Stepan Co's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 62.01.
Stepan Co's Days Inventory for the
three
months ended in Mar. 2026 was 49.7.
Stepan Co's Days Payable for the
three
months ended in Mar. 2026 was 46.28.
Therefore, Stepan Co's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 65.43.
Stepan Co (NYSE:SCL) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Stepan Co Cash Conversion Cycle Related Terms
Stepan Co Cash Conversion Cycle Historical Data
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The historical data trend for Stepan Co's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SCL vs LWLG, ECVT, ODC: Cash Conversion Cycle Comparison
For the Specialty Chemicals subindustry, Stepan Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Stepan Co Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Stepan Co's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Stepan Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Stepan Co (SCL) has a Cash Conversion Cycle of 65.43 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Stepan Co and its competitors.
Is Stepan Co's Cash Conversion Cycle too high?
Stepan Co's current Cash Conversion Cycle is 65.43. The Chemicals industry median Cash Conversion Cycle is 89.20. Stepan Co's value of 65.43 is 26.6% below this industry median. Overall, Stepan Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Stepan Co's Cash Conversion Cycle compare to LWLG and ECVT?
Stepan Co's Cash Conversion Cycle of 65.43 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.20. Stepan Co's value of 65.43 is 26.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.20, based on 1,581 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current Cash Conversion Cycle of 65.43 is 26.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current Cash Conversion Cycle is 65.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stepan Co stock overvalued right now?
Based on GuruFocus' analysis, Stepan Co (SCL) is currently considered Modestly Undervalued. The stock's GF Value™ is $70.60, compared to a current price of $54.65 — trading 22.6% below its estimated fair value. The current Cash Conversion Cycle is 65.43 and 26.6% below the Chemicals industry median of 89.20. Stepan Co's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Stepan Co (SCL), the current Cash Conversion Cycle is 65.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Stepan Co (SCL) Overvalued in 2026?
Based on GuruFocus' analysis, Stepan Co stock appears to be undervalued.
The current stock price of $54.65 is trading 22.6% below its estimated GF Value™ of $70.60.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
Cash Conversion Cycle: 65.43
GF Value™: $70.60 vs. price of $54.65 (22.6% below fair value)
Industry Position: 26.6% below the Chemicals median
No single metric tells the full story. See the SCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stepan Co manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on product type. The surfactants segment, which generates the majority of revenue, sells cleaning agents used in detergents, shampoos, body wash, fabric softeners, toothpastes, and other personal-care products. The polymers segment sells polyurethane used to manufacture rigid foam for thermal insulation, as well as phthalic anhydride used to make plastic components for the construction, automotive, and boating industries. The specialty products segment sells chemicals used in food and flavoring. The majority of Stepan's revenue comes from the United States, followed by France, Poland, the United Kingdom, Brazil, Mexico, and other countries.
79GF Score
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