Stepan CoSCL -0.60%79 5-Year Yield-on-Cost % is 3.81 as of Jul. 07, 2026, which is 144% above its 10-year median of 1.56. GuruFocus rates SCL with a GF Score™ of 79/100 and a GF Value™ of $70.80 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,069 Chemicals companies, Stepan Co ranks better than 71.84% on this metric.
Stepan Co's yield on cost for the quarter that ended in Mar. 2026 was 3.81.
The historical rank and industry rank for Stepan Co's 5-Year Yield-on-Cost % or its related term are showing as below:
SCL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.15 Med: 1.56 Max: 4.86
Current: 3.81
During the past 13 years, Stepan Co's highest Yield on Cost was 4.86. The lowest was 1.15. And the median was 1.56.
SCL's 5-Year Yield-on-Cost % is ranked better than 71.84% of 1069
companies
in the Chemicals industry
Industry Median: 1.75
vs SCL: 3.81
Stepan Co (NYSE:SCL) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Stepan Co 5-Year Yield-on-Cost % Related Terms
SCL vs LWLG, ECVT, ODC: 5-Year Yield-on-Cost % Comparison
For the Specialty Chemicals subindustry, Stepan Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Stepan Co's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Stepan Co is calculated as
Stepan Co (SCL) has a 5-Year Yield-on-Cost % of 3.81 as of Jul. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Stepan Co and its competitors. This is 144% above median its historical median of 1.56. Over the past decade, Stepan Co's 5-Year Yield-on-Cost % has ranged from 1.15 to 4.86. According to the industry distribution chart, Stepan Co ranks #301 out of 1069 companies in the Chemicals industry, placing it in the top 28.2%.
Is Stepan Co's 5-Year Yield-on-Cost % too high?
Stepan Co's current 5-Year Yield-on-Cost % of 3.81 is 144% above median its 10-year median of 1.56. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 4.86. The Chemicals industry median 5-Year Yield-on-Cost % is 1.75. Stepan Co's value of 3.81 is 117.7% above this industry median. Based on the distribution chart, Stepan Co ranks #301 out of 1069 companies in the Chemicals industry, which is above 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 5-Year Yield-on-Cost % compare to LWLG and ECVT?
According to the Chemicals industry distribution chart, Stepan Co ranks #301 out of 1069 companies for 5-Year Yield-on-Cost %. This puts Stepan Co in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.75. Stepan Co's value of 3.81 is 117.7% above this benchmark. Historically, Stepan Co's own 5-Year Yield-on-Cost % has ranged from 1.15 to 4.86 over the past decade. While the company's 10-year median is 1.56 vs. the industry median of 1.75, Stepan Co has consistently been above 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 5-Year Yield-on-Cost % for a Chemicals company?
The median 5-Year Yield-on-Cost % among Chemicals companies is 1.75, based on 1,069 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepan Co's current 5-Year Yield-on-Cost % of 3.81 is 117.7% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Stepan Co and its competitors. For the Chemicals industry, the median 5-Year Yield-on-Cost % is 1.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepan Co's current 5-Year Yield-on-Cost % is 3.81, which is 144% above median its own 10-year median of 1.56. 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 $70.80, compared to a current price of $56.51 — trading 20.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.81, which is 144% above median its 10-year median of 1.56 and 117.7% above the Chemicals industry median of 1.75. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Stepan Co (SCL), the current 5-Year Yield-on-Cost % is 3.81 as of Jul. 07, 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 $56.51 is trading 20.2% below its estimated GF Value™ of $70.80.
GuruFocus considers Stepan Co to be Modestly Undervalued.
Key valuation signals for SCL:
5-Year Yield-on-Cost %: 3.81 (144% above median its 10-year median of 1.56)
GF Value™: $70.80 vs. price of $56.51 (20.2% below fair value)
Industry Position: 117.7% above the Chemicals median (#301 of 1069)
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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