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Balchem

Nasdaq:BCPC
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BCPC
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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 last earnings update was 80 days ago. More info.


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BCPC Share Price and Events
7 Day Returns
0.1%
NasdaqGS:BCPC
-0.2%
US Chemicals
-1.2%
US Market
1 Year Returns
-1.2%
NasdaqGS:BCPC
-10.5%
US Chemicals
3.3%
US Market
BCPC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Balchem (BCPC) 0.1% -2.2% -0.9% -1.2% 57.4% 97%
US Chemicals -0.2% 0.4% -4.2% -10.5% 16% 5.6%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • BCPC outperformed the Chemicals industry which returned -10.5% over the past year.
  • BCPC underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
BCPC
Industry
5yr Volatility vs Market

Value

 Is Balchem undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Balchem to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Balchem.

NasdaqGS:BCPC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:BCPC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.888 (1 + (1- 21%) (4.67%))
0.947
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.947 * 5.96%)
8.37%

Discounted Cash Flow Calculation for NasdaqGS:BCPC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Balchem is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:BCPC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.37%)
2020 99.86 Analyst x2 92.15
2021 100.45 Est @ 0.59% 85.53
2022 101.69 Est @ 1.23% 79.89
2023 103.40 Est @ 1.68% 74.96
2024 105.46 Est @ 2% 70.55
2025 107.80 Est @ 2.22% 66.54
2026 110.35 Est @ 2.37% 62.85
2027 113.09 Est @ 2.48% 59.43
2028 115.97 Est @ 2.55% 56.24
2029 119.00 Est @ 2.61% 53.25
Present value of next 10 years cash flows $701.38
NasdaqGS:BCPC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $119.00 × (1 + 2.73%) ÷ (8.37% – 2.73%)
$2,166.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,166.24 ÷ (1 + 8.37%)10
$969.37
NasdaqGS:BCPC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $701.38 + $969.37
$1,670.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,670.75 / 32.33
$51.67
NasdaqGS:BCPC Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.67
Current discount Discount to share price of $98.00
= -1 x ($98.00 - $51.67) / $51.67
-89.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Balchem is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Balchem's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Balchem's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BCPC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.43
NasdaqGS:BCPC Share Price ** NasdaqGS (2019-07-22) in USD $98
United States of America Chemicals Industry PE Ratio Median Figure of 67 Publicly-Listed Chemicals Companies 18.82x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Balchem.

NasdaqGS:BCPC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:BCPC Share Price ÷ EPS (both in USD)

= 98 ÷ 2.43

40.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balchem is overvalued based on earnings compared to the US Chemicals industry average.
  • Balchem is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Balchem's expected growth come at a high price?
Raw Data
NasdaqGS:BCPC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
15.8%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:BCPC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.38x ÷ 15.8%

2.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balchem is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Balchem's assets?
Raw Data
NasdaqGS:BCPC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $21.98
NasdaqGS:BCPC Share Price * NasdaqGS (2019-07-22) in USD $98
United States of America Chemicals Industry PB Ratio Median Figure of 93 Publicly-Listed Chemicals Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NasdaqGS:BCPC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:BCPC Share Price ÷ Book Value per Share (both in USD)

= 98 ÷ 21.98

4.46x

* Primary Listing of Balchem.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balchem is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Balchem's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Balchem has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Balchem expected to grow at an attractive rate?
  • Balchem's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Balchem's earnings growth is expected to exceed the United States of America market average.
  • Balchem's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BCPC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BCPC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 15.8%
NasdaqGS:BCPC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 5.8%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:BCPC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BCPC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 706 134 104 4
2019-12-31 666 117 91 4
NasdaqGS:BCPC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 639 116 78
2018-12-31 644 119 79
2018-09-30 639 110 100
2018-06-30 635 112 97
2018-03-31 618 113 94
2017-12-31 595 111 90
2017-09-30 576 107 64
2017-06-30 564 97 62
2017-03-31 556 101 60
2016-12-31 553 108 56
2016-09-30 545 105 56
2016-06-30 547 110 56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Balchem's earnings are expected to grow by 15.8% yearly, however this is not considered high growth (20% yearly).
  • Balchem's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:BCPC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Balchem Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BCPC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.20 3.71 2.69 5.00
2019-12-31 2.70 2.95 2.37 5.00
NasdaqGS:BCPC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.43
2018-12-31 2.45
2018-09-30 3.13
2018-06-30 3.03
2018-03-31 2.94
2017-12-31 2.83
2017-09-30 2.02
2017-06-30 1.96
2017-03-31 1.89
2016-12-31 1.78
2016-09-30 1.77
2016-06-30 1.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Balchem will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Balchem's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Balchem has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Balchem performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Balchem's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Balchem's year on year earnings growth rate has been positive over the past 5 years.
  • Balchem's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Balchem's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.
Earnings and Revenue History
Balchem's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Balchem Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BCPC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 639.30 78.01 81.40 11.92
2018-12-31 643.68 78.57 83.12 11.59
2018-09-30 639.40 100.21 82.79 10.84
2018-06-30 635.08 97.04 83.41 11.01
2018-03-31 618.47 93.90 81.34 10.06
2017-12-31 594.79 90.07 80.29 9.31
2017-09-30 576.29 64.02 82.02 8.59
2017-06-30 564.08 61.99 81.58 7.56
2017-03-31 555.79 59.60 81.70 7.20
2016-12-31 553.20 55.97 82.70 7.33
2016-09-30 545.17 55.71 76.82 7.08
2016-06-30 546.79 55.67 75.59 6.91
2016-03-31 542.77 56.44 72.42 6.48
2015-12-31 552.49 59.72 68.15 5.99
2015-09-30 582.43 63.09 70.55 5.92
2015-06-30 602.79 64.29 69.57 5.86
2015-03-31 600.25 59.10 67.68 5.49
2014-12-31 541.38 52.83 57.22 4.81
2014-09-30 460.35 44.55 48.23 4.30
2014-06-30 387.45 41.03 37.14 3.73
2014-03-31 338.52 42.88 29.76 3.56
2013-12-31 337.17 44.87 28.20 3.62
2013-09-30 335.60 44.02 28.08 3.46
2013-06-30 323.12 43.24 27.67 3.48
2013-03-31 318.84 41.63 27.16 3.48
2012-12-31 310.39 40.01 26.34 3.42
2012-09-30 300.07 39.61 26.30 3.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Balchem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Balchem used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Balchem has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Balchem's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Balchem has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Balchem's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Balchem's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Balchem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Balchem's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Balchem's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Balchem Company Filings, last reported 3 months ago.

