BALCHEM CORP (BCPC) Stock Fundamental Analysis
NASDAQ:BCPC - Nasdaq - US0576652004 - Common Stock - Currency: USD
Taking everything into account, BCPC scores 6 out of 10 in our fundamental rating. 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. While showing a medium growth rate, BCPC is valued expensive at the moment. With these ratings, BCPC could be worth investigating further 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.
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
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.
With a decent Return On Equity value of 11.30%, BCPC is doing good in the industry, outperforming 77.65% of the companies in the same industry.
The Return On Invested Capital of BCPC (10.22%) is better than 84.71% of its industry peers.
BCPC had an Average Return On Invested Capital over the past 3 years of 8.80%. This 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's Profit Margin of 14.16% is amongst the best of the industry. BCPC outperforms 95.29% of its industry peers.
In the last couple of years the Profit Margin of BCPC has grown nicely.
Looking at the Operating Margin, with a value of 20.05%, BCPC belongs to the top of the industry, outperforming 87.06% of the companies in the same industry.
In the last couple of years the Operating Margin of BCPC has grown nicely.
BCPC's Gross Margin of 35.55% is fine compared to the rest 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 | 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.
The number of shares outstanding for BCPC has been increased compared to 1 year ago.
Compared to 5 years ago, BCPC has more shares outstanding
The debt/assets ratio for BCPC has been reduced compared to a year ago.
2.2 Solvency
BCPC has an Altman-Z score of 9.88. This indicates that BCPC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.88, BCPC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.27, BCPC belongs to the best 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.
BCPC's Debt to Equity ratio of 0.16 is amongst the best of the industry. BCPC outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.88 |
ROIC/WACC1.13
WACC9.04%
2.3 Liquidity
A Current Ratio of 2.44 indicates that BCPC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.44, BCPC is doing good in the industry, outperforming 65.88% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that BCPC should not have too much problems paying its short term obligations.
The Quick ratio of BCPC (1.40) is better 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 12.66% on average per year.
BCPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.68% yearly.
EPS Next Y18.18%
EPS Next 2Y12.66%
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.
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
Based on the Price/Earnings ratio of 35.35, the valuation of BCPC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BCPC indicates a slightly more expensive valuation: BCPC is more expensive than 63.53% of the companies listed in the same industry.
BCPC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 29.06, BCPC can be considered very expensive at the moment.
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 68.24% of the companies listed 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 29.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCPC is valued a bit more expensive than the industry average as 72.94% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.95 | ||
| EV/EBITDA | 22.99 |
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.
BCPC's earnings are expected to grow with 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.94
PEG (5Y)5.4
EPS Next 2Y12.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 3.75, BCPC is paying slightly less dividend.
With a Dividend Yield of 0.53, BCPC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 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
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 2Y12.66%
EPS Next 3YN/A
161.53
-2.35 (-1.43%)
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 Cap5.27B
Analysts82.5
Price Target200.6 (24.19%)
Short Float %1.67%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)-1.34%
PT rev (3m)-1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.89%
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 | 35.35 | ||
| Fwd PE | 29.06 | ||
| P/S | 5.46 | ||
| P/FCF | 34.95 | ||
| P/OCF | 28.47 | ||
| P/B | 4.36 | ||
| P/tB | 21.11 | ||
| EV/EBITDA | 22.99 |
EPS(TTM)4.57
EY2.83%
EPS(NY)5.56
Fwd EY3.44%
FCF(TTM)4.62
FCFY2.86%
OCF(TTM)5.67
OCFY3.51%
SpS29.57
BVpS37.05
TBVpS7.65
PEG (NY)1.94
PEG (5Y)5.4
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 | 9.88 |
F-Score7
WACC9.04%
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)12.01%
EPS 3Y7.05%
EPS 5Y6.55%
EPS Q2Q%18.45%
EPS Next Y18.18%
EPS Next 2Y12.66%
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%