BALCHEM CORP (BCPC)
US0576652004 - Common Stock
We assign a fundamental rating of 5 out of 10 to BCPC. BCPC was compared to 84 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making BCPC a very profitable company, without any liquidiy or solvency issues. BCPC does not seem to be growing, but still is valued expensively.
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.
In the past 5 years BCPC always reported a positive cash flow from operatings.
1.2 Ratios
BCPC's Return On Assets of 6.80% is fine compared to the rest of the industry. BCPC outperforms 78.57% of its industry peers.
BCPC has a Return On Equity of 10.30%. This is in the better half of the industry: BCPC outperforms 67.86% of its industry peers.
The Return On Invested Capital of BCPC (8.46%) is better than 73.81% 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 7.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.3% | ||
| ROIC | 8.46% |
ROA(3y)7.1%
ROA(5y)7.09%
ROE(3y)10.83%
ROE(5y)10.68%
ROIC(3y)8.66%
ROIC(5y)8.42%
1.3 Margins
Looking at the Profit Margin, with a value of 11.77%, BCPC belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
BCPC's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 16.83%, BCPC belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
In the last couple of years the Operating Margin of BCPC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 32.74%, BCPC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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 | 16.83% | ||
| PM (TTM) | 11.77% | ||
| GM | 32.74% |
OM growth 3Y1.9%
OM growth 5Y0.1%
PM growth 3Y-0.72%
PM growth 5Y-0.74%
GM growth 3Y0.96%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
BCPC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BCPC has about the same amout of shares outstanding than it did 1 year ago.
BCPC has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for BCPC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.02 indicates that BCPC is not in any danger for bankruptcy at the moment.
BCPC's Altman-Z score of 7.02 is amongst the best of the industry. BCPC outperforms 97.62% of its industry peers.
The Debt to FCF ratio of BCPC is 2.14, which is a good value as it means it would take BCPC, 2.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.14, BCPC belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that BCPC is not too dependend on debt financing.
The Debt to Equity ratio of BCPC (0.30) is better than 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 7.02 |
ROIC/WACC0.94
WACC8.99%
2.3 Liquidity
A Current Ratio of 2.12 indicates that BCPC has no problem at all paying its short term obligations.
BCPC has a Current ratio (2.12) which is comparable to the rest of the industry.
BCPC has a Quick Ratio of 1.38. 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 Quick ratio value of 1.38, BCPC perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
BCPC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.24%.
BCPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.73% yearly.
BCPC shows a decrease in Revenue. In the last year, the revenue decreased by -2.12%.
BCPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.46% yearly.
EPS 1Y (TTM)-1.24%
EPS 3Y6.32%
EPS 5Y5.73%
EPS growth Q2Q1.06%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y9.45%
Revenue growth 5Y7.46%
Revenue growth Q2Q-1.63%
3.2 Future
The Earnings Per Share is expected to grow by 10.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y9.16%
EPS Next 2Y10.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.95%
Revenue Next 2Y4.7%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.66 indicates a quite expensive valuation of BCPC.
Based on the Price/Earnings ratio, BCPC is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
BCPC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.06.
BCPC is valuated quite expensively with a Price/Forward Earnings ratio of 33.59.
66.67% 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 20.72. BCPC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.66 | ||
| Fwd PE | 33.59 |
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 76.19% of the companies listed 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 | 32.36 | ||
| EV/EBITDA | 23.64 |
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.
The decent profitability rating of BCPC may justify a higher PE ratio.
PEG (NY)4
PEG (5Y)6.4
EPS Next 2Y10.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BCPC has a yearly dividend return of 0.57%, which is pretty low.
BCPC's Dividend Yield is slightly below the industry average, which is at 3.14.
With a Dividend Yield of 0.57, BCPC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of BCPC grows each year by 11.23%, 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)11.23%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
21.07% of the earnings are spent on dividend by BCPC. This is a low number and sustainable payout ratio.
The dividend of BCPC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.07%
EPS Next 2Y10.72%
EPS Next 3YN/A
BALCHEM CORP
NASDAQ:BCPC (5/2/2024, 7:00:01 PM)
After market: 146.28 0 (0%)146.28
+2.46 (+1.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.66 | ||
| Fwd PE | 33.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4
PEG (5Y)6.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 10.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.83% | ||
| PM (TTM) | 11.77% | ||
| GM | 32.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.24%
EPS 3Y6.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y9.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y