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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Stepan Co's annualizedNet Income for the quarter that ended in Mar. 2026 was €-143 Mil.
Stepan Co's average Total Assets over the quarter that ended in Mar. 2026 was €2,016 Mil. Therefore, Stepan Co's annualized ROA % for the quarter that ended in Mar. 2026 was -7.11%.
The historical rank and industry rank for Stepan Co's ROA % or its related term are showing as below:
FRA:96S'
s ROA % Range Over the Past 10 Years
Min: -0.11 Med: 6.66 Max: 7.61
Current: -0.11
During the past 13 years, Stepan Co's highest ROA % was 7.61%. The lowest was -0.11%. And the median was 6.66%.
FRA:96S's ROA % is ranked worse than 72.78% of 1613
companies
in the Chemicals industry
Industry Median: 2.98
vs FRA:96S: -0.11
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Stepan Co ROA % Related Terms
Stepan Co ROA % Historical Data
* Premium members only.
The historical data trend for Stepan Co's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's ROA % distribution charts can be found below:
* The bar in red indicates where Stepan Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Stepan Co (FRA:96S) has a ROA % of -7.11% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Stepan Co and its competitors. According to the industry distribution chart, Stepan Co ranks #1174 out of 1613 companies in the Chemicals industry, placing it in the top 72.8%.
Is Stepan Co's ROA % too high?
Stepan Co's current ROA % is -7.11%. Based on the distribution chart, Stepan Co ranks #1174 out of 1613 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 ROA % compare to STDN and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #1174 out of 1613 companies for ROA %. This places Stepan Co in the lower half of its industry. The industry median ROA % is 2.98. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.98, based on 1,613 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median ROA % is 2.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current ROA % is -7.11%. 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 ROA % of -7.11%. 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 ROA % is -7.11%. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Stepan Co (FRA:96S), the current ROA % is -7.11% 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:
ROA %: -7.11%
GF Value™: €62.76 vs. price of €56.50 (10% below fair value)
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
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