BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - Nasdaq - US0576652004 - Common Stock - Currency: USD
BCPC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. BCPC is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years BCPC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.61%, BCPC belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
BCPC has a Return On Equity of 10.32%. This is in the better half of the industry: BCPC outperforms 68.29% of its industry peers.
BCPC has a Return On Invested Capital of 9.15%. This is amongst the best in the industry. BCPC outperforms 84.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCPC is above the industry average of 6.57%.
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
The Profit Margin of BCPC (12.90%) is better than 91.46% of its industry peers.
In the last couple of years the Profit Margin of BCPC has remained more or less at the same level.
BCPC has a better Operating Margin (18.30%) than 89.02% of its industry peers.
In the last couple of years the Operating Margin of BCPC has remained more or less at the same level.
The Gross Margin of BCPC (34.47%) is better than 68.29% 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.
Compared to 5 years ago, BCPC has about the same amount of shares outstanding.
Compared to 1 year ago, BCPC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.46 indicates that BCPC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.46, BCPC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of BCPC is 1.41, which is an excellent value as it means it would take BCPC, only 1.41 years of fcf income to pay off all of its debts.
BCPC's Debt to FCF ratio of 1.41 is amongst the best of the industry. BCPC outperforms 91.46% 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 has a Debt to Equity ratio of 0.19. This is in the better half of the industry: BCPC outperforms 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 9.46 |
ROIC/WACC1.03
WACC8.92%
2.3 Liquidity
A Current Ratio of 2.98 indicates that BCPC has no problem at all paying its short term obligations.
BCPC's Current ratio of 2.98 is amongst the best of the industry. BCPC outperforms 82.93% of its industry peers.
BCPC has a Quick Ratio of 1.90. This is a normal value and indicates that BCPC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.90, BCPC is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
BCPC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.53%.
Measured over the past 5 years, BCPC shows a small growth in Earnings Per Share. The EPS has been growing by 5.73% on average per year.
Looking at the last year, BCPC shows a small growth in Revenue. The Revenue has grown by 1.75% in the last year.
BCPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.46% yearly.
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
The Earnings Per Share is expected to grow by 9.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y11.33%
EPS Next 2Y11.75%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y4.64%
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
Based on the Price/Earnings ratio of 38.34, the valuation of BCPC can be described as expensive.
65.85% of the companies in the same industry are cheaper than BCPC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.39. BCPC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 32.32, 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 the industry average as 69.51% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 24.37. BCPC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.34 | ||
| Fwd PE | 32.32 |
4.2 Price Multiples
BCPC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. BCPC is more expensive than 81.71% of the companies in the same industry.
BCPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.21 | ||
| EV/EBITDA | 24.09 |
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.
PEG (NY)3.38
PEG (5Y)6.69
EPS Next 2Y11.75%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, BCPC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.21, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.54, BCPC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of BCPC is nicely growing with an annual growth rate of 11.23%!
BCPC has paid a dividend for at least 10 years, which is 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
21.02% of the earnings are spent on dividend by BCPC. This is a low number and sustainable payout ratio.
BCPC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.02%
EPS Next 2Y11.75%
EPS Next 3Y9.6%
BALCHEM CORP
NASDAQ:BCPC (1/28/2025, 4:30:00 PM)
After market: 161.03 0 (0%)161.03
+0.14 (+0.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.66%
Inst Owner Change-0.3%
Ins Owners0.36%
Ins Owner Change-0.11%
Market Cap5.24B
Analysts82.5
Price Target194.14 (20.56%)
Short Float %1.48%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.71
Dividend Growth(5Y)11.23%
DP21.02%
Div Incr Years14
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.53%
Min EPS beat(2)-0.19%
Max EPS beat(2)3.25%
EPS beat(4)3
Avg EPS beat(4)1.56%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.25%
EPS beat(8)7
Avg EPS beat(8)9.66%
EPS beat(12)10
Avg EPS beat(12)10.96%
EPS beat(16)14
Avg EPS beat(16)8.96%
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-4.25%
Max Revenue beat(2)-2.77%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.08%
Revenue beat(8)1
Avg Revenue beat(8)-3.75%
Revenue beat(12)4
Avg Revenue beat(12)-1.14%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)0%
PT rev (3m)0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.34 | ||
| Fwd PE | 32.32 | ||
| P/S | 5.56 | ||
| P/FCF | 32.21 | ||
| P/OCF | 26.57 | ||
| P/B | 4.45 | ||
| P/tB | 23.95 | ||
| EV/EBITDA | 24.09 |
EPS(TTM)4.2
EY2.61%
EPS(NY)4.98
Fwd EY3.09%
FCF(TTM)5
FCFY3.1%
OCF(TTM)6.06
OCFY3.76%
SpS28.99
BVpS36.21
TBVpS6.72
PEG (NY)3.38
PEG (5Y)6.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 10.32% | ||
| ROCE | 11.59% | ||
| ROIC | 9.15% | ||
| ROICexc | 9.62% | ||
| ROICexgc | 29.89% | ||
| OM | 18.3% | ||
| PM (TTM) | 12.9% | ||
| GM | 34.47% | ||
| FCFM | 17.25% |
ROA(3y)7.1%
ROA(5y)7.09%
ROE(3y)10.83%
ROE(5y)10.68%
ROIC(3y)8.66%
ROIC(5y)8.42%
ROICexc(3y)9.26%
ROICexc(5y)9.02%
ROICexgc(3y)29%
ROICexgc(5y)27.74%
ROCE(3y)10.97%
ROCE(5y)10.67%
ROICexcg growth 3Y3.97%
ROICexcg growth 5Y0.01%
ROICexc growth 3Y-0.38%
ROICexc growth 5Y-2.54%
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%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 67.55% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 8.48 | ||
| Cash Conversion | 88.15% | ||
| Profit Quality | 133.71% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 9.46 |
F-Score7
WACC8.92%
ROIC/WACC1.03
Cap/Depr(3y)80.85%
Cap/Depr(5y)74.06%
Cap/Sales(3y)4.71%
Cap/Sales(5y)4.67%
Profit Quality(3y)115.39%
Profit Quality(5y)120.94%
High Growth Momentum
Growth
EPS 1Y (TTM)5.53%
EPS 3Y6.32%
EPS 5Y5.73%
EPS Q2Q%8.65%
EPS Next Y11.33%
EPS Next 2Y11.75%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue 1Y (TTM)1.75%
Revenue growth 3Y9.45%
Revenue growth 5Y7.46%
Sales Q2Q%4.35%
Revenue Next Year2.72%
Revenue Next 2Y4.64%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
EBIT growth 1Y13.21%
EBIT growth 3Y11.52%
EBIT growth 5Y7.57%
EBIT Next Year51.71%
EBIT Next 3Y16.03%
EBIT Next 5YN/A
FCF growth 1Y79.38%
FCF growth 3Y7.72%
FCF growth 5Y8.06%
OCF growth 1Y39.35%
OCF growth 3Y6.88%
OCF growth 5Y9.13%