Stepan Company SCL

Competitive advantage analysis · basic-materials

Corporate Default
Overall moat score
46/100
Developing

About Stepan Company

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, … Full SCL analysis →

Competitive advantage assessment

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.09), raising questions about short-term obligations.
  • Weak or Negative Cash Flow Cash generation is weak (score 0.37), limiting financial flexibility.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
44

Where SCL ranks in Specialty Chemicals

Stepan Company ranks #29 of 56 scored companies in Specialty Chemicals by moat score — the top 52%. The widest moat in the group is WD-40 Company (WDFC) at 81/100.

Moat scores for companies ranked near SCL in Specialty Chemicals
# Company Moat score Rating
25 DuPont de Nemours, Inc. DD 54/100 Moderate
26 Avient Corporation AVNT 52/100 Moderate
27 Northern Technologies Internati NTIC 48/100 Developing
28 Quaker Houghton KWR 47/100 Developing
29 Stepan Company SCL 46/100 Developing
30 Minerals Technologies Inc. MTX 46/100 Developing
31 Hudson Technologies, Inc. HDSN 45/100 Developing
32 Perimeter Solutions, SA PRM 43/100 Developing
33 Alto Ingredients, Inc. ALTO 42/100 Developing

See every General Corporate company ranked by moat score →

How SCL scores on the Corporate Default defenses

Pricing Power

Score 44 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 73 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 45 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 46 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 39 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 34 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SCL's moat

What is Stepan Company's moat score?

Stepan Company (SCL) scores 46 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #29 of 56 scored companies in Specialty Chemicals, the top 52%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Specialty Chemicals. Its strongest defense is Cost Advantage (73/100) and its weakest is Scale & Market Position (34/100).

How does Stepan Company compare with other Specialty Chemicals companies?

Stepan Company ranks #29 of 56 scored companies in Specialty Chemicals by moat score. The widest moat in Specialty Chemicals is WD-40 Company (WDFC) at 81/100. The companies ranked closest are Quaker Houghton (KWR) at 46 just above it and Minerals Technologies Inc. (MTX) at 46 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Specialty Chemicals. The defenses are then weighted to produce the overall score out of 100.

Why is Stepan Company scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Stepan Company?

The Corporate Default template measures 6 defenses, and SCL scores: Pricing Power (44), Cost Advantage (73), Customer Stickiness (45), Capital Efficiency (46), Resilience (39), Scale & Market Position (34). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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