Is STEPAN CO (SCL) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 62.3% / 30% | 12.2% / 30% | 35.7% / 30% | 0.18% / 5% | ✗ NOT HALAL |
| DJIM | 62.3% / 33% | 12.2% / 33% | 35.7% / 33% | 0.18% / 5% | ✗ NOT HALAL |
| MSCI | 28.7% / 33% | 5.6% / 33% | 16.5% / 33% | 0.18% / 5% | ✓ HALAL |
| S&P | 62.3% / 33% | 12.2% / 33% | 35.7% / 33% | 0.18% / 5% | ✗ NOT HALAL |
| FTSE | 28.7% / 33% | 5.6% / 33% | 16.5% / 50% | 0.18% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 11.6% | |
| Operating Margin | 0.0% | |
| Net Margin | 2.0% | |
| Return on Equity (ROE) | 3.9% | |
| Return on Assets (ROA) | 1.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $148M |
| Free Cash Flow | $25M |
| Total Debt | $676M |
| Debt-to-Equity | 55.5 |
| Current Ratio | 1.3 |
| Total Assets | $2.4B |
Price & Trading
| Last Close | $50.04 |
| 50-Day MA | $54.32 |
| 200-Day MA | $50.65 |
| Avg Volume | 187K |
| Beta | 1.0 |
|
52-Week Range
$41.82
| |
About STEPAN CO (SCL)
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally. 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, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients; emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins used in coating applications; specialty polyols, such as CASE and powdered polyester resins; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.
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Frequently Asked Questions
Is STEPAN CO (SCL) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), STEPAN CO is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is STEPAN CO's debt ratio?
STEPAN CO's debt ratio is 62.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 28.7%.
What are STEPAN CO's key financial metrics?
STEPAN CO has a market capitalization of $1.1B, trailing P/E ratio of 24.1, and revenue of $2.3B. The company maintains a gross margin of 11.6% and a net margin of 2.0%. Return on equity stands at 3.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.