Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.

Company profile
Ticker
SCL
Exchange
Website
CEO
Frank Stepan
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Procter & Gamble • Ecolab • Church & Dwight • Clancy • Swisher Hygiene • Givbux • Unilever • Unilever ...
SEC CIK
Corporate docs
Subsidiaries
North Pier Insurance Company • Stepan Asia Pte. Ltd. • Stepan Canada Sales Inc. • Stepan CDMX, S. de R.L. de C.V. • Stepan Chemical (Nanjing) Co., Ltd. • Stepan Chemical (Shanghai) Co., Ltd. • Stepan Colombia S.A.S. • Stepan Deutschland GmbH • Stepan Europe S.A.S. • Stepan Holdings Asia Pte. Ltd. ...
IRS number
361823834
SCL stock data
News
Calendar
5 May 22
26 Jun 22
31 Dec 22
Financial summary
Quarter (USD) | Mar 22 | Dec 21 | Sep 21 | Jun 21 | |
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Revenue | |||||
Cost of revenue | |||||
Operating income | |||||
Operating margin | |||||
Net income | |||||
Net profit margin | |||||
Cash on hand | |||||
Change in cash | |||||
Diluted EPS |
Annual (USD) | Dec 21 | Dec 20 | Dec 19 | Dec 18 | |
---|---|---|---|---|---|
Revenue | |||||
Cost of revenue | |||||
Operating income | |||||
Operating margin | |||||
Net income | |||||
Net profit margin | |||||
Cash on hand | |||||
Change in cash | |||||
Diluted EPS |
Cash burn rate (est.) | Burn method: Change in cash | Burn method: Operating income | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 236.04M | 236.04M | 236.04M | 236.04M | 236.04M | 236.04M |
Cash burn (monthly) | (no burn) | (no burn) | (no burn) | (no burn) | 6.98M | (no burn) |
Cash used (since last report) | n/a | n/a | n/a | n/a | 20.02M | n/a |
Cash remaining | n/a | n/a | n/a | n/a | 216.02M | n/a |
Runway (months of cash) | n/a | n/a | n/a | n/a | 31.0 | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
26 Apr 22 | Lorinda Burgess | Common Stock | Grant | Acquire A | No | No | 0 | 1,249 | 0 | 2,009 |
26 Apr 22 | Dearth Randall S. | Common Stock | Grant | Acquire A | No | No | 0 | 1,249 | 0 | 9,475 |
26 Apr 22 | Lawton Gregory E | Common Stock | Grant | Acquire A | No | No | 0 | 1,249 | 0 | 16,963 |
26 Apr 22 | Reed Jan Stern | Common Stock | Grant | Acquire A | No | No | 0 | 1,249 | 0 | 8,690 |
26 Apr 22 | F Quinn Stepan JR | Common Stock | Grant | Acquire A | No | No | 0 | 1,249 | 0 | 187,628.465 |
Institutional ownership, Q1 2022
76.7% owned by funds/institutions
13F holders | Current |
---|---|
Total holders | 202 |
Opened positions | 22 |
Closed positions | 28 |
Increased positions | 72 |
Reduced positions | 72 |
13F shares | Current |
---|---|
Total value | 1.69B |
Total shares | 17.15M |
Total puts | 8K |
Total calls | 17.1K |
Total put/call ratio | 0.5 |
Largest owners | Shares | Value |
---|---|---|
BLK Blackrock | 3.73M | $368.95M |
Vanguard | 2.48M | $245.09M |
HighTower Advisors | 1.99M | $196.65M |
STT State Street | 1.73M | $170.96M |
Dimensional Fund Advisors | 1.01M | $99.59M |
WHG Westwood | 624.93K | $61.75M |
Geode Capital Management | 367.86K | $36.35M |
Southernsun Asset Management | 353.92K | $34.97M |
BK Bank Of New York Mellon | 342.19K | $33.81M |
NTRS Northern Trust | 294.82K | $29.13M |
Financial report summary
?Risks
- The COVID-19 pandemic has had and could continue to have a material adverse impact on our business, financial position, results of operations and cash flows.
- Chemical manufacturing is inherently hazardous and may result in accidents or may require planned or unplanned production slowdowns or shutdowns, which may disrupt our operations or expose us to significant losses or liabilities that may have a material impact on our business, financial position, results of operations and cash flows.
- The Company relies heavily on third-party transportation to deliver raw materials to Company manufacturing facilities and ship products to Company customers. Disruptions in transportation or significant changes in transportation costs have affected and could continue to affect the Company’s business, financial position, results of operations and cash flows.