NasdaqGS:BCPC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 710.51 140.00 39.00
2018-12-31 691.62 156.00 54.27
2018-09-30 685.20 178.00 42.67
2018-06-30 663.22 210.75 62.48
2018-03-31 639.89 210.32 42.68
2017-12-31 616.88 218.96 40.42
2017-09-30 585.94 235.60 34.74
2017-06-30 562.38 275.73 43.60
2017-03-31 542.30 268.86 37.00
2016-12-31 521.03 280.49 38.64
2016-09-30 516.42 298.11 32.53
2016-06-30 496.15 323.73 33.42
2016-03-31 480.25 352.35 39.17
2015-12-31 463.71 295.96 84.80
2015-09-30 457.32 306.25 81.56
2015-06-30 438.22 315.00 72.24
2015-03-31 411.22 323.75 56.61
2014-12-31 391.90 332.50 50.29
2014-09-30 376.64 341.25 25.40
2014-06-30 356.22 400.00 59.71
2014-03-31 344.20 0.00 207.33
2013-12-31 331.36 0.00 208.75
2013-09-30 322.88 0.00 190.18
2013-06-30 305.39 0.00 171.22
2013-03-31 288.07 0.00 149.09
2012-12-31 273.01 0.00 144.74
2012-09-30 267.28 0.00 147.18
  • Balchem's level of debt (19.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.3% vs 19.7% today).
  • Debt is well covered by operating cash flow (82.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.8x coverage).
X
Financial health checks
We assess Balchem's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Balchem has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.48%
Current annual income from Balchem dividends. Estimated to be 0.54% next year.
If you bought $2,000 of Balchem shares you are expected to receive $10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Balchem's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Balchem's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:BCPC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 56 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:BCPC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.55 1.00
2019-12-31 0.51 1.00
NasdaqGS:BCPC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-13 0.470 0.518
2017-12-15 0.420 0.462
2016-12-15 0.380 0.470
2015-12-18 0.340 0.523
2014-12-19 0.300 0.506
2013-12-13 0.260 0.463
2012-11-30 0.220 0.486
2012-08-03 0.180 0.509
2012-08-01 0.180 0.540
2011-12-05 0.180 0.551
2010-12-10 0.150 0.395
2009-12-11 0.110 0.436
2008-12-11 0.073 0.440

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balchem is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Balchem is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Balchem's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Balchem's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Balchem's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Balchem's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Balchem afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Balchem has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ted Harris
COMPENSATION $3,334,545
AGE 54
TENURE AS CEO 4.3 years
CEO Bio

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 served as a Senior Vice President of Ashland Inc., from July 2011 to April 17, 2015 and also served as its President of Performance Materials from July 2009 to April 17, 2015 and President of Global Supply Chain since 2008. He served as the President of Global Supply Chain, Environmental Health & Safety and Information Technology of Ashland Inc. since November 2008 and also served as its Vice President since 2006. He served as President of Nexeo Solutions, LLC (also known as Ashland Distribution Company of Ashland Inc). from October 12, 2006 to November 2008. He served as Vice President of Performance Maerials division, vice president - Ashland Specialty Chemical and General Manager of Composite Polymers of Ashland Inc. since January 26, 2004. He joined Ashland Inc. in January, 2004. Prior to Ashland, Mr. Harris worked for FMC Corporation, where he last served as General Manager of the Food Ingredients Division within its Food, Pharmaceutical and Personal Care Group. He joined FMC in 1992. He has been Chairman of the Board at Balchem Corp. since January 1, 2017. He has been a Director of Balchem Corp. since April 28, 2015. Mr. Harris earned a Bachelor's degree in Chemical Engineering from Lehigh University. He also holds a Master's in Business Administration from the Harvard Graduate School of Business Administration.

