Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally.
No risks detected for BCPC from our risk checks.
Excellent balance sheet with questionable track record.
Share Price & News
How has Balchem's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BCPC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: BCPC exceeded the US Chemicals industry which returned -3.7% over the past year.
Return vs Market: BCPC exceeded the US Market which returned 20.1% over the past year.
Price Volatility Vs. Market
How volatile is Balchem's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall StIs Balchem Corporation's (NASDAQ:BCPC) CEO Pay Fair?
2 weeks ago | Simply Wall StBalchem (NASDAQ:BCPC) Has A Pretty Healthy Balance Sheet
3 weeks ago | Simply Wall StAt US$107, Is It Time To Put Balchem Corporation (NASDAQ:BCPC) On Your Watch List?
Is Balchem undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BCPC ($112.06) is trading above our estimate of fair value ($68.18)
Significantly Below Fair Value: BCPC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BCPC is poor value based on its PE Ratio (45.3x) compared to the Chemicals industry average (22.2x).
PE vs Market: BCPC is poor value based on its PE Ratio (45.3x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: BCPC is poor value based on its PEG Ratio (5.2x)
Price to Book Ratio
PB vs Industry: BCPC is overvalued based on its PB Ratio (4.9x) compared to the US Chemicals industry average (2.1x).
How is Balchem forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BCPC's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).
Earnings vs Market: BCPC's earnings (8.7% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: BCPC's earnings are forecast to grow, but not significantly.
Revenue vs Market: BCPC's revenue (5.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: BCPC's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BCPC's Return on Equity is forecast to be low in 3 years time (10.8%).
How has Balchem performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BCPC has high quality earnings.
Growing Profit Margin: BCPC's current net profit margins (12.4%) are lower than last year (15.7%).
Past Earnings Growth Analysis
Earnings Trend: BCPC's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: BCPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BCPC had negative earnings growth (-20.5%) over the past year, making it difficult to compare to the Chemicals industry average (-14.6%).
Return on Equity
High ROE: BCPC's Return on Equity (10.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Balchem's financial position?
Financial Position Analysis
Short Term Liabilities: BCPC's short term assets ($239.9M) exceed its short term liabilities ($72.0M).
Long Term Liabilities: BCPC's short term assets ($239.9M) do not cover its long term liabilities ($291.0M).
Debt to Equity History and Analysis
Debt Level: BCPC's debt to equity ratio (30.1%) is considered satisfactory.
Reducing Debt: BCPC's debt to equity ratio has reduced from 90.5% to 30.1% over the past 5 years.
Debt Coverage: BCPC's debt is well covered by operating cash flow (59.3%).
Interest Coverage: BCPC's interest payments on its debt are well covered by EBIT (17x coverage).
Inventory Level: BCPC has a high level of physical assets or inventory.
Debt Coverage by Assets: BCPC's debt is covered by short term assets (assets are 1.1x debt).
What is Balchem's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BCPC's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: BCPC's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: BCPC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: BCPC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: BCPC is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BCPC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ted Harris (54yo)
Mr. Theodore L. Harris, also known as Ted, has been the Chief Executive Officer and President at Balchem Corp. since April 28, 2015. He serves as Director of Pentair Plc since April 30, 2018. Mr. Harris se ...
CEO Compensation Analysis
Compensation vs Market: Ted's total compensation ($USD3.33M) is below average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Ted's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Chairman CEO & President||4.8yrs||US$3.33m||0.14% $4.9m|
|General Counsel & Corporate Secretary||2.4yrs||US$629.94k||0.013% $466.8k|
|Chief Financial Officer||1yrs||no data||0.038% $1.4m|
|Senior VP and GM of Human Nutrition & Health||0yrs||no data||no data|
Experienced Management: BCPC's management team is considered experienced (2.4 years average tenure).
|Chairman CEO & President||4.8yrs||US$3.33m||0.14% $4.9m|
|Independent Director||9.4yrs||US$183.00k||0.067% $2.4m|
|Lead Director||9.5yrs||US$211.25k||0.090% $3.3m|
|Independent Director||12.1yrs||US$190.00k||0.15% $5.5m|
|Independent Director||2yrs||US$182.50k||0.0071% $254.9k|
|Independent Director||9.4yrs||US$182.00k||0.056% $2.0m|
|Independent Director||4.4yrs||US$187.00k||0.015% $528.8k|
|Director||0.4yrs||no data||no data|
Experienced Board: BCPC's board of directors are considered experienced (6.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Balchem Corporation's company bio, employee growth, exchange listings and data sources
- Name: Balchem Corporation
- Ticker: BCPC
- Exchange: NasdaqGS
- Founded: 1967
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$3.605b
- Shares outstanding: 32.17m
- Website: https://www.balchem.com
Number of Employees
- Balchem Corporation
- 52 Sunrise Park Road
- New Hampton
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BCPC||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Jan 1975|
|BL9B||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 1975|
Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company’s Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment also offers microencapsulation solutions; and human grade choline nutrients and mineral amino acid chelated products for wellness applications. Its Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The company’s Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. It also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company’s Industrial Products segment provides choline chloride derivatives for hydraulic fracturing of shale natural gas wells; and methylamines, which are building blocks for the manufacture of choline products, as well as used in industrial applications. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 23:31|
|End of Day Share Price||2020/02/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.