BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - Nasdaq - US0576652004 - Common Stock - Currency: USD
BCPC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 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 quite expensive at the moment. It does show a decent growth rate. With these ratings, BCPC could be worth investigating further 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 8.44%, BCPC belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
BCPC has a Return On Equity of 11.30%. This is in the better half of the industry: BCPC outperforms 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
With an excellent Profit Margin value of 14.16%, BCPC belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BCPC has grown nicely.
The Operating Margin of BCPC (20.05%) is better than 87.06% of its industry peers.
BCPC's Operating Margin has improved in the last couple of years.
BCPC has a Gross Margin of 35.55%. This is in the better half of the industry: BCPC outperforms 71.76% of its industry peers.
In the last couple of years the Gross Margin of BCPC has remained more or less at the same level.
| 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
BCPC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BCPC has more shares outstanding than it did 1 year ago.
BCPC has more shares outstanding than it did 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 9.62. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
BCPC has a better Altman-Z score (9.62) than 100.00% of its industry peers.
The Debt to FCF ratio of BCPC is 1.27, which is an excellent value as it means it would take BCPC, only 1.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.27, BCPC belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that BCPC is not too dependend on debt financing.
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 | 9.62 |
ROIC/WACC1.14
WACC8.98%
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 better Current ratio (2.44) than 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.
BCPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.55% yearly.
Looking at the last year, BCPC shows a small growth in Revenue. The Revenue has grown by 3.76% in the last year.
Measured over the past years, BCPC shows a quite strong growth in Revenue. The Revenue has been growing by 8.18% on average per year.
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.
The Revenue is expected to grow by 6.73% on average over the next years.
EPS Next Y18.18%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y6.73%
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
With a Price/Earnings ratio of 34.80, BCPC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BCPC is valued a bit more expensive than 62.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCPC to the average of the S&P500 Index (27.52), we can say BCPC is valued slightly more expensively.
A Price/Forward Earnings ratio of 28.48 indicates a quite expensive valuation of BCPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCPC indicates a slightly more expensive valuation: BCPC is more expensive than 62.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, BCPC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 28.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCPC is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCPC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.41 | ||
| EV/EBITDA | 22.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BCPC 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)1.91
PEG (5Y)5.32
EPS Next 2Y12.92%
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.
Compared to an average industry Dividend Yield of 3.53, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.54, BCPC pays less dividend than the S&P500 average, which is at 2.35.
| 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 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 20.71% 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.
DP20.71%
EPS Next 2Y12.92%
EPS Next 3YN/A
159.05
+0.61 (+0.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change6.44%
Market Cap5.19B
Analysts82.5
Price Target200.6 (26.12%)
Short Float %1.44%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 28.48 | ||
| P/S | 5.38 | ||
| P/FCF | 34.41 | ||
| P/OCF | 28.03 | ||
| P/B | 4.29 | ||
| P/tB | 20.78 | ||
| EV/EBITDA | 22.25 |
EPS(TTM)4.57
EY2.87%
EPS(NY)5.58
Fwd EY3.51%
FCF(TTM)4.62
FCFY2.91%
OCF(TTM)5.67
OCFY3.57%
SpS29.57
BVpS37.05
TBVpS7.65
PEG (NY)1.91
PEG (5Y)5.32
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 | 9.62 |
F-Score7
WACC8.98%
ROIC/WACC1.14
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 Year6.61%
Revenue Next 2Y6.73%
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%