assets is a number, expressed as a percentage that tells us how well a publicly-traded company is using its current assets to generate revenue. The higher the percentage, the better a company is using its assets to turn a profit. At the moment, Stepan Company Return on Assets is 7.10%.

What Does Wall Street Say about Company?

When choosing stocks, many investors search for what Wall Street professionals think about the company first – like what the average rating is. At the moment, the average analyst rating for SCL is Overweight. Out of 3 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 2 rated it hold, and 1 rated it a Buy.

Understanding Profitability at Stepan Company (SCL)

Taking a look at a public company’s Earnings per Share (EPS) is a good way of evaluating its profitability. In the most recent financial results released by Stepan Company, for the quarter ending on 12/2019, the company posted EPS of 0.88. The average estimate of Wall Street analysts had projected 0.90.

Wall Street analysts, on average, are forecasting the company’s EPS to be 0.91, compared to 1.02 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 3 analysts is 440.53M – compared to 466.66M posted in the year-ago period.