Does STEPAN COMPANY have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores STEPAN COMPANY (SCL) 28.9 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 15, returns on capital 54, balance-sheet safety 23, capital discipline 18.

Is SCL stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $24.75 per share versus a recent price of $58.63 — 137% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has SCL's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 28.9 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

STEPAN COMPANY

SCL · Materials · $1.3B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power15

Median gross margin 16.9% over 10y, stable.

Returns on capital54

Median ROIC 11.9%, above the 9% hurdle in 70% of years.

Balance-sheet safety23

Net debt/EBITDA 2.4x, interest coverage 3x.

Capital discipline18

Owner earnings -5.8%/yr, share count flat.

Margin of safety

Above valueOn sale

137% above value

Owner earnings (normalized): $50.4M
Est. intrinsic value / share: $24.75
Recent price: $58.63
Discount to value: 137% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

18 years of fundamentals

The business, in plain English

STEPAN COMPANY booked $2.3B of revenue in FY2025 in the Materials sector and kept 11.6% of it as gross profit — a thin-margin business by that measure. After every other cost, 2.0% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.3B (FY2009) to $2.3B (FY2025) — about 3.8% a year compounded over 16 years.

It earned 3.5% on invested capital in FY2025, with a median of 13.1% across 17 filed years. The Returns on Capital filter above scores it 54/100.

The balance sheet carried $626.7M of total debt in FY2025 against $50.4M of owner earnings — roughly 12.4 years of owner earnings to retire it all. Balance-Sheet Safety scores it 23/100.

The share count rose 120.5% between FY2011 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 18/100.

Put together: Returns on Capital is the strongest of the four filters (54/100) and Pricing Power the weakest (15/100), which is how SCL lands at 29/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$2.3B FY2025

Gross marginRevenue kept after cost of goods11.6% FY2025

Return on invested capitalOperating profit on the capital employed3.5% FY2025

Owner earningsCash an owner could take out$50.4M FY2025

Gaps in a line mean that item isn’t in SCL’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale28.9 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — SCL has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Materials context

#149 of 214 scored Materials companies, ranked by Moat Score.

Nearest peers by Moat Score

#147HGYN HONG YUAN HOLDING GROUP29.9 out of 100, No moatNo moat
#148HOFT HOOKER FURNISHINGS CORPORATION29.0 out of 100, No moatNo moat
#150HXL HEXCEL CORP /DE/28.8 out of 100, No moatNo moat
#151AVD AMERICAN VANGUARD CORPORATION28.3 out of 100, No moatNo moat

Compare SCL with its nearest peers →All Materials companies on the Index →

Common questions about SCL

Does STEPAN COMPANY have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores STEPAN COMPANY (SCL) 28.9 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 15, returns on capital 54, balance-sheet safety 23, capital discipline 18.
Is SCL stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $24.75 per share versus a recent price of $58.63 — 137% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has SCL's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 28.9 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell SCL. See the disclaimer.