BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - Nasdaq - US0576652004 - Common Stock - Currency: USD
Taking everything into account, BCPC scores 6 out of 10 in our fundamental rating. BCPC was compared to 85 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. BCPC is quite expensive at the moment. It does show a decent growth rate. These ratings could make BCPC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year BCPC was profitable.
BCPC had a positive operating cash flow in the past year.
Each year in the past 5 years BCPC has been profitable.
BCPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.44%, BCPC belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
BCPC has a Return On Equity of 11.30%. This is in the better half of the industry: BCPC outperforms 77.65% of its industry peers.
The Return On Invested Capital of BCPC (10.22%) is better than 84.71% of its industry peers.
BCPC had an Average Return On Invested Capital over the past 3 years of 8.80%. This is in line with the industry average of 6.84%.
The last Return On Invested Capital (10.22%) for BCPC is above the 3 year average (8.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 11.3% | ||
| ROIC | 10.22% |
ROA(3y)7.15%
ROA(5y)7.34%
ROE(3y)10.9%
ROE(5y)10.78%
ROIC(3y)8.8%
ROIC(5y)8.82%
1.3 Margins
Looking at the Profit Margin, with a value of 14.16%, BCPC belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BCPC has grown nicely.
BCPC has a Operating Margin of 20.05%. This is amongst the best in the industry. BCPC outperforms 87.06% of its industry peers.
BCPC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.55%, BCPC is doing good in the industry, outperforming 71.76% of the companies in the same industry.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.05% | ||
| PM (TTM) | 14.16% | ||
| GM | 35.55% |
OM growth 3Y6.43%
OM growth 5Y3.44%
PM growth 3Y3.85%
PM growth 5Y1.7%
GM growth 3Y5.02%
GM growth 5Y1.43%
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.
BCPC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BCPC has been increased compared to 5 years ago.
The debt/assets ratio for BCPC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.66 indicates that BCPC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.66, BCPC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
BCPC has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.27, BCPC belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
BCPC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BCPC (0.16) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.66 |
ROIC/WACC1.14
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.44 indicates that BCPC has no problem at all paying its short term obligations.
The Current ratio of BCPC (2.44) is better than 65.88% of its industry peers.
A Quick Ratio of 1.40 indicates that BCPC should not have too much problems paying its short term obligations.
BCPC has a Quick ratio of 1.40. This is in the better half of the industry: BCPC outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.01% over the past year.
BCPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.55% yearly.
The Revenue has been growing slightly by 3.76% in the past year.
The Revenue has been growing by 8.18% on average over the past years. This is quite good.
EPS 1Y (TTM)12.01%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%18.45%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
Based on estimates for the next years, BCPC will show a small growth in Revenue. The Revenue will grow by 6.68% on average per year.
EPS Next Y18.18%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y6.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.42, which means the current valuation is very expensive for BCPC.
Based on the Price/Earnings ratio, BCPC is valued a bit more expensive than the industry average as 63.53% of the companies are valued more cheaply.
BCPC is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.99, which means the current valuation is very expensive for BCPC.
Based on the Price/Forward Earnings ratio, BCPC is valued a bit more expensive than 64.71% of the companies in the same industry.
BCPC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.42 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCPC indicates a slightly more expensive valuation: BCPC is more expensive than 72.94% of the companies listed in the same industry.
BCPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.03 | ||
| EV/EBITDA | 22.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BCPC does not grow enough to justify the current Price/Earnings ratio.
BCPC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BCPC's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)1.95
PEG (5Y)5.41
EPS Next 2Y12.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 3.69, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.55, BCPC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of BCPC grows each year by 11.02%, which is quite nice.
BCPC has paid a dividend for at least 10 years, which is a reliable track record.
BCPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.02%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
20.71% of the earnings are spent on dividend by BCPC. This is a low number and sustainable payout ratio.
The dividend of BCPC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP20.71%
EPS Next 2Y12.92%
EPS Next 3YN/A
161.88
+2.68 (+1.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change-0.13%
Ins Owners0.44%
Ins Owner Change6.44%
Market Cap5.28B
Analysts82.5
Price Target200.6 (23.92%)
Short Float %1.44%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP20.71%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.65%
Min EPS beat(2)-1.56%
Max EPS beat(2)0.26%
EPS beat(4)2
Avg EPS beat(4)0.44%
Min EPS beat(4)-1.56%
Max EPS beat(4)3.25%
EPS beat(8)6
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)8.74%
EPS beat(16)13
Avg EPS beat(16)8.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-0.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.04%
Revenue beat(8)1
Avg Revenue beat(8)-3.09%
Revenue beat(12)2
Avg Revenue beat(12)-2.42%
Revenue beat(16)5
Avg Revenue beat(16)-0.61%
PT rev (1m)0%
PT rev (3m)-1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.42 | ||
| Fwd PE | 28.99 | ||
| P/S | 5.47 | ||
| P/FCF | 35.03 | ||
| P/OCF | 28.53 | ||
| P/B | 4.37 | ||
| P/tB | 21.15 | ||
| EV/EBITDA | 22.35 |
EPS(TTM)4.57
EY2.82%
EPS(NY)5.58
Fwd EY3.45%
FCF(TTM)4.62
FCFY2.85%
OCF(TTM)5.67
OCFY3.5%
SpS29.57
BVpS37.05
TBVpS7.65
PEG (NY)1.95
PEG (5Y)5.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 11.3% | ||
| ROCE | 13.08% | ||
| ROIC | 10.22% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 32.21% | ||
| OM | 20.05% | ||
| PM (TTM) | 14.16% | ||
| GM | 35.55% | ||
| FCFM | 15.63% |
ROA(3y)7.15%
ROA(5y)7.34%
ROE(3y)10.9%
ROE(5y)10.78%
ROIC(3y)8.8%
ROIC(5y)8.82%
ROICexc(3y)9.17%
ROICexc(5y)9.39%
ROICexgc(3y)30.05%
ROICexgc(5y)29.29%
ROCE(3y)11.26%
ROCE(5y)11.29%
ROICexcg growth 3Y4.31%
ROICexcg growth 5Y6.46%
ROICexc growth 3Y0.05%
ROICexc growth 5Y5.05%
OM growth 3Y6.43%
OM growth 5Y3.44%
PM growth 3Y3.85%
PM growth 5Y1.7%
GM growth 3Y5.02%
GM growth 5Y1.43%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 75.71% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 12.45 | ||
| Cash Conversion | 77.54% | ||
| Profit Quality | 110.41% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 9.66 |
F-Score7
WACC8.93%
ROIC/WACC1.14
Cap/Depr(3y)80.14%
Cap/Depr(5y)76.56%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.53%
Profit Quality(3y)110.66%
Profit Quality(5y)119.6%
High Growth Momentum
Growth
EPS 1Y (TTM)12.01%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%18.45%
EPS Next Y18.18%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.76%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
Revenue Next Year6.51%
Revenue Next 2Y6.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.42%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year37.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.3%
FCF growth 3Y5.93%
FCF growth 5Y8.77%
OCF growth 1Y11.29%
OCF growth 3Y4.28%
OCF growth 5Y7.89%