Stepan CoSCL -2.16%79 Return-on-Tangible-Asset is -7.48% as of Mar. 2026. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $70.82 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,609 Chemicals companies, Stepan Co ranks worse than 74.83% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Stepan Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $-166 Mil. Stepan Co's average total tangible assets for the quarter that ended in Mar. 2026 was $2,215 Mil. Therefore, Stepan Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was -7.48%.
The historical rank and industry rank for Stepan Co's Return-on-Tangible-Asset or its related term are showing as below:
SCL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.63 Med: 6.94 Max: 7.83
Current: -0.63
During the past 13 years, Stepan Co's highest Return-on-Tangible-Asset was 7.83%. The lowest was -0.63%. And the median was 6.94%.
SCL's Return-on-Tangible-Asset is ranked worse than 74.83% of 1609
companies
in the Chemicals industry
Industry Median: 3.07
vs SCL: -0.63
Stepan Co (NYSE:SCL) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Stepan Co Return-on-Tangible-Asset Related Terms
Stepan Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Stepan Co's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Specialty Chemicals subindustry, Stepan Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Stepan Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of -7.48% mean?
Stepan Co (SCL) has a Return-on-Tangible-Asset of -7.48% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Stepan Co and its competitors. According to the industry distribution chart, Stepan Co ranks #1204 out of 1609 companies in the Chemicals industry, placing it in the top 74.8%.
Is Stepan Co's Return-on-Tangible-Asset too high?
Stepan Co's current Return-on-Tangible-Asset is -7.48%. Based on the distribution chart, Stepan Co ranks #1204 out of 1609 companies in the Chemicals industry, which is below 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 Return-on-Tangible-Asset compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #1204 out of 1609 companies for Return-on-Tangible-Asset. This places Stepan Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.07. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.07, based on 1,609 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current Return-on-Tangible-Asset is -7.48%. 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 $70.82, compared to a current price of $55.29 — trading 21.9% below its estimated fair value. The current Return-on-Tangible-Asset is -7.48%. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Stepan Co (SCL), the current Return-on-Tangible-Asset is -7.48% 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 $55.29 is trading 21.9% below its estimated GF Value™ of $70.82.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
Return-on-Tangible-Asset: -7.48%
GF Value™: $70.82 vs. price of $55.29 (21.9% 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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