BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - US0576652004 - Common Stock
162.4 USD
+0.34 (+0.21%)
162.4 USD
0 (0%)
BCPC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. BCPC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BCPC is quite expensive at the moment. It does show a decent growth rate. These ratings would make BCPC suitable for quality investing!
1. Profitability
1.1 Basic Checks
BCPC had positive earnings in the past year.
BCPC had a positive operating cash flow in the past year.
BCPC had positive earnings in each of the past 5 years.
In the past 5 years BCPC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.51%, BCPC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
The Return On Equity of BCPC (11.26%) is better than 79.76% of its industry peers.
The Return On Invested Capital of BCPC (10.10%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCPC is above the industry average of 6.43%.
The 3 year average ROIC (8.80%) for BCPC is below the current ROIC(10.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.26% | ||
| ROIC | 10.1% |
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 14.48%. This is amongst the best in the industry. BCPC outperforms 95.24% of its industry peers.
BCPC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.19%, BCPC belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
In the last couple of years the Operating Margin of BCPC has grown nicely.
Looking at the Gross Margin, with a value of 35.80%, BCPC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.19% | ||
| PM (TTM) | 14.48% | ||
| GM | 35.8% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCPC is creating some value.
Compared to 1 year ago, BCPC has more shares outstanding
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 9.74. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.74, BCPC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of BCPC is 1.25, which is an excellent value as it means it would take BCPC, only 1.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.25, BCPC belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
BCPC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
BCPC has a Debt to Equity ratio of 0.15. This is amongst the best in the industry. BCPC outperforms 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.74 |
ROIC/WACC1.13
WACC8.92%
2.3 Liquidity
BCPC has a Current Ratio of 2.64. This indicates that BCPC is financially healthy and has no problem in meeting its short term obligations.
BCPC has a Current ratio of 2.64. This is in the better half of the industry: BCPC outperforms 70.24% of its industry peers.
BCPC has a Quick Ratio of 1.57. This is a normal value and indicates that BCPC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BCPC (1.57) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
BCPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.57%, which is quite good.
BCPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.55% yearly.
BCPC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
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)15.57%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%16.51%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%9.14%
3.2 Future
The Earnings Per Share is expected to grow by 13.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.87% on average over the next years.
EPS Next Y18.77%
EPS Next 2Y13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.43%
Revenue Next 2Y6.87%
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
A Price/Earnings ratio of 34.19 indicates a quite expensive valuation of BCPC.
BCPC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BCPC to the average of the S&P500 Index (27.08), we can say BCPC is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.95, BCPC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BCPC is valued a bit more expensive than 63.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. BCPC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.19 | ||
| Fwd PE | 28.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCPC is valued a bit more expensive than 70.24% of the companies in the same industry.
BCPC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.44 | ||
| EV/EBITDA | 22.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BCPC does not grow enough to justify the current Price/Earnings ratio.
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 13.17% in the coming years.
PEG (NY)1.82
PEG (5Y)5.22
EPS Next 2Y13.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, BCPC is not a good candidate for dividend investing.
BCPC's Dividend Yield is slightly below the industry average, which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.34, BCPC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of BCPC grows each year by 11.02%, which is quite nice.
BCPC has been paying a dividend for at least 10 years, so it has a reliable track record.
BCPC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.02%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
19.81% 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.
DP19.81%
EPS Next 2Y13.17%
EPS Next 3YN/A
162.4
+0.34 (+0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.15%
Inst Owner Change-0.97%
Ins Owners0.44%
Ins Owner Change-0.09%
Market Cap5.27B
Analysts82.5
Price Target204.34 (25.83%)
Short Float %1.51%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP19.81%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.56%
Max EPS beat(2)-0.39%
EPS beat(4)1
Avg EPS beat(4)-0.47%
Min EPS beat(4)-1.56%
Max EPS beat(4)0.26%
EPS beat(8)5
Avg EPS beat(8)1.21%
EPS beat(12)9
Avg EPS beat(12)7.54%
EPS beat(16)12
Avg EPS beat(16)8.13%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-2.15%
Revenue beat(12)2
Avg Revenue beat(12)-2.66%
Revenue beat(16)5
Avg Revenue beat(16)-1.04%
PT rev (1m)1.86%
PT rev (3m)1.86%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.19 | ||
| Fwd PE | 28.95 | ||
| P/S | 5.35 | ||
| P/FCF | 34.44 | ||
| P/OCF | 28.14 | ||
| P/B | 4.16 | ||
| P/tB | 18.85 | ||
| EV/EBITDA | 22.19 |
EPS(TTM)4.75
EY2.92%
EPS(NY)5.61
Fwd EY3.45%
FCF(TTM)4.72
FCFY2.9%
OCF(TTM)5.77
OCFY3.55%
SpS30.37
BVpS39.06
TBVpS8.62
PEG (NY)1.82
PEG (5Y)5.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.26% | ||
| ROCE | 12.92% | ||
| ROIC | 10.1% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 31.97% | ||
| OM | 20.19% | ||
| PM (TTM) | 14.48% | ||
| GM | 35.8% | ||
| FCFM | 15.53% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 77.45% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 14.8 | ||
| Cash Conversion | 77.02% | ||
| Profit Quality | 107.24% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 9.74 |
F-Score7
WACC8.92%
ROIC/WACC1.13
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)15.57%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%16.51%
EPS Next Y18.77%
EPS Next 2Y13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.75%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%9.14%
Revenue Next Year7.43%
Revenue Next 2Y6.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.65%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year40.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y45.1%
FCF growth 3Y5.93%
FCF growth 5Y8.77%
OCF growth 1Y22.44%
OCF growth 3Y4.28%
OCF growth 5Y7.89%