ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Stepan Co's annualized net income for the quarter that ended in Mar. 2026 was $-166 Mil. Stepan Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,219 Mil. Therefore, Stepan Co's annualized ROE % for the quarter that ended in Mar. 2026 was -13.59%.
The historical rank and industry rank for Stepan Co's ROE % or its related term are showing as below:
SCL'
s ROE % Range Over the Past 10 Years
Min: -1.16 Med: 13.26 Max: 14.66
Current: -1.16
During the past 13 years, Stepan Co's highest ROE % was 14.66%. The lowest was -1.16%. And the median was 13.26%.
SCL's ROE % is ranked worse than 75.85% of 1590
companies
in the Chemicals industry
Industry Median: 5.195
vs SCL: -1.16
Stepan Co (NYSE:SCL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Stepan Co ROE % Related Terms
Stepan Co ROE % Historical Data
* Premium members only.
The historical data trend for Stepan Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's ROE % distribution charts can be found below:
* The bar in red indicates where Stepan Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Stepan Co (SCL) has a ROE % of -13.59% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Stepan Co and its competitors. According to the industry distribution chart, Stepan Co ranks #1206 out of 1590 companies in the Chemicals industry, placing it in the top 75.8%.
Is Stepan Co's ROE % too high?
Stepan Co's current ROE % is -13.59%. Based on the distribution chart, Stepan Co ranks #1206 out of 1590 companies in the Chemicals industry, which is in the bottom quartile relative to peers. 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 ROE % compare to ODC and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #1206 out of 1590 companies for ROE %. This places Stepan Co in the lower half of its industry. The industry median ROE % is 5.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current ROE % is -13.59%. 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 $70.56, compared to a current price of $54.20 — trading 23.2% below its estimated fair value. The current ROE % is -13.59%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Stepan Co (SCL), the current ROE % is -13.59% 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 $54.20 is trading 23.2% below its estimated GF Value™ of $70.56.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
ROE %: -13.59%
GF Value™: $70.56 vs. price of $54.20 (23.2% 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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