BALCHEM CORP (BCPC)
US0576652004 - Common Stock
Taking everything into account, BCPC scores 6 out of 10 in our fundamental rating. BCPC was compared to 84 industry peers in the Chemicals industry. BCPC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, BCPC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BCPC had positive earnings in the past year.
In the past year BCPC had a positive cash flow from operations.
BCPC had positive earnings in each of the past 5 years.
In the past 5 years BCPC always reported a positive cash flow from operatings.
1.2 Ratios
BCPC has a better Return On Assets (7.61%) than 86.90% of its industry peers.
BCPC has a Return On Equity of 10.32%. This is in the better half of the industry: BCPC outperforms 71.43% of its industry peers.
BCPC has a better Return On Invested Capital (9.15%) than 84.52% of its industry peers.
BCPC had an Average Return On Invested Capital over the past 3 years of 8.66%. This is above the industry average of 6.50%.
The last Return On Invested Capital (9.15%) for BCPC is above the 3 year average (8.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 10.32% | ||
| ROIC | 9.15% |
ROA(3y)7.1%
ROA(5y)7.09%
ROE(3y)10.83%
ROE(5y)10.68%
ROIC(3y)8.66%
ROIC(5y)8.42%
1.3 Margins
BCPC has a Profit Margin of 12.90%. This is amongst the best in the industry. BCPC outperforms 90.48% of its industry peers.
BCPC's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.30%, BCPC belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Operating Margin of BCPC has remained more or less at the same level.
BCPC has a Gross Margin of 34.47%. This is in the better half of the industry: BCPC outperforms 71.43% of its industry peers.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.3% | ||
| PM (TTM) | 12.9% | ||
| GM | 34.47% |
OM growth 3Y1.9%
OM growth 5Y0.1%
PM growth 3Y-0.72%
PM growth 5Y-0.74%
GM growth 3Y0.96%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCPC is creating some value.
Compared to 1 year ago, BCPC has about the same amount of shares outstanding.
The number of shares outstanding for BCPC remains at a similar level compared to 5 years ago.
The debt/assets ratio for BCPC has been reduced compared to a year ago.
2.2 Solvency
BCPC has an Altman-Z score of 10.25. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
BCPC has a better Altman-Z score (10.25) than 100.00% of its industry peers.
BCPC has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
BCPC has a Debt to FCF ratio of 1.41. This is amongst the best in the industry. BCPC outperforms 91.67% of its industry peers.
BCPC has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
BCPC's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. BCPC outperforms 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 10.25 |
ROIC/WACC1.04
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.98 indicates that BCPC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.98, BCPC belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that BCPC should not have too much problems paying its short term obligations.
BCPC has a better Quick ratio (1.90) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.53% over the past year.
The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
The Revenue has been growing slightly by 1.75% in the past year.
The Revenue has been growing slightly by 7.46% on average over the past years.
EPS 1Y (TTM)5.53%
EPS 3Y6.32%
EPS 5Y5.73%
EPS Q2Q%8.65%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y9.45%
Revenue growth 5Y7.46%
Sales Q2Q%4.35%
3.2 Future
Based on estimates for the next years, BCPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.60% on average per year.
Based on estimates for the next years, BCPC will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y11.33%
EPS Next 2Y11.75%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y4.75%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 42.93, which means the current valuation is very expensive for BCPC.
Based on the Price/Earnings ratio, BCPC is valued a bit more expensive than 65.48% of the companies in the same industry.
BCPC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 36.19, BCPC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCPC indicates a slightly more expensive valuation: BCPC is more expensive than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BCPC to the average of the S&P500 Index (23.82), we can say BCPC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.93 | ||
| Fwd PE | 36.19 |
4.2 Price Multiples
77.38% of the companies in the same industry are cheaper than BCPC, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | 26.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BCPC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.79
PEG (5Y)7.49
EPS Next 2Y11.75%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 2.95, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.45, BCPC pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of BCPC grows each year by 11.23%, which is quite nice.
BCPC has been paying a dividend for at least 10 years, so it has a reliable track record.
BCPC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.23%
Div Incr Years14
Div Non Decr Years25
5.3 Sustainability
BCPC pays out 21.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of BCPC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.02%
EPS Next 2Y11.75%
EPS Next 3Y9.6%
BALCHEM CORP
NASDAQ:BCPC (11/21/2024, 8:14:25 PM)
After market: 180 -0.31 (-0.17%)180.31
+2.28 (+1.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.93 | ||
| Fwd PE | 36.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.79
PEG (5Y)7.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 10.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.3% | ||
| PM (TTM) | 12.9% | ||
| GM | 34.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.53%
EPS 3Y6.32%
EPS 5Y
EPS Q2Q%
EPS Next Y11.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.75%
Revenue growth 3Y9.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y