NasdaqGS:BCPC

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.


Similar Companies

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.


Market Performance


7 Day Return

-1.1%

BCPC

0.2%

US Chemicals

0.2%

US Market


1 Year Return

11.9%

BCPC

-3.2%

US Chemicals

12.2%

US Market

Return vs Industry: BCPC exceeded the US Chemicals industry which returned -3.2% over the past year.

Return vs Market: BCPC matched the US Market which returned 12.2% over the past year.


Shareholder returns

BCPCIndustryMarket
7 Day-1.1%0.2%0.2%
30 Day1.0%6.0%3.5%
90 Day14.4%8.8%6.3%
1 Year12.6%11.9%12.0%-3.2%14.7%12.2%
3 Year34.1%32.0%44.6%17.7%47.8%38.3%
5 Year62.6%58.4%43.6%11.3%62.1%44.1%

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

Valuation

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

41.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCPC ($101.91) is trading above our estimate of fair value ($59.68)

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 (41.2x) compared to the Chemicals industry average (20.7x).

PE vs Market: BCPC is poor value based on its PE Ratio (41.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BCPC is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: BCPC is overvalued based on its PB Ratio (4.5x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Balchem forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCPC's forecast earnings growth (9.7% per year) is above the savings rate (2.7%).

Earnings vs Market: BCPC's earnings (9.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: BCPC's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BCPC's revenue (5.1% 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%).


Next Steps

Past Performance

How has Balchem performed over the past 5 years?

11.4%

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 (-21.4%).


Return on Equity

High ROE: BCPC's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Balchem's financial position?


Financial Position Analysis

Short Term Liabilities: BCPC's short term assets ($239.9M) exceeds 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).


Balance Sheet

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).


Next Steps

Dividend

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

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years0.5%

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 (1.43%).

High Dividend: BCPC's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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.


Next Steps

Management

What is the CEO of Balchem's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Ted Harris (54yo)

4.6yrs

Tenure

US$3,334,545

Compensation

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 ($USD3.33M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: BCPC's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: BCPC's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$254,22005 Aug 19
Scott Mason
EntityIndividual
Shares3,000
Max PriceUS$84.74

Ownership Breakdown

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


Management Team

  • Ted Harris (54yo)

    Chairman CEO & President

    • Tenure: 4.6yrs
    • Compensation: US$3.33m
  • Mark Stach

    General Counsel & Corporate Secretary

    • Tenure: 2.2yrs
    • Compensation: US$629.94k
  • Carl Bengtsson

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Paul Coombs (63yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$183.00k
  • John Televantos (66yo)

    Lead Director

    • Tenure: 9.3yrs
    • Compensation: US$211.25k
  • Perry Premdas (66yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$190.00k
  • Dan Knutson (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$182.50k
  • Ted Harris (54yo)

    Chairman CEO & President

    • Tenure: 4.6yrs
    • Compensation: US$3.33m
  • Dave Fischer (56yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$182.00k
  • Matt Wineinger (53yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$187.00k
  • Joyce Lee (46yo)

    Director

    • Tenure: 0.2yrs

Company Information

Balchem Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Balchem Corporation
  • Ticker: BCPC
  • Exchange: NasdaqGS
  • Founded: 1967
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$3.303b
  • Shares outstanding: 32.17m
  • Website: https://www.balchem.com

Number of Employees


Location

  • Balchem Corporation
  • 52 Sunrise Park Road
  • New Hampton
  • New York
  • 10958
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCPCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1975
BL9BDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1975

Biography

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:33
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.