CEO Compensation
  • Ted's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Ted's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Balchem management team in years:

1.8
Average Tenure
  • The average tenure for the Balchem management team is less than 2 years, this suggests a new team.
Management Team

Ted Harris

TITLE
Chairman CEO & President
COMPENSATION
$3M
AGE
54
TENURE
4.3 yrs

Mark Stach

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$630K
TENURE
1.8 yrs

Carl Bengtsson

TITLE
Chief Financial Officer
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Balchem board of directors in years:

8.8
Average Tenure
62
Average Age
  • The tenure for the Balchem board of directors is about average.
Board of Directors

John Televantos

TITLE
Lead Director
COMPENSATION
$211K
AGE
66
TENURE
8.9 yrs

Ted Harris

TITLE
Chairman CEO & President
COMPENSATION
$3M
AGE
54
TENURE
2.5 yrs

Matt Wineinger

TITLE
Independent Director
COMPENSATION
$187K
AGE
53
TENURE
3.8 yrs

Dan Knutson

TITLE
Director
COMPENSATION
$183K
AGE
62
TENURE
1.4 yrs

Perry Premdas

TITLE
Independent Director
COMPENSATION
$190K
AGE
66
TENURE
11.5 yrs

Paul Coombs

TITLE
Independent Director
COMPENSATION
$183K
AGE
63
TENURE
8.8 yrs

Dave Fischer

TITLE
Independent Director
COMPENSATION
$182K
AGE
56
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 18 Buy Daniel Knutson Individual 13. Nov 18 13. Nov 18 650 $89.11 $57,922
X
Management checks
We assess Balchem's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Balchem has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholders Own Balchem Corporation (NASDAQ:BCPC)?

We also tend to see lower insider ownership in companies that were previously publicly owned. … Our analysis of the ownership of the company, below, shows that institutions own shares in the company. … See our latest analysis for Balchem NasdaqGS:BCPC Ownership Summary, July 13th 2019 What Does The Institutional Ownership Tell Us About Balchem?

Simply Wall St -

Is Balchem (NASDAQ:BCPC) Using Too Much Debt?

When we think about a company's use of debt, we first look at cash and debt together. … Either way, since Balchem does have more debt than cash, it's worth keeping an eye on its balance sheet. … Fortunately, Balchem grew its EBIT by 3.8% in the last year, making that debt load look even more manageable.

Simply Wall St -

Should You Buy Balchem Corporation (NASDAQ:BCPC) When Prices Drop?

High quality stocks such as Balchem Corporation has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Next Steps: Balchem makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

Should You Be Tempted To Sell Balchem Corporation (NASDAQ:BCPC) Because Of Its P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Balchem: P/E of 39.81 = $96.61 ÷ $2.43 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … How Does Balchem's Debt Impact Its P/E Ratio?

Simply Wall St -

Should You Be Concerned About Balchem Corporation's (NASDAQ:BCPC) Historical Volatility?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market. … We shouldn't be surprised to see a large company like this with a beta value quite close to the market average.

Simply Wall St -

Is Balchem Corporation's (NASDAQ:BCPC) CEO Pay Fair?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Balchem How Does Ted Harris's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Balchem Corporation has a market cap of US$3.2b, and is paying total annual CEO compensation of US$3.3m.

Simply Wall St -

Read This Before Judging Balchem Corporation's (NASDAQ:BCPC) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.11. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Interested In Balchem Corporation (NASDAQ:BCPC)? Here's How It Performed Recently

Today I will assess BCPC's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements. … Was BCPC weak performance lately part of a long-term decline. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 15%, indicating the rate at which BCPC is growing has slowed down

Simply Wall St -

If You Had Bought Balchem (NASDAQ:BCPC) Stock Five Years Ago, You Could Pocket A 55% Gain Today

For example, long term Balchem Corporation (NASDAQ:BCPC) shareholders have enjoyed a 55% share price rise over the last half decade, well in excess of the market return of around 44% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Balchem achieved compound earnings per share (EPS) growth of 10% per year.

Simply Wall St -

All You Need To Know About Balchem Corporation's (NASDAQ:BCPC) Financial Health

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Balchem Corporation (NASDAQ:BCPC), with a market cap of US$3.0b, often get neglected by retail investors. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … Today we will look at BCPC’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth.

Simply Wall St -

Company Info

Description

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.

Details
Name: Balchem Corporation
BCPC
Exchange: NasdaqGS
Founded: 1967
$3,168,687,508
32,333,546
Website: http://www.balchem.com
Address: Balchem Corporation
52 Sunrise Park Road,
New Hampton,
New York, 10958,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BCPC Common Shares Nasdaq Global Select US USD 06. Jan 1975
DB BL9B Common Shares Deutsche Boerse AG DE EUR 06. Jan 1975
Number of employees
Current staff
Staff numbers
1,135
Balchem employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:32
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.