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 moderate growth potential.


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


Market Performance


7 Day Return

2.8%

NasdaqGS:BCPC

1.8%

US Chemicals

1.1%

US Market


1 Year Return

-10.9%

NasdaqGS:BCPC

-12.8%

US Chemicals

2.1%

US Market

BCPC outperformed the Chemicals industry which returned -12.8% over the past year.

BCPC underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

BCPCIndustryMarket
7 Day2.8%1.8%1.1%
30 Day16.7%3.5%3.7%
90 Day6.7%0.8%2.3%
1 Year-10.3%-10.9%0.9%-12.8%4.4%2.1%
3 Year56.1%53.6%43.5%17.0%47.0%37.4%
5 Year86.6%81.8%36.8%6.7%61.6%43.8%

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

42.82x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Balchem's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Balchem's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Balchem is poor value based on expected growth next year.


Price Based on Value of Assets

Balchem is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Balchem expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Balchem's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Balchem's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).

Balchem's revenue growth is expected to exceed the United States of America market average.

Balchem's earnings growth is expected to exceed the United States of America market average.

Balchem's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Balchem will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Balchem performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Balchem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Balchem used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Balchem's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Balchem's financial position?


Financial Position Analysis

Balchem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Balchem's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Balchem's level of debt (31.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (112% vs 31.4% today).

Debt is well covered by operating cash flow (52.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

0.51%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Balchem's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Balchem's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

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.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Ted Harris (54yo)

4.4yrs

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

Ted's remuneration is lower than average for companies of similar size in United States of America.

Ted's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

The tenure for the Balchem management team is about average.


Board Age and Tenure

9.0yrs

Average Tenure

59yo

Average Age

The tenure for the Balchem board of directors is about average.


Insider Trading

More shares have been bought than sold by Balchem individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$254,22005 Aug 19
Scott Mason
EntityIndividual
Shares3,000
Max PriceUS$84.74
BuyUS$57,92214 Nov 18
Daniel Knutson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares650
Max PriceUS$89.11

Ownership Breakdown


Management Team

  • Ted Harris (54yo)

    Chairman CEO & President

    • Tenure: 4.4yrs
    • Compensation: US$3.33m
  • Mark Stach

    General Counsel & Corporate Secretary

    • Tenure: 2yrs
    • Compensation: US$629.94k
  • Carl Bengtsson

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Paul Coombs (63yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$183.00k
  • John Televantos (66yo)

    Lead Director

    • Tenure: 9.1yrs
    • Compensation: US$211.25k
  • Perry Premdas (66yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$190.00k
  • Dan Knutson (62yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$182.50k
  • Ted Harris (54yo)

    Chairman CEO & President

    • Tenure: 4.4yrs
    • Compensation: US$3.33m
  • Dave Fischer (56yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$182.00k
  • Matt Wineinger (53yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$187.00k
  • Joyce Lee (46yo)

    Director

    • Tenure: 0yrs

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$3.365b
  • Shares outstanding: 32.36m
  • 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 Analysis2019/09/17 23:33
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
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.