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
BCPC had positive earnings in the past year.
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 89.41% of the companies in the same industry.
BCPC's Return On Equity of 11.30% is fine compared to the rest of the industry. BCPC outperforms 78.82% of its industry peers.
With an excellent Return On Invested Capital value of 10.22%, BCPC belongs to the best of the industry, outperforming 84.71% 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 in line with the industry average of 7.13%.
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
BCPC's Profit Margin of 14.16% is amongst the best of the industry. BCPC outperforms 95.29% of its industry peers.
In the last couple of years the Profit Margin of BCPC has grown nicely.
With an excellent Operating Margin value of 20.05%, BCPC belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
BCPC's Operating Margin has improved in the last couple of years.
BCPC's Gross Margin of 35.55% is fine compared to the rest of the industry. BCPC outperforms 71.76% of its industry peers.
In the last couple of years the Gross Margin of BCPC has remained more or less at the same level.
| 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
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
Compared to 5 years ago, BCPC has more shares outstanding
The debt/assets ratio for BCPC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.37 indicates that BCPC is not in any danger for bankruptcy at the moment.
BCPC has a better Altman-Z score (9.37) than 100.00% of its industry peers.
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.
BCPC has a Debt to FCF ratio of 1.27. This is amongst the best in the industry. BCPC outperforms 94.12% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that BCPC is not too dependend on debt financing.
BCPC has a better Debt to Equity ratio (0.16) than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.37 |
ROIC/WACC1.17
WACC8.77%
2.3 Liquidity
BCPC has a Current Ratio of 2.44. This indicates that BCPC is financially healthy and has no problem in meeting its short term obligations.
BCPC has a Current ratio of 2.44. This is in the better half of the industry: BCPC outperforms 70.59% of its industry peers.
BCPC has a Quick Ratio of 1.40. This is a normal value and indicates that BCPC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.40, BCPC is doing good in the industry, outperforming 65.88% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
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 12.14% on average over the next years. This is quite good.
BCPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y17.6%
EPS Next 2Y12.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y7.54%
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.
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
A Price/Earnings ratio of 33.62 indicates a quite expensive valuation of BCPC.
Based on the Price/Earnings ratio, BCPC is valued a bit more expensive than the industry average as 62.35% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of BCPC to the average of the S&P500 Index (28.78), we can say BCPC is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.89, BCPC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BCPC is valued a bit more expensive than 61.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCPC to the average of the S&P500 Index (21.32), we can say BCPC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.62 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
74.12% of the companies in the same industry are cheaper than BCPC, based on the Enterprise Value to EBITDA ratio.
BCPC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.15 | ||
| EV/EBITDA | 21.53 |
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.
BCPC's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)5.14
EPS Next 2Y12.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, BCPC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.80, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.57, BCPC pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.02%
Div Incr Years14
Div Non Decr Years25
5.3 Sustainability
BCPC pays out 20.71% of its income as dividend. This is a sustainable payout ratio.
BCPC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP20.71%
EPS Next 2Y12.14%
EPS Next 3YN/A
153.64
-0.56 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.66%
Inst Owner Change0.77%
Ins Owners0.47%
Ins Owner Change6.44%
Market Cap5.00B
Analysts82.5
Price Target203.32 (32.34%)
Short Float %1.45%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP20.71%
Div Incr Years14
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.03%
Min EPS beat(2)-4.31%
Max EPS beat(2)0.26%
EPS beat(4)2
Avg EPS beat(4)-0.25%
Min EPS beat(4)-4.31%
Max EPS beat(4)3.25%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)10
Avg EPS beat(12)8.51%
EPS beat(16)13
Avg EPS beat(16)8.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-3.04%
Revenue beat(12)3
Avg Revenue beat(12)-2.39%
Revenue beat(16)6
Avg Revenue beat(16)-0.58%
PT rev (1m)0%
PT rev (3m)4.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.62 | ||
| Fwd PE | 27.89 | ||
| P/S | 5.18 | ||
| P/FCF | 33.15 | ||
| P/OCF | 27.01 | ||
| P/B | 4.13 | ||
| P/tB | 20.02 | ||
| EV/EBITDA | 21.53 |
EPS(TTM)4.57
EY2.97%
EPS(NY)5.51
Fwd EY3.59%
FCF(TTM)4.63
FCFY3.02%
OCF(TTM)5.69
OCFY3.7%
SpS29.65
BVpS37.16
TBVpS7.67
PEG (NY)1.91
PEG (5Y)5.14
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 | 9.37 |
F-Score7
WACC8.77%
ROIC/WACC1.17
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 Y17.6%
EPS Next 2Y12.14%
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 2Y7.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.42%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year34.66%
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%