Stepan CoSCL +0.16%79 3-Year RORE % is 215.09 as of Mar. 2026. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $70.71 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,522 Chemicals companies, Stepan Co ranks better than 95.73% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Stepan Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 215.09%.
The industry rank for Stepan Co's 3-Year RORE % or its related term are showing as below:
SCL's 3-Year RORE % is ranked better than 95.73% of 1522
companies
in the Chemicals industry
Industry Median: 6.21
vs SCL: 215.09
Stepan Co (NYSE:SCL) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Stepan Co 3-Year RORE % Related Terms
Stepan Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Stepan Co's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Stepan Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Stepan Co (SCL) has a 3-Year RORE % of 215.09 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Stepan Co and its competitors. According to the industry distribution chart, Stepan Co ranks #65 out of 1522 companies in the Chemicals industry, placing it in the top 4.3%.
Is Stepan Co's 3-Year RORE % too high?
Stepan Co's current 3-Year RORE % is 215.09. The Chemicals industry median 3-Year RORE % is 6.21. Stepan Co's value of 215.09 is 3363.6% above this industry median. Based on the distribution chart, Stepan Co ranks #65 out of 1522 companies in the Chemicals industry, which is in the top quartile — a strong position 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 3-Year RORE % compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #65 out of 1522 companies for 3-Year RORE %. This places Stepan Co in the top 4% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 6.21. Stepan Co's value of 215.09 is 3363.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Chemicals company?
The median 3-Year RORE % among Chemicals companies is 6.21, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current 3-Year RORE % of 215.09 is 3363.6% above 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median 3-Year RORE % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current 3-Year RORE % is 215.09. 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 $70.71, compared to a current price of $55.81 — trading 21.1% below its estimated fair value. The current 3-Year RORE % is 215.09 and 3363.6% above the Chemicals industry median of 6.21. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Stepan Co (SCL), the current 3-Year RORE % is 215.09 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 $55.81 is trading 21.1% below its estimated GF Value™ of $70.71.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
3-Year RORE %: 215.09
GF Value™: $70.71 vs. price of $55.81 (21.1% below fair value)
Industry Position: 3363.6% above the Chemicals median (#65 of 1522)
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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