- Conflicts, military actions, terrorist attacks and general instability, particularly in certain energy-producing nations, along with increased security regulations related to our industry, could adversely affect the Company’s business.
- Customer product reformulations or new technologies can reduce the demand for the Company’s existing products, and the Company may not be successful in developing or introducing new products.
- To the extent the Company seeks acquisition opportunities, it may not be able to make acquisitions of suitable candidates or integrate acquisitions successfully.
- The Company faces significant global competition in each of its operating segments. If the Company cannot successfully compete in the marketplace, its business, financial position, results of operations and cash flows may be materially and adversely affected.
- Downturns in certain industries, in some cases driven by consumer preferences, and general economic downturns may have an adverse effect on the Company’s business, financial position, results of operations and cash flows.
- If the Company is unable to protect its intellectual property rights, the Company’s ability to compete may be negatively impacted.
- The Company is subject to a variety of environmental, health and safety and product registration laws dealing with the production and sale of chemicals that could require us to incur additional costs or to reformulate or discontinue certain of our products, or expose us to liability or enforcement actions.
- Various liability claims could materially and adversely affect the Company’s financial position, operating results and cash flows.
- The Company’s failure to comply with the anti-corruption laws of the United States and various international jurisdictions could negatively impact its reputation and results of operations.
- The international scope of the Company’s operations and corporate structure may expose the Company to potentially adverse tax consequences.
- Fluctuations in foreign currency exchange rates could affect Company financial results.
- The Company could be adversely affected by downgrades to its credit ratings or disruptions in its ability to access well-functioning credit markets.
- The Company has a significant amount of indebtedness and may incur additional indebtedness, or need to refinance existing indebtedness, in the future, which may adversely affect the Company’s business, financial position, results of operations and cash flows.
- The Company relies extensively on information technology (IT) systems to conduct its business. Interruption of, damage to or compromise of the Company’s IT systems and failure to maintain the integrity of customer, colleague or Company data could harm the Company’s reputation and have an adverse effect on the Company’s business, financial position, results of operations and cash flows.
- The Company’s success depends on its executive management and other key personnel.
Management Discussion
- Net income attributable to the Company in the first quarter of 2022 increased 10 percent to $44.8 million, or $1.93 per diluted share, from $40.6 million, or $1.74 per diluted share, in the first quarter of 2021. Adjusted net income declined four percent to $40.7 million, or $1.76 per diluted share, from $42.4 million, or $1.82 per diluted share in 2021 (see the “Reconciliation of Non-GAAP Adjusted Net Income and Diluted Earnings per Share” section of this MD&A for a reconciliation between reported net income attributable to the Company and reported earnings per diluted share and non-GAAP adjusted net income and adjusted earnings per diluted share). Below is a summary discussion of the major factors leading to the changes in net sales, expenses and income in the first quarter of 2022 compared to the first quarter of 2021. A detailed discussion of segment operating performance for the first quarter of 2022 compared to the first quarter of 2021 follows the summary.
Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
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New words:
addressing, announced, built, challenged, channel, classified, conflict, COVID, Dioxane, dissolved, external, floating, Identification, incorporation, laundry, lifted, master, noncash, NYL, Prudential, resumed, shelf, strong, swap, Ukraine, unpaid
Removed:
