Added to YB: 2026-09-01
Pitch date: 2026-08-30
SCL [neutral]
Stepan Company
-0.6%
current return
Author Info
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Company Info
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally.
Market Cap
$1.4B
Pitch Price
$62.61
Price Target
N/A
Dividend
2.52%
EV/EBITDA
8.36
P/E
-522.82
EV/Sales
0.83
Sector
Chemicals
Category
turnaround
America's Only Legal Cocaine Producer Also Supplying a Soda Giant
SCL (overview): Stepan is a specialty-chemicals turnaround trading at roughly 19x forward earnings and 7.8x forward EV/EBITDA. Q2 sales rose 15% and adjusted EBITDA 45%, supported by volume and margin recovery plus Project Catalyst savings, while Pasadena reached 75-80% utilization. The unique coca-leaf license is only a small side business. Risks include an estimated $5-10M of adjusted EBITDA tied to pre-buying, restructuring execution and a $58M working-capital outflow.
Read full article (8 min)