The business behind the dividend
| Measure | SCL | Median | Formula |
|---|---|---|---|
| Return on equity | 3.8% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 4.2% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $50.42m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $25.37m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 3.4% | 14.3% | Operating income ÷ revenue |
| Net margin | 2.0% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.50x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.55x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.29x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.77x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 3.15x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -4.3% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 3.8% | 4.3% | 3.3% | 12.6% | 12.8% | 12.8% | 11.6% | 13.8% | 13.6% | 13.6% | 12.6% |
| Return on capital employed | 4.2% | 3.9% | 3.1% | 11.8% | 11.9% | 14.5% | 11.4% | 13.8% | 15.0% | 13.4% | 11.8% |
| Operating margin | 3.4% | 3.2% | 2.5% | 7.5% | 7.3% | 9.2% | 6.8% | 7.5% | 8.0% | 7.2% | 7.2% |
| Net margin | 2.0% | 2.3% | 1.7% | 5.3% | 5.9% | 6.8% | 5.5% | 5.6% | 5.2% | 4.9% | 5.2% |
| Debt to equity | 0.50x | 0.53x | 0.54x | 0.50x | 0.34x | 0.20x | 0.25x | 0.34x | 0.39x | 0.50x | 0.39x |
| Current ratio | 1.29x | 1.21x | 1.40x | 1.56x | 1.82x | 2.17x | 2.41x | 2.46x | 2.46x | 2.31x | 1.82x |
| Cash conversion | 3.15x | 3.22x | 4.35x | 1.09x | 0.52x | 1.86x | 2.12x | 1.54x | 1.97x | 2.46x | 1.97x |
How it compares in consumer staples
Among the 64 consumer staples companies here measured on free cash flow, Stepan pays out less than 5 of them. The median for that group is 53.9%, against this company’s 138.1%.
Closest on free cash flow
- Hormel Foods (HRL) 118.5%
- Sanfilippo John B & Son (JBSS) 130.8%
- United Guardian (UG) 145.0%
- Coca Cola (KO) 165.8%
Same sector and same denominator, so the figures are comparable. All 72 in consumer staples →