BALCHEM CORP (BCPC) Stock Fundamental Analysis
USA - NASDAQ:BCPC - US0576652004 - Common Stock
156.52 USD
+0.08 (+0.05%)
156.521 USD
0 (0%)
Taking everything into account, BCPC scores 7 out of 10 in our fundamental rating. BCPC was compared to 83 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 would make BCPC suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year BCPC was profitable.
In the past year BCPC had a positive cash flow from operations.
BCPC had positive earnings in each of the past 5 years.
Each year in the past 5 years BCPC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BCPC (8.51%) is better than 89.16% of its industry peers.
BCPC's Return On Equity of 11.26% is fine compared to the rest of the industry. BCPC outperforms 79.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.10%, BCPC belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
BCPC had an Average Return On Invested Capital over the past 3 years of 8.80%. This is above the industry average of 6.34%.
The 3 year average ROIC (8.80%) for BCPC is below the current ROIC(10.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.26% | ||
| ROIC | 10.1% |
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
With an excellent Profit Margin value of 14.48%, BCPC belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
In the last couple of years the Profit Margin of BCPC has grown nicely.
BCPC's Operating Margin of 20.19% is amongst the best of the industry. BCPC outperforms 86.75% of its industry peers.
BCPC's Operating Margin has improved in the last couple of years.
BCPC's Gross Margin of 35.80% is fine compared to the rest of the industry. BCPC outperforms 72.29% of its industry peers.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.19% | ||
| PM (TTM) | 14.48% | ||
| GM | 35.8% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCPC is still creating some value.
Compared to 1 year ago, BCPC has more shares outstanding
BCPC has more shares outstanding than it did 5 years ago.
BCPC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.46 indicates that BCPC is not in any danger for bankruptcy at the moment.
BCPC has a Altman-Z score of 9.46. This is amongst the best in the industry. BCPC outperforms 98.80% of its industry peers.
BCPC has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
BCPC has a better Debt to FCF ratio (1.25) than 96.39% of its industry peers.
BCPC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, BCPC belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.46 |
ROIC/WACC1.12
WACC9.01%
2.3 Liquidity
A Current Ratio of 2.64 indicates that BCPC has no problem at all paying its short term obligations.
BCPC's Current ratio of 2.64 is fine compared to the rest of the industry. BCPC outperforms 71.08% of its industry peers.
A Quick Ratio of 1.57 indicates that BCPC should not have too much problems paying its short term obligations.
BCPC has a better Quick ratio (1.57) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.57% 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.
BCPC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
Measured over the past years, BCPC shows a quite strong growth in Revenue. The Revenue has been growing by 8.18% on average per year.
EPS 1Y (TTM)15.57%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%16.51%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%9.14%
3.2 Future
BCPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.17% yearly.
BCPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y18.77%
EPS Next 2Y13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.43%
Revenue Next 2Y6.87%
Revenue Next 3YN/A
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.95, the valuation of BCPC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BCPC.
When comparing the Price/Earnings ratio of BCPC to the average of the S&P500 Index (27.38), we can say BCPC is valued slightly more expensively.
BCPC is valuated quite expensively with a Price/Forward Earnings ratio of 27.90.
63.86% of the companies in the same industry are cheaper than BCPC, based on the Price/Forward Earnings ratio.
BCPC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 27.9 |
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 67.47% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | 21.4 |
4.3 Compensation for Growth
BCPC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BCPC has an outstanding profitability rating, which may justify a higher PE ratio.
BCPC's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)5.03
EPS Next 2Y13.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, BCPC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, 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 2.38.
| 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 been paying a dividend for at least 10 years, so it has 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
19.81% 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.
DP19.81%
EPS Next 2Y13.17%
EPS Next 3YN/A
156.52
+0.08 (+0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.15%
Inst Owner Change-0.97%
Ins Owners0.44%
Ins Owner Change-0.09%
Market Cap5.08B
Analysts82.5
Price Target204.34 (30.55%)
Short Float %1.45%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP19.81%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.56%
Max EPS beat(2)-0.39%
EPS beat(4)1
Avg EPS beat(4)-0.47%
Min EPS beat(4)-1.56%
Max EPS beat(4)0.26%
EPS beat(8)5
Avg EPS beat(8)1.21%
EPS beat(12)9
Avg EPS beat(12)7.54%
EPS beat(16)12
Avg EPS beat(16)8.13%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-2.15%
Revenue beat(12)2
Avg Revenue beat(12)-2.66%
Revenue beat(16)5
Avg Revenue beat(16)-1.04%
PT rev (1m)1.52%
PT rev (3m)1.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 27.9 | ||
| P/S | 5.15 | ||
| P/FCF | 33.19 | ||
| P/OCF | 27.12 | ||
| P/B | 4.01 | ||
| P/tB | 18.17 | ||
| EV/EBITDA | 21.4 |
EPS(TTM)4.75
EY3.03%
EPS(NY)5.61
Fwd EY3.58%
FCF(TTM)4.72
FCFY3.01%
OCF(TTM)5.77
OCFY3.69%
SpS30.37
BVpS39.06
TBVpS8.62
PEG (NY)1.76
PEG (5Y)5.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.26% | ||
| ROCE | 12.92% | ||
| ROIC | 10.1% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 31.97% | ||
| OM | 20.19% | ||
| PM (TTM) | 14.48% | ||
| GM | 35.8% | ||
| FCFM | 15.53% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 77.45% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 14.8 | ||
| Cash Conversion | 77.02% | ||
| Profit Quality | 107.24% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 9.46 |
F-Score7
WACC9.01%
ROIC/WACC1.12
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)15.57%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%16.51%
EPS Next Y18.77%
EPS Next 2Y13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.75%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%9.14%
Revenue Next Year7.43%
Revenue Next 2Y6.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.65%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year40.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y45.1%
FCF growth 3Y5.93%
FCF growth 5Y8.77%
OCF growth 1Y22.44%
OCF growth 3Y4.28%
OCF growth 5Y7.89%