Stepan CoSCL +1.68%79 ROC (Joel Greenblatt) % is 3.95% as of Mar. 2026, which is 76% below its 10-year median of 16.35. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $70.74 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,606 Chemicals companies, Stepan Co ranks worse than 66.38% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Stepan Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.95%.
The historical rank and industry rank for Stepan Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SCL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.13 Med: 16.35 Max: 20.51
Current: 4.48
During the past 13 years, Stepan Co's highest ROC (Joel Greenblatt) % was 20.51%. The lowest was 4.13%. And the median was 16.35%.
SCL's ROC (Joel Greenblatt) % is ranked worse than 66.38% of 1606
companies
in the Chemicals industry
Industry Median: 9.38
vs SCL: 4.48
Stepan Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -28.20% per year.
Stepan Co (NYSE:SCL) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Stepan Co's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, Stepan Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Stepan Co's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 3.95% mean?
Stepan Co (SCL) has a ROC (Joel Greenblatt) % of 3.95% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Stepan Co and its competitors. This is 76% below median its historical median of 16.35. Over the past decade, Stepan Co's ROC (Joel Greenblatt) % has ranged from 4.13 to 20.51. According to the industry distribution chart, Stepan Co ranks #1066 out of 1606 companies in the Chemicals industry, placing it in the top 66.4%.
Is Stepan Co's ROC (Joel Greenblatt) % too high?
Stepan Co's current ROC (Joel Greenblatt) % of 3.95% is 76% below median its 10-year median of 16.35. Over the past 10 years, this metric has ranged from a low of 4.13 to a high of 20.51. The Chemicals industry median ROC (Joel Greenblatt) % is 9.38. Stepan Co's value of 3.95% is 57.9% below this industry median. Based on the distribution chart, Stepan Co ranks #1066 out of 1606 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 ROC (Joel Greenblatt) % compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #1066 out of 1606 companies for ROC (Joel Greenblatt) %. This places Stepan Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 9.38. Stepan Co's value of 3.95% is 57.9% below this benchmark. Historically, Stepan Co's own ROC (Joel Greenblatt) % has ranged from 4.13 to 20.51 over the past decade. While the company's 10-year median is 16.35 vs. the industry median of 9.38, 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 ROC (Joel Greenblatt) % for a Chemicals company?
The median ROC (Joel Greenblatt) % among Chemicals companies is 9.38, based on 1,606 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current ROC (Joel Greenblatt) % of 3.95% is 57.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current ROC (Joel Greenblatt) % is 3.95%, which is 76% below median its own 10-year median of 16.35. 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 $70.74, compared to a current price of $56.75 — trading 19.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 3.95%, which is 76% below median its 10-year median of 16.35 and 57.9% below the Chemicals industry median of 9.38. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Stepan Co (SCL), the current ROC (Joel Greenblatt) % is 3.95% 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 $56.75 is trading 19.8% below its estimated GF Value™ of $70.74.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
ROC (Joel Greenblatt) %: 3.95% (76% below median its 10-year median of 16.35)
GF Value™: $70.74 vs. price of $56.75 (19.8% below fair value)
Industry Position: 57.9% below the Chemicals median (#1066 of 1606)
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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