Stepan Company – Basic Materials Sector Stocks In 2021
There is a lot of emphasis on cleaning these days. Whether it is our homes, our workplaces, big manufacturing facilities, or other locations, everyone wants to have their facilities thoroughly cleaned from time to time. Whether this effect can be pinpointed to the pandemic is another discussion, but it certainly seems to have a part to play. Stepan Company is one of the major producers of surfactants and cleaning agents in the US. It is quite likely that the company would be among the beneficiaries of the rising cleaning standards worldwide. Besides surfactants, Stepan Company also produces polymers and oils used in the nutritional and pharmaceutical industries. The agriculture industry also uses Stepan Company’s products. So, if you are shortlisting basic materials company stock now, then large and established firms like Stepan Company can be a possible option.
Stepan Company’s Prospects And Financials
Stepan Company sells certain chemicals to the consumer products industry. That industry alone presents a $650 billion opportunity for specialty chemical companies like Stepan. Then, the construction and automotive industries also use Stepan Company’s products. Some tailwinds are coming in from the agriculture and oil industries that can positively impact Stepan Company. On the commodity side of things, rising energy prices can impact Stepan negatively. Its manufacturing plants use energy and natural gas for their daily operations. Therefore, stability in the price of natural gas and electricity is important. Over the past ten years, the total revenue of Stepan Company has been rather flat at around $1.8-1.9 billion. However, the net income has grown from $72 million to $127 million. Among the more interesting basic materials sector stocks in 2021 is Stepan Company.
Basic Materials Company Stock Now
Stepan Company’s stock has been up by a relatively modest 40% over the past five years as seen on 1st December 2021. On the last day of November 2021, the stock closed at around $112. The dividend yield at the time was 1.19%. On a longer-term basis, the stock has been on an uptrend over the past decade.