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Stepan CoSCL -0.40%79 Beneish M-Score is -2.65 as of Jul. 20, 2026. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $71.03 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,526 Chemicals companies, Stepan Co ranks better than 63.04% on this metric.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Stepan Co's Beneish M-Score or its related term are showing as below:
SCL'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.68 Max: -1.54
Current: -2.65
During the past 13 years, the highest Beneish M-Score of Stepan Co was -1.54. The lowest was -2.91. And the median was -2.68.
Stepan Co Beneish M-Score Related Terms
Stepan Co Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Stepan Co's Beneish M-Score 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: Beneish M-Score Comparison
For the Specialty Chemicals subindustry, Stepan Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Stepan Co's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Stepan Co for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 0.9422
+
0.528 * 1.1283
+
0.404 * 1.0245
+
0.892 * 1.0546
+
0.115 * 0.8463
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9229
+
4.679 * -0.050972
-
0.327 * 0.9957
=
-2.65
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(113.863 / (113.863 + 1273.148))
/
(129.718 / (129.718 + 1207.638))
=
0.082092
/
0.096996
=
0.8463
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(-14.222 - -53.16
-
157.874)
/
2333.337
=
-0.050972
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Stepan Co has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.
Stepan Co (SCL) has a Beneish M-Score of -2.65 as of Jul. 20, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Stepan Co and its competitors. According to the industry distribution chart, Stepan Co ranks #564 out of 1526 companies in the Chemicals industry, placing it in the top 37%.
Is Stepan Co's Beneish M-Score too high?
Stepan Co's current Beneish M-Score is -2.65. Based on the distribution chart, Stepan Co ranks #564 out of 1526 companies in the Chemicals industry, which is above the industry midpoint. 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 Beneish M-Score compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #564 out of 1526 companies for Beneish M-Score. This puts Stepan Co in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Chemicals company?
A good Beneish M-Score depends on the Chemicals industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Stepan Co and its competitors. Stepan Co's current Beneish M-Score is -2.65. 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 $71.03, compared to a current price of $58.40 — trading 17.8% below its estimated fair value. The current Beneish M-Score is -2.65. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Stepan Co (SCL), the current Beneish M-Score is -2.65 as of Jul. 20, 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 $58.40 is trading 17.8% below its estimated GF Value™ of $71.03.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
Beneish M-Score: -2.65
GF Value™: $71.03 vs. price of $58.40 (17.8% below fair value)
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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