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. 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.
Each year in the past 5 years BCPC has been profitable.
Each year in the past 5 years BCPC had a positive operating cash flow.
1.2 Ratios
BCPC has a better Return On Assets (8.16%) than 88.24% of its industry peers.
BCPC has a Return On Equity of 11.17%. This is in the better half of the industry: BCPC outperforms 78.82% of its industry peers.
BCPC has a Return On Invested Capital of 10.14%. This is amongst the best in the industry. BCPC outperforms 84.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCPC is in line with the industry average of 7.13%.
The 3 year average ROIC (8.80%) for BCPC is below the current ROIC(10.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 11.17% | ||
| ROIC | 10.14% |
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 13.47%, BCPC belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
BCPC's Profit Margin has improved in the last couple of years.
BCPC's Operating Margin of 19.30% is amongst the best of the industry. BCPC outperforms 90.59% of its industry peers.
In the last couple of years the Operating Margin of BCPC has grown nicely.
BCPC has a Gross Margin of 35.25%. This is in the better half of the industry: BCPC outperforms 71.76% of its industry peers.
BCPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.3% | ||
| PM (TTM) | 13.47% | ||
| GM | 35.25% |
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.
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
An Altman-Z score of 9.04 indicates that BCPC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.04, BCPC belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
BCPC has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.31, BCPC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
BCPC has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.17, BCPC belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 9.04 |
ROIC/WACC1.16
WACC8.77%
2.3 Liquidity
BCPC has a Current Ratio of 1.99. This is a normal value and indicates that BCPC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.99, BCPC perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that BCPC should not have too much problems paying its short term obligations.
The Quick ratio of BCPC (1.16) is comparable to the rest of the industry.
The current and quick ratio evaluation for BCPC is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.16 |
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.
BCPC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.39%.
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)3.39%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
3.2 Future
BCPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.14% yearly.
BCPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y17.6%
EPS Next 2Y12.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.51%
Revenue Next 2Y7.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.62 indicates a quite expensive valuation of BCPC.
BCPC's Price/Earnings ratio is a bit more expensive when compared to the industry. BCPC is more expensive than 62.35% of the companies in the same industry.
BCPC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.89, which means the current valuation is very expensive for BCPC.
61.18% of the companies in the same industry are cheaper than BCPC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.32. BCPC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.62 | ||
| Fwd PE | 27.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCPC is valued a bit more expensive than 74.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 22.16 |
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.
BCPC's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)5.14
EPS Next 2Y12.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, BCPC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.80, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.56, BCPC pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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 Years14
Div Non Decr Years25
5.3 Sustainability
19.91% 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.
DP19.91%
EPS Next 2Y12.14%
EPS Next 3YN/A
153.64
-0.56 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.66%
Inst Owner Change-43.52%
Ins Owners0.47%
Ins Owner Change6.44%
Market Cap5.00B
Analysts82.5
Price Target203.32 (32.34%)
Short Float %1.45%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend0.79
Dividend Growth(5Y)11.02%
DP19.91%
Div Incr Years14
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.03%
Min EPS beat(2)-0.19%
Max EPS beat(2)0.26%
EPS beat(4)3
Avg EPS beat(4)1.59%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.25%
EPS beat(8)7
Avg EPS beat(8)8.37%
EPS beat(12)11
Avg EPS beat(12)11.15%
EPS beat(16)14
Avg EPS beat(16)8.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.77%
Max Revenue beat(2)-1.94%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)1.08%
Revenue beat(8)1
Avg Revenue beat(8)-3.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)0%
PT rev (3m)4.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.62 | ||
| Fwd PE | 27.89 | ||
| P/S | 5.24 | ||
| P/FCF | 34.15 | ||
| P/OCF | 27.46 | ||
| P/B | 4.35 | ||
| P/tB | 24.4 | ||
| EV/EBITDA | 22.16 |
EPS(TTM)4.57
EY2.97%
EPS(NY)5.51
Fwd EY3.59%
FCF(TTM)4.5
FCFY2.93%
OCF(TTM)5.59
OCFY3.64%
SpS29.32
BVpS35.35
TBVpS6.3
PEG (NY)1.91
PEG (5Y)5.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 11.17% | ||
| ROCE | 12.98% | ||
| ROIC | 10.14% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 33.98% | ||
| OM | 19.3% | ||
| PM (TTM) | 13.47% | ||
| GM | 35.25% | ||
| FCFM | 15.34% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 74.34% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 10.4 | ||
| Cash Conversion | 78.45% | ||
| Profit Quality | 113.9% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 9.04 |
F-Score7
WACC8.77%
ROIC/WACC1.16
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 Y17.6%
EPS Next 2Y12.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.39%
Revenue growth 3Y6.08%
Revenue growth 5Y8.18%
Sales Q2Q%4.53%
Revenue Next Year6.51%
Revenue Next 2Y7.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.54%
EBIT growth 3Y12.89%
EBIT growth 5Y11.9%
EBIT Next Year34.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.32%
FCF growth 3Y5.93%
FCF growth 5Y8.77%
OCF growth 1Y-0.96%
OCF growth 3Y4.28%
OCF growth 5Y7.89%