Balchem Corporation
Balchem Corporation Fundamental Analysis
Balchem Corporation (BCPC) shows moderate financial fundamentals with a PE ratio of 36.44, profit margin of 14.93%, and ROE of 12.31%. The company generates $1.0B in annual revenue with moderate year-over-year growth of 3.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BCPC's fundamental strength across five key dimensions:
Efficiency Score
WeakBCPC struggles to generate sufficient returns from assets.
Valuation Score
WeakBCPC trades at a premium to fair value.
Growth Score
ModerateBCPC shows steady but slowing expansion.
Financial Health Score
ExcellentBCPC maintains a strong and stable balance sheet.
Profitability Score
WeakBCPC struggles to sustain strong margins.
Key Financial Metrics
Is BCPC Expensive or Cheap?
P/E Ratio
BCPC trades at 36.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BCPC's PEG of 8.82 indicates potential overvaluation.
Price to Book
The market values Balchem Corporation at 4.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.59 times EBITDA. This signals the market has high growth expectations.
How Well Does BCPC Make Money?
Net Profit Margin
For every $100 in sales, Balchem Corporation keeps $14.93 as profit after all expenses.
Operating Margin
Core operations generate 21.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.31 in profit for every $100 of shareholder equity.
ROA
Balchem Corporation generates $9.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Balchem Corporation produces operating cash flow of $217.00M, showing steady but balanced cash generation.
Free Cash Flow
Balchem Corporation generates strong free cash flow of $217.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.70 in free cash annually.
FCF Yield
BCPC converts 3.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How BCPC Stacks Against Its Sector Peers
| Metric | BCPC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.44 | 27.01 | Worse (Expensive) |
| ROE | 12.31% | 949.00% | Weak |
| Net Margin | 14.93% | -16219.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.07 | 4.42 | Strong Liquidity |
| ROA | 9.18% | -6413.00% (disorted) | Weak |
BCPC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Balchem Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.26%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
60.28%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
45.34%
Industry Style: Cyclical, Commodity, Value
High Growth