Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Stepan CoFRA:96S -1.74%79 Interest Coverage is 3.16 as of Mar. 2026, which is 72% below its 10-year median of 11.39. GuruFocus rates FRA:96S with a GF Score™ of 79/100 and a GF Value™ of €62.76. The stock has 10 warning signs investors should review. Among 1,238 Chemicals companies, Stepan Co ranks worse than 74.72% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Stepan Co's
Operating Income
for the
three
months ended in Mar. 2026 was €14 Mil. Stepan Co's Interest Expense for the
three
months ended in Mar. 2026 was €-4 Mil.
Stepan Co's interest coverage for the quarter that ended in Mar. 2026 was 3.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Stepan Co's Interest Coverage or its related term are showing as below:
FRA:96S'
s Interest Coverage Range Over the Past 10 Years
Min: 2.65 Med: 11.39 Max: 24.93
Current: 3.5
FRA:96S's Interest Coverage is ranked worse than 74.72% of 1238
companies
in the Chemicals industry
Industry Median: 10.28
vs FRA:96S: 3.50
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Stepan Co Interest Coverage Related Terms
Stepan Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Stepan Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:96S vs STDN, ECVT, ODC: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Stepan Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Stepan Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:96S) has a Interest Coverage of 3.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stepan Co and its competitors. This is 72% below median its historical median of 11.39. Over the past decade, Stepan Co's Interest Coverage has ranged from 2.65 to 24.93. According to the industry distribution chart, Stepan Co ranks #925 out of 1238 companies in the Chemicals industry, placing it in the top 74.7%.
Is Stepan Co's Interest Coverage too high?
Stepan Co's current Interest Coverage of 3.16 is 72% below median its 10-year median of 11.39. Over the past 10 years, this metric has ranged from a low of 2.65 to a high of 24.93. The Chemicals industry median Interest Coverage is 10.28. Stepan Co's value of 3.16 is 69.3% below this industry median. Based on the distribution chart, Stepan Co ranks #925 out of 1238 companies in the Chemicals industry, which is below the industry midpoint. Overall, Stepan Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Stepan Co's Interest Coverage compare to STDN and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #925 out of 1238 companies for Interest Coverage. This places Stepan Co in the lower half of its industry. The industry median Interest Coverage is 10.28. Stepan Co's value of 3.16 is 69.3% below this benchmark. Historically, Stepan Co's own Interest Coverage has ranged from 2.65 to 24.93 over the past decade. While the company's 10-year median is 11.39 vs. the industry median of 10.28, 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 Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.28, based on 1,238 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current Interest Coverage of 3.16 is 69.3% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current Interest Coverage is 3.16, which is 72% below median its own 10-year median of 11.39. 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?
Stepan Co (FRA:96S) has a current Interest Coverage of 3.16. The stock's GF Value™ is €62.76, compared to a current price of €56.50 — trading 10% below its estimated fair value. The current Interest Coverage is 3.16, which is 72% below median its 10-year median of 11.39 and 69.3% below the Chemicals industry median of 10.28. Stepan Co's overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Stepan Co (FRA:96S), the current Interest Coverage is 3.16 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 (FRA:96S) Overvalued in 2026?
Based on GuruFocus' analysis, Stepan Co stock appears to be undervalued.
The current stock price of €56.50 is trading 10% below its estimated GF Value™ of €62.76.
Key valuation signals for FRA:96S:
Interest Coverage: 3.16 (72% below median its 10-year median of 11.39)
GF Value™: €62.76 vs. price of €56.50 (10% below fair value)
Industry Position: 69.3% below the Chemicals median (#925 of 1238)
No single metric tells the full story. See the FRA:96S 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
Get the complete analysis for FRA:96S
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:96S has been successfully added to your 
