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Stepan CoSCL -1.03%79 Cash Ratio is 0.20 as of Mar. 2026, which is 44% below its 10-year median of 0.36. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $71.02 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,580 Chemicals companies, Stepan Co ranks worse than 75.25% on this metric.
Stepan Co has a Cash Ratio of 0.20. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Stepan Co's Cash Ratio or its related term are showing as below:
SCL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.36 Max: 0.98
Current: 0.2
During the past 13 years, Stepan Co's highest Cash Ratio was 0.98. The lowest was 0.13. And the median was 0.36.
SCL's Cash Ratio is ranked worse than 75.25% of 1580
companies
in the Chemicals industry
Industry Median: 0.5
vs SCL: 0.20
Stepan Co (NYSE:SCL) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Stepan Co Cash Ratio Related Terms
Stepan Co Cash Ratio Historical Data
* Premium members only.
The historical data trend for Stepan Co's Cash Ratio 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.
For the Specialty Chemicals subindustry, Stepan Co's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Stepan Co's Cash Ratio falls into.
* 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 Ratio of 0.20 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Stepan Co and its competitors. This is 44% below median its historical median of 0.36. Over the past decade, Stepan Co's Cash Ratio has ranged from 0.13 to 0.98. According to the industry distribution chart, Stepan Co ranks #1189 out of 1580 companies in the Chemicals industry, placing it in the top 75.3%.
Is Stepan Co's Cash Ratio too high?
Stepan Co's current Cash Ratio of 0.20 is 44% below median its 10-year median of 0.36. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.98. The Chemicals industry median Cash Ratio is 0.50. Stepan Co's value of 0.20 is 60% below this industry median. Based on the distribution chart, Stepan Co ranks #1189 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. 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 Ratio compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #1189 out of 1580 companies for Cash Ratio. This places Stepan Co in the lower half of its industry. The industry median Cash Ratio is 0.50. Stepan Co's value of 0.20 is 60% below this benchmark. Historically, Stepan Co's own Cash Ratio has ranged from 0.13 to 0.98 over the past decade. While the company's 10-year median is 0.36 vs. the industry median of 0.50, Stepan Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Chemicals company?
The median Cash Ratio among Chemicals companies is 0.50, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current Cash Ratio of 0.20 is 60% 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 Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median Cash Ratio is 0.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current Cash Ratio is 0.20, which is 44% below median its own 10-year median of 0.36. 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 $71.02, compared to a current price of $58.63 — trading 17.4% below its estimated fair value. The current Cash Ratio is 0.20, which is 44% below median its 10-year median of 0.36 and 60% below the Chemicals industry median of 0.50. Stepan Co's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Stepan Co (SCL), the current Cash Ratio is 0.20 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 $58.63 is trading 17.4% below its estimated GF Value™ of $71.02.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
Cash Ratio: 0.20 (44% below median its 10-year median of 0.36)
GF Value™: $71.02 vs. price of $58.63 (17.4% below fair value)
Industry Position: 60% below the Chemicals median (#1189 of 1580)
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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