Balchem Corp (BCPC) stock analysis

P/E below its 5-year median

Balchem's P/E of 32.6 is below its own 5-year median of 40.9.

P/E above the industry

Balchem's P/E of 32.6 is above the Chemicals and Allied Products median of 25.2.

EV/EBITDA below its 5-year median

Balchem's EV/EBITDA of 19.5 is below its 5-year median of 21.7.

P/B above the industry

Balchem's price-to-book of 4.15 is above the Chemicals and Allied Products median of 2.80.

Trading above fair value

The share price of $173.14 is above our fair value estimate of $151.06.

Margin of safety under 20%

The price is 14.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 13.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 14.5% over the last twelve months, against a 5-year average of 12.8% a year.

Growing faster than the industry

Revenue grew 9.4% over the last twelve months; the Chemicals and Allied Products median is 0.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 36.5% over the last twelve months, against 35.8% a year earlier.

Return on equity under 15%

Return on equity was 13.0% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Balchem's return on equity of 13.0% is above the Chemicals and Allied Products median of -3.8%.

Earnings grew over 5 years

Net income grew 12.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.4% over the last twelve months, against a 5-year average of 12.7%.

Net margin above the industry

Balchem's net margin of 15.4% is above the Chemicals and Allied Products median of -2.8%.

No debt

Balchem has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.47 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 11.06; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Balchem paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Balchem yields 0.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 18.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.