Balchem (NasdaqGS:BCPC) - Share price, News & Analysis

BCPC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

BCPC Stock Overview

Rewards

Earnings are forecast to grow 10.87% per year

Earnings have grown 5% per year over the past 5 years

Risk Analysis

No risks detected for BCPC from our risk checks.

Balchem Competitors

Celanese

NYSE:CE

US$16.3b

Advanced Emissions Solutions

NasdaqGM:ADES

US$94.5m

BASF

XTRA:BAS

€44.1b

Ajinomoto

TSE:2802

JP¥1.7t

Price History & Performance

Summary of all time highs, changes and price drops for Balchem
Historical stock prices
Current Share Price	US$120.52
52 Week High	US$174.29
52 Week Low	US$114.79
Beta	0.66
1 Month Change	-9.77%
3 Month Change	-12.67%
1 Year Change	-6.81%
3 Year Change	28.42%
5 Year Change	50.69%
Change since IPO	76,167.38%

Recent News & Updates

May 18

Balchem Corporation's (NASDAQ:BCPC) Intrinsic Value Is Potentially 17% Below Its Share Price

Today we will run through one way of estimating the intrinsic value of Balchem Corporation ( NASDAQ:BCPC ) by...

May 02

Does Balchem (NASDAQ:BCPC) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Mar 28

Does Balchem (NASDAQ:BCPC) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	BCPC	US Chemicals	US Market
7D	1.4%	0.4%	-2.7%
1Y	-6.8%	-4.1%	-12.9%

Return vs Industry: BCPC underperformed the US Chemicals industry which returned -3.3% over the past year.

Return vs Market: BCPC exceeded the US Market which returned -12.7% over the past year.

Price Volatility

Is BCPC's price volatile compared to industry and market?
BCPC volatility
BCPC Average Weekly Movement	3.7%
Chemicals Industry Average Movement	7.1%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: BCPC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BCPC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	1,327	Ted Harris	https://www.balchem.com

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States and internationally. It operates through three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry.

Balchem Fundamentals Summary

How do Balchem's earnings and revenue compare to its market cap?
BCPC fundamental statistics
Market Cap	US$3.87b
Earnings (TTM)	US$101.62m
Revenue (TTM)	US$842.23m

38.1x

P/E Ratio

4.6x

P/S Ratio

Is BCPC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCPC income statement (TTM)
Revenue	US$842.23m
Cost of Revenue	US$586.28m
Gross Profit	US$255.95m
Other Expenses	US$154.33m
Earnings	US$101.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.16
Gross Margin	30.39%
Net Profit Margin	12.07%
Debt/Equity Ratio	14.7%

How did BCPC perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is Balchem undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

38.09x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BCPC ($120.52) is trading above our estimate of fair value ($99.84)

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 (38.1x) compared to the US Chemicals industry average (16.9x).

PE vs Market: BCPC is poor value based on its PE Ratio (38.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: BCPC is poor value based on its PEG Ratio (3.5x)

Price to Book Ratio

PB vs Industry: BCPC is overvalued based on its PB Ratio (4.4x) compared to the US Chemicals industry average (2.3x).

Future Growth

How is Balchem forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCPC's forecast earnings growth (10.9% per year) is above the savings rate (1.9%).

Earnings vs Market: BCPC's earnings (10.9% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: BCPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BCPC's revenue (6.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: BCPC's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BCPC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Balchem performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BCPC has high quality earnings.

Growing Profit Margin: BCPC's current net profit margins (12.1%) are lower than last year (12.3%).

Past Earnings Growth Analysis

Earnings Trend: BCPC's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: BCPC's earnings growth over the past year (15.1%) exceeds its 5-year average (5% per year).

Earnings vs Industry: BCPC earnings growth over the past year (15.1%) underperformed the Chemicals industry 31.5%.

Return on Equity

High ROE: BCPC's Return on Equity (11.6%) is considered low.

Financial Health

How is Balchem's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BCPC's short term assets ($319.8M) exceed its short term liabilities ($123.5M).

Long Term Liabilities: BCPC's short term assets ($319.8M) exceed its long term liabilities ($197.7M).

Debt to Equity History and Analysis

Debt Level: BCPC's net debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: BCPC's debt to equity ratio has reduced from 49.6% to 14.7% over the past 5 years.

Debt Coverage: BCPC's debt is well covered by operating cash flow (98.7%).

Interest Coverage: BCPC's interest payments on its debt are well covered by EBIT (59.6x coverage).

Balance Sheet

Dividend

What is Balchem current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BCPC's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: BCPC's dividend (0.53%) is low compared to the top 25% of dividend payers in the US market (4.09%).

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.

Earnings Payout to Shareholders

Earnings Coverage: BCPC is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: BCPC is not paying a notable dividend for the US market.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Ted Harris (56 yo)

7.08yrs

Tenure

US$5,761,673

Compensation

Mr. Theodore L. Harris, also known as Ted, has been the Chief Executive Officer and President at Balchem Corporation since April 28, 2015. He serves as an Independent Director of Pentair Plc since April 30...

CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD5.76M) is about average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Ted's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BCPC's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: BCPC's board of directors are considered experienced (6.9 years average tenure).

Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31