BALCHEM CORP (BCPC) Stock Fundamental Analysis
USA - NASDAQ:BCPC - US0576652004 - Common Stock
156.44 USD
+3.82 (+2.5%)
156.44 USD
0 (0%)
Taking everything into account, BCPC scores 7 out of 10 in our fundamental rating. BCPC was compared to 83 industry peers in the Chemicals industry. BCPC gets an excellent profitability rating and is at the same time showing great financial health properties. BCPC is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make BCPC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year BCPC was profitable.
In the past year BCPC had a positive cash flow from operations.
In the past 5 years BCPC has always been profitable.
In the past 5 years BCPC always reported a positive cash flow from operatings.
1.2 Ratios
BCPC's Return On Assets of 8.51% is amongst the best of the industry. BCPC outperforms 89.16% of its industry peers.
With a decent Return On Equity value of 11.26%, BCPC is doing good in the industry, outperforming 79.52% of the companies in the same industry.
The Return On Invested Capital of BCPC (10.10%) is better than 86.75% of its industry peers.
BCPC had an Average Return On Invested Capital over the past 3 years of 8.80%. This is above the industry average of 6.34%.
The last Return On Invested Capital (10.10%) for BCPC is above the 3 year average (8.80%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 14.48%, BCPC belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
In the last couple of years the Profit Margin of BCPC has grown nicely.
Looking at the Operating Margin, with a value of 20.19%, BCPC belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
In the last couple of years the Operating Margin of BCPC has grown nicely.
BCPC has a better Gross Margin (35.80%) than 72.29% of its industry peers.
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
The number of shares outstanding for BCPC has been increased compared to 5 years ago.
Compared to 1 year ago, BCPC has an improved debt to assets ratio.
2.2 Solvency
BCPC has an Altman-Z score of 9.46. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BCPC (9.46) is better than 98.80% of its industry peers.
BCPC has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
BCPC has a Debt to FCF ratio of 1.25. This is amongst the best in the industry. BCPC outperforms 96.39% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that BCPC is not too dependend on debt financing.
BCPC has a better Debt to Equity ratio (0.15) than 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.46 |
ROIC/WACC1.13
WACC8.96%
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 better Current ratio (2.64) than 71.08% of its industry peers.
A Quick Ratio of 1.57 indicates that BCPC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.57, BCPC is doing good in the industry, outperforming 68.67% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 5.75% in the past year.
The Revenue has been growing by 8.18% on average over the past years. This is quite good.
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
Based on estimates for the next years, BCPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.17% on average per year.
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
BCPC is valuated quite expensively with a Price/Earnings ratio of 32.93.
The rest of the industry has a similar Price/Earnings ratio as BCPC.
BCPC is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.89, the valuation of BCPC can be described as expensive.
Based on the Price/Forward Earnings ratio, BCPC is valued a bit more expensive than 63.86% 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCPC indicates a slightly more expensive valuation: BCPC is more expensive than 67.47% of the companies listed 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 | 33.17 | ||
| EV/EBITDA | 21.4 |
4.3 Compensation for Growth
BCPC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BCPC may justify a higher PE ratio.
BCPC's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)5.03
EPS Next 2Y13.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 3.43, BCPC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, BCPC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of BCPC grows each year by 11.02%, which is quite nice.
BCPC has paid a dividend for at least 10 years, which is 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
BCPC pays out 19.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of BCPC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.81%
EPS Next 2Y13.17%
EPS Next 3YN/A
156.44
+3.82 (+2.5%)
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 Cap5.08B
Analysts82.5
Price Target204.34 (30.62%)
Short Float %1.45%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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)1.52%
PT rev (3m)1.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 27.89 | ||
| P/S | 5.15 | ||
| P/FCF | 33.17 | ||
| P/OCF | 27.11 | ||
| P/B | 4.01 | ||
| P/tB | 18.16 | ||
| EV/EBITDA | 21.4 |
EPS(TTM)4.75
EY3.04%
EPS(NY)5.61
Fwd EY3.59%
FCF(TTM)4.72
FCFY3.01%
OCF(TTM)5.77
OCFY3.69%
SpS30.37
BVpS39.06
TBVpS8.62
PEG (NY)1.75
PEG (5Y)5.03
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 | 9.46 |
F-Score7
WACC8.96%
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%