NasdaqGS:BCPC

Stock Analysis Report

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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.

Rewards

Earnings are forecast to grow 9.69% per year

Earnings grew by 4.8% over the past year

Risk Analysis

No risks detected for BCPC from our risk checks.


Snowflake Analysis

Excellent balance sheet with acceptable 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

3.1%

US Chemicals

1.2%

US Market


1 Year Return

16.7%

BCPC

6.4%

US Chemicals

16.8%

US Market

Return vs Industry: BCPC exceeded the US Chemicals industry which returned 5.6% over the past year.

Return vs Market: BCPC matched the US Market which returned 16.4% over the past year.


Shareholder returns

BCPCIndustryMarket
7 Day1.1%3.1%1.2%
30 Day9.0%7.7%4.9%
90 Day20.7%25.2%20.0%
1 Year17.3%16.7%8.9%6.4%19.3%16.8%
3 Year37.9%35.6%26.2%2.7%43.7%34.4%
5 Year73.0%68.5%54.0%20.4%75.5%56.6%

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?

40.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCPC ($102.82) is trading above our estimate of fair value ($58.45)

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 (40.3x) compared to the US Chemicals industry average (26.6x).

PE vs Market: BCPC is poor value based on its PE Ratio (40.3x) compared to the US market (18.9x).


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 (4.2x) 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 (2.2%).

Earnings vs Market: BCPC's earnings (9.7% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: BCPC's revenue (5.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BCPC's revenue (5.8% 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


Next Steps

Past Performance

How has Balchem performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCPC has high quality earnings.

Growing Profit Margin: BCPC's current net profit margins (12.2%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: BCPC's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: BCPC's earnings growth over the past year (4.8%) is below its 5-year average (8.6% per year).

Earnings vs Industry: BCPC earnings growth over the past year (4.8%) exceeded the Chemicals industry -20.5%.


Return on Equity

High ROE: BCPC's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Balchem's financial position?


Financial Position Analysis

Short Term Liabilities: BCPC's short term assets ($263.9M) exceed its short term liabilities ($68.0M).

Long Term Liabilities: BCPC's short term assets ($263.9M) do not cover its long term liabilities ($290.8M).


Debt to Equity History and Analysis

Debt Level: BCPC's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: BCPC's debt to equity ratio has reduced from 71.8% to 27.6% over the past 5 years.

Debt Coverage: BCPC's debt is well covered by operating cash flow (65.3%).

Interest Coverage: BCPC's interest payments on its debt are well covered by EBIT (19.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BCPC's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BCPC's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (4.35%).


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

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

2.9yrs

Average management tenure


CEO

Ted Harris (55 yo)

5.33yrs

Tenure

US$3,808,410

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 ($USD3.81M) is below average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Ted's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Theodore Harris
Chairman CEO & President5.33yrsUS$3.81m0.16%
$ 5.3m
Carl Bengtsson
CFO & Treasurer1.5yrsUS$2.34m0.041%
$ 1.4m
Mark Stach
General Counsel & Corporate Secretary2.92yrsUS$873.53k0.016%
$ 520.5k
Jim Hyde
Senior VP and GM of Human Nutrition & Healthno datano datano data

2.9yrs

Average Tenure

Experienced Management: BCPC's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Theodore Harris
Chairman CEO & President5.33yrsUS$3.81m0.16%
$ 5.3m
Paul Coombs
Independent Director9.92yrsUS$186.84k0.069%
$ 2.3m
John Televantos
Lead Independent Director10yrsUS$214.34k0.089%
$ 3.0m
Perry Premdas
Independent Director12.58yrsUS$186.84k0.15%
$ 5.1m
Daniel Knutson
Independent Director2.5yrsUS$195.84k0.0089%
$ 296.0k
David Fischer
Independent Director9.92yrsUS$186.84k0.058%
$ 1.9m
Matthew Wineinger
Independent Director4.92yrsUS$194.84k0.016%
$ 547.5k
Joyce Lee
Independent Director0.92yrUS$19.00k0.0019%
$ 62.5k

7.4yrs

Average Tenure

60yo

Average Age

Experienced Board: BCPC's board of directors are considered experienced (7.4 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.


Ownership Breakdown

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


Top Shareholders

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$3.326b
  • Shares outstanding: 32.35m
  • 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 Analysis2020/08/10 23:42
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.