BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - Nasdaq - US0576652004 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BCPC. BCPC was compared to 85 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making BCPC a very profitable company, without any liquidiy or solvency issues. BCPC is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make BCPC suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year BCPC was profitable.
BCPC had a positive operating cash flow in the past year.
BCPC had positive earnings in each of the past 5 years.
BCPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.44%, BCPC belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
The Return On Equity of BCPC (11.30%) is better than 77.65% of its industry peers.
With an excellent Return On Invested Capital value of 10.22%, BCPC belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCPC is in line with the industry average of 6.84%.
The 3 year average ROIC (8.80%) for BCPC is below the current ROIC(10.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 11.3% | ||
| ROIC | 10.22% |
ROA(3y)7.15%
ROA(5y)7.34%
ROE(3y)10.9%
ROE(5y)10.78%
ROIC(3y)8.8%
ROIC(5y)8.82%
1.3 Margins
BCPC has a Profit Margin of 14.16%. This is amongst the best in the industry. BCPC outperforms 95.29% of its industry peers.
BCPC's Profit Margin has improved in the last couple of years.
BCPC has a Operating Margin of 20.05%. This is amongst the best in the industry. BCPC outperforms 87.06% of its industry peers.
BCPC's Operating Margin has improved in the last couple of years.
The Gross Margin of BCPC (35.55%) is better than 71.76% of its industry peers.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.05% | ||
| PM (TTM) | 14.16% | ||
| GM | 35.55% |
OM growth 3Y6.43%
OM growth 5Y3.44%
PM growth 3Y3.85%
PM growth 5Y1.7%
GM growth 3Y5.02%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCPC is still creating some value.
BCPC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCPC has more shares outstanding
BCPC has a better debt/assets ratio than last year.
2.2 Solvency
BCPC has an Altman-Z score of 9.93. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
BCPC has a better Altman-Z score (9.93) than 100.00% of its industry peers.
BCPC has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
BCPC's Debt to FCF ratio of 1.27 is amongst the best of the industry. BCPC outperforms 92.94% of its industry peers.
BCPC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, BCPC belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.93 |
ROIC/WACC1.15
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.44 indicates that BCPC has no problem at all paying its short term obligations.
BCPC has a Current ratio of 2.44. This is in the better half of the industry: BCPC outperforms 65.88% of its industry peers.
BCPC has a Quick Ratio of 1.40. This is a normal value and indicates that BCPC is financially healthy and should not expect problems in meeting its short term obligations.
BCPC has a better Quick ratio (1.40) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
BCPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.01%, which is quite good.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
Looking at the last year, BCPC shows a small growth in Revenue. The Revenue has grown by 3.76% in the last year.
BCPC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.18% yearly.
EPS 1Y (TTM)12.01%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%18.45%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
3.2 Future
Based on estimates for the next years, BCPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
Based on estimates for the next years, BCPC will show a small growth in Revenue. The Revenue will grow by 6.68% on average per year.
EPS Next Y18.18%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y6.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BCPC is valuated quite expensively with a Price/Earnings ratio of 36.11.
63.53% of the companies in the same industry are cheaper than BCPC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. BCPC is valued slightly more expensive when compared to this.
BCPC is valuated quite expensively with a Price/Forward Earnings ratio of 29.55.
Based on the Price/Forward Earnings ratio, BCPC is valued a bit more expensive than 63.53% of the companies in the same industry.
BCPC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
BCPC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BCPC is more expensive than 71.76% of the companies in the same industry.
BCPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.71 | ||
| EV/EBITDA | 23.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BCPC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BCPC's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)1.99
PEG (5Y)5.52
EPS Next 2Y12.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.55%, which is pretty low.
BCPC's Dividend Yield is slightly below the industry average, which is at 3.69.
Compared to an average S&P500 Dividend Yield of 2.42, BCPC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of BCPC is nicely growing with an annual growth rate of 11.02%!
BCPC has been paying a dividend for at least 10 years, so it has a reliable track record.
BCPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.02%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
20.71% of the earnings are spent on dividend by BCPC. This is a low number and sustainable payout ratio.
BCPC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP20.71%
EPS Next 2Y12.92%
EPS Next 3YN/A
165.02
+1.82 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change-0.13%
Ins Owners0.44%
Ins Owner Change6.44%
Market Cap5.38B
Analysts82.5
Price Target200.6 (21.56%)
Short Float %1.44%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP20.71%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.65%
Min EPS beat(2)-1.56%
Max EPS beat(2)0.26%
EPS beat(4)2
Avg EPS beat(4)0.44%
Min EPS beat(4)-1.56%
Max EPS beat(4)3.25%
EPS beat(8)6
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)8.74%
EPS beat(16)13
Avg EPS beat(16)8.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-0.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.04%
Revenue beat(8)1
Avg Revenue beat(8)-3.09%
Revenue beat(12)2
Avg Revenue beat(12)-2.42%
Revenue beat(16)5
Avg Revenue beat(16)-0.61%
PT rev (1m)0%
PT rev (3m)-1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 29.55 | ||
| P/S | 5.58 | ||
| P/FCF | 35.71 | ||
| P/OCF | 29.09 | ||
| P/B | 4.45 | ||
| P/tB | 21.56 | ||
| EV/EBITDA | 23.15 |
EPS(TTM)4.57
EY2.77%
EPS(NY)5.58
Fwd EY3.38%
FCF(TTM)4.62
FCFY2.8%
OCF(TTM)5.67
OCFY3.44%
SpS29.57
BVpS37.05
TBVpS7.65
PEG (NY)1.99
PEG (5Y)5.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 11.3% | ||
| ROCE | 13.08% | ||
| ROIC | 10.22% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 32.21% | ||
| OM | 20.05% | ||
| PM (TTM) | 14.16% | ||
| GM | 35.55% | ||
| FCFM | 15.63% |
ROA(3y)7.15%
ROA(5y)7.34%
ROE(3y)10.9%
ROE(5y)10.78%
ROIC(3y)8.8%
ROIC(5y)8.82%
ROICexc(3y)9.17%
ROICexc(5y)9.39%
ROICexgc(3y)30.05%
ROICexgc(5y)29.29%
ROCE(3y)11.26%
ROCE(5y)11.29%
ROICexcg growth 3Y4.31%
ROICexcg growth 5Y6.46%
ROICexc growth 3Y0.05%
ROICexc growth 5Y5.05%
OM growth 3Y6.43%
OM growth 5Y3.44%
PM growth 3Y3.85%
PM growth 5Y1.7%
GM growth 3Y5.02%
GM growth 5Y1.43%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 75.71% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 12.45 | ||
| Cash Conversion | 77.54% | ||
| Profit Quality | 110.41% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 9.93 |
F-Score7
WACC8.9%
ROIC/WACC1.15
Cap/Depr(3y)80.14%
Cap/Depr(5y)76.56%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.53%
Profit Quality(3y)110.66%
Profit Quality(5y)119.6%
High Growth Momentum
Growth
EPS 1Y (TTM)12.01%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%18.45%
EPS Next Y18.18%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.76%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
Revenue Next Year6.51%
Revenue Next 2Y6.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.42%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year37.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.3%
FCF growth 3Y5.93%
FCF growth 5Y8.77%
OCF growth 1Y11.29%
OCF growth 3Y4.28%
OCF growth 5Y7.89%