achieved, actively, Additionally, adjustment, amortization, amortized, anionic, annually, approach, approved, arrive, ASC, assigned, assumption, attribution, attrition, auto, bind, brand, calculate, charge, Clara, Clariant, cliff, close, commencement, commensurate, comparative, complex, complexity, Considerable, consideration, consulting, correlated, created, criteria, de, declared, deductible, deemed, degradation, delivered, denominated, depreciation, determine, discounted, EBITDA, Ecatepec, employed, estate, evaluated, exist, experienced, exposure, feature, fifty, finite, forced, forecasted, forma, freezing, frequently, fully, German, gradual, granted, greater, half, highly, IBR, identifiable, impairment, implicit, incomplete, incremental, indefinite, inherent, initial, integrated, laboratory, land, life, location, manage, marketing, method, Mexican, mirror, multiple, Nanjing, NatSurFact, Northbrook, obtainable, office, operated, operational, original, overhead, paragraph, performed, peso, preliminary, principle, pro, proprietary, provisional, public, published, qualitative, quantitative, quantity, real, receipt, recording, recover, recoverable, recovery, relating, relevant, renewable, requiring, reside, rhamnolipid, ROU, royalty, Santa, scheduled, serve, shipped, significantly, Simplifying, situation, small, specifically, stop, storage, strategy, sulfonation, sum, sustainability, tank, technological, tested, testing, trade, traded, trailer, treated, type, typical, uncertainty, valuation, vary, vested, wash, water, weather, WWTP
Financial reports
Current reports
8-K
Departure of Directors or Certain Officers
3 May 22
8-K
Stepan Reports First Quarter Results
26 Apr 22
8-K
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
2 Mar 22
8-K
Stepan Reports Fourth Quarter Results and Record Full Year 2021 Earnings
17 Feb 22
8-K
Stepan Company Announces CEO Succession Plan
17 Feb 22
8-K
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
13 Dec 21
8-K
Stepan Reports Third Quarter Results and Record Nine Month Earnings
20 Oct 21
8-K
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
24 Sep 21
8-K
Stepan Reports Record Second Quarter Results and Record First Half Earnings
28 Jul 21
8-K
Stepan Announces $100 Million Notes Offerings
14 Jun 21
Registration and prospectus
S-8
Registration of securities for employees
26 Apr 22
25-NSE
Exchange delisting
8 Aug 13
25
Voluntary exchange delisting
24 Mar 13
S-8 POS
Registration of securities for employees (post-effective amendment)
26 Feb 13
S-8 POS
Registration of securities for employees (post-effective amendment)
26 Feb 13
S-8
Registration of securities for employees
2 May 11
S-8
Registration of securities for employees
26 Apr 06
S-8
Registration of securities for employees
21 Jun 00
8-A12B
Registration of securities on exchange
3 Mar 96
S-8
Registration of securities for employees
5 Jan 95
Other
SD
Conflict minerals disclosure
26 May 22
SD
Conflict minerals disclosure
28 May 21
SD
Conflict minerals disclosure
29 May 20
SD
Conflict minerals disclosure
30 May 19
SD
Conflict minerals disclosure
30 May 18
SD
Conflict minerals disclosure
30 May 17
SD
Conflict minerals disclosure
30 May 16
SD
Conflict minerals disclosure
26 May 15
SD
Conflict minerals disclosure
29 May 14
UPLOAD
Letter from SEC
8 Nov 10
Ownership
4
STEPAN / Joaquin Delgado ownership change
28 Apr 22
4
STEPAN / EDWARD J WEHMER ownership change
28 Apr 22
4
STEPAN / F QUINN STEPAN JR ownership change
28 Apr 22
4
STEPAN / JAN STERN REED ownership change
28 Apr 22
4
STEPAN / GREGORY E LAWTON ownership change
28 Apr 22
4
STEPAN / Randall S. Dearth ownership change
28 Apr 22
4
STEPAN / Lorinda Burgess ownership change
28 Apr 22
4
STEPAN / Scott R. Behrens ownership change
27 Apr 22
4
STEPAN / Richard Finn Stepan ownership change
7 Mar 22
4
STEPAN / Luis Rojo ownership change
7 Mar 22
Patents
Utility
Reactive Surfactants
9 Jun 22
Processes for making reactive surfactants are disclosed.
Utility
Systems and Methods for Computer Vision Assisted Foam Board Processing
24 Mar 22
Methods and systems for manufacturing a foam board system are disclosed.
Utility
Esteramine Compositions
17 Mar 22
Compositions comprising at least one esteramine active are disclosed in which the esteramine provides conditioning, softening, and/or cleaning properties.
Utility
Friction reducer for hydraulic fracturing
15 Mar 22
Compositions comprising an acrylamide polymer emulsion and a nonionic surfactant suitable for use as friction reducers for hydraulic fracturing are disclosed.
Utility
Polyol-epoxide Polymers for NVH Damping Applications
10 Feb 22
Noise, vibration, or harshness (NVH) properties of an industrial or consumer product are reduced by incorporating therein an effective amount of a polyether- or polyester-epoxide polymer (PEEP) composition.
Transcripts
2022 Q1
Earnings call transcript
26 Apr 22
2021 Q4
Earnings call transcript
17 Feb 22
2021 Q3
Earnings call transcript
20 Oct 21
2021 Q2
Earnings call transcript
28 Jul 21
2021 Q1
Earnings call transcript
27 Apr 21
2020 Q4
Earnings call transcript
18 Feb 21
2020 Q3
Earnings call transcript
21 Oct 20
2020 Q2
Earnings call transcript
22 Jul 20
2020 Q1
Earnings call transcript
21 Apr 20
2019 Q4
Earnings call transcript
20 Feb 20
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