Balchem (BCPC) AI Stock Analysis

• Market Cap: $5.72B
• Dividend Yield: 0.61%
• Average Volume (3M): 157.88K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.49
• Revenue Growth: 7.55%
• EPS Growth: 22.43%
• Country: US
• Employees: 1,379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.21
• Shares Outstanding: 32,025,390
• 10 Day Avg. Volume: 169,896
• 30 Day Avg. Volume: 157,876
• PEG Ratio: 1.54
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 4.82
• P/FCF Ratio: 23.09
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.72
• Enterprise Value/Gross Profit: 16.01
• Enterprise Value/Ebitda: 22.37
• 1Y Price Target: $176.00
• Price Target Upside: -2.02% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.13
• Revenue Forecast (FY): $1.10B

• Rating: 81 Outperform
• Price Target: $202.00 ▲(12.46% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

BCPC scores well primarily on strong financial performance (growth, expanding margins, strong cash generation, and very low leverage) and a positive, execution-focused earnings call with continued growth outlook. Technicals are supportive with an established uptrend, while the main offset is a relatively expensive valuation (high P/E and low yield).

Positive Factors

Strong cash generation & FCF improvement

Robust cash conversion (OCF > net income and FCF up ~34% in 2025) provides durable funding for capex, dividends, buybacks and M&A. Reliable cash flow enhances financial flexibility and resilience across cycles, supporting execution of long-term strategic initiatives despite past FCF volatility.

Very conservative balance sheet

Extremely low leverage and a strengthened equity base give Balchem persistent optionality to invest organically, pursue acquisitions, or sustain shareholder returns without stressing liquidity. Conservative balance sheet materially reduces refinancing and solvency risks over a multi‑quarter horizon.

Diversified growth platforms and R&D pipeline

Multiple revenue engines (Human Nutrition, Animal Nutrition, Specialty Products) plus 20+ clinical studies, strategic marketing partnerships and a new microencapsulation facility create differentiated products and adoption channels. This innovation-driven diversification supports sustainable market share gains and long-term organic growth.

Negative Factors

Input-cost pressure on gross margins

Rising manufacturing input costs reduced gross margin by ~40 basis points in Q4. If input inflation persists or pricing pass-through is constrained, margin expansion could stall, limiting operating profit and free cash flow growth and pressuring long-term profitability targets.

Tariff and regulatory uncertainty

Regulatory shifts around tariffs create planning and cost uncertainty; management cites a remaining potential exposure (~$10M). Evolving duties or refunds can change competitive dynamics and supply‑chain economics, complicating pricing, forecasting and margin stability over the medium term.

Dependence on clinical study outcomes

Commercial claims and some growth initiatives hinge on positive clinical results and publications. Adverse, inconclusive or delayed study outcomes would constrain marketing claims and adoption, turning expected product-driven revenue upside into a contingent, execution‑sensitive risk over multiple quarters or years.

Balchem Business Overview & Revenue Model

Company Description

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States and internationally. It operates through three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment also offers microencapsulation solutions for various applications; and human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. The Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production, and delivering nutrient supplements in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. This segment also markets and sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was incorporated in 1967 and is headquartered in New Hampton, New York.

How the Company Makes Money

Balchem generates revenue through multiple streams primarily focused on its core business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. The company sells a variety of products, including encapsulated nutrients, dairy and meat processing solutions, and other specialty chemicals. Key revenue streams come from the sale of these products to manufacturers and suppliers in the food, pharmaceutical, and agricultural industries. Significant partnerships with major companies in these sectors enhance its market reach and provide a consistent demand for its products. Additionally, Balchem invests in research and development to innovate and expand its product offerings, which helps to drive sales and maintain competitive advantage in the market.

Balchem Financial Statement Overview

Summary

Strong multi-year revenue growth with improving profitability (gross and net margin expansion) and strong cash conversion (operating cash flow consistently above net income). Balance sheet is very conservative with minimal leverage, supporting resilience; the main drawback is some historical variability in operating/FCF growth.

Income Statement

Revenue has expanded steadily from $704M (2020) to $1.04B (2025), with only a modest dip in 2023 followed by re-acceleration in 2024–2025. Profitability is strong and improving: gross margin rose to ~35.7% (2025) from ~29.8% (2022), and net margin improved to ~14.9% (2025) from ~11–12% in 2020–2022. A watch item is some variability in operating profitability metrics (and one year where operating margin is not available), but overall earnings quality and margin trajectory look favorable.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage in 2025: debt of ~$38M against equity of ~$1.26B (debt-to-equity ~0.03), a sharp improvement from the higher leverage seen in 2022 (~0.49) and 2023 (~0.31). Equity and assets have grown over time, supporting balance sheet resilience. Return on equity was consistently around ~10–11% in 2020–2024 (2025 not provided), indicating steady profitability, though not exceptionally high.

Cash Flow

Cash generation is strong and covers earnings well: operating cash flow exceeded net income each year provided, including 2025 (operating cash flow ~$217M vs. net income ~$155M). Free cash flow has generally tracked well and improved meaningfully in 2025 (up ~34% year over year), and 2025 free cash flow is shown at ~$217M. The main weakness is historical volatility in free cash flow growth (notably a decline in 2022), but the recent trend is positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	953.68M	922.44M	942.36M	799.02M
Gross Profit	370.63M	336.21M	302.06M	280.45M	243.17M
EBITDA	254.44M	230.95M	214.81M	195.87M	176.57M
Net Income	154.84M	128.47M	108.54M	105.37M	96.10M
Balance Sheet
Total Assets	1.71B	1.58B	1.60B	1.62B	1.20B
Cash, Cash Equivalents and Short-Term Investments	74.57M	49.52M	64.45M	66.56M	103.24M
Total Debt	192.01M	208.04M	330.33M	460.61M	118.04M
Total Liabilities	450.15M	425.46M	543.23M	686.23M	322.31M
Stockholders Equity	1.26B	1.15B	1.05B	938.28M	877.01M
Cash Flow
Free Cash Flow	216.56M	146.34M	145.87M	88.25M	123.06M
Operating Cash Flow	216.56M	182.00M	183.76M	138.54M	160.51M
Investing Cash Flow	-43.89M	-59.74M	-34.81M	-416.01M	-35.30M
Financing Cash Flow	-152.81M	-133.81M	-153.32M	246.68M	-102.18M

Balchem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 179.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCPC, the sentiment is Positive. The current price of 179.62 is above the 20-day moving average (MA) of 174.66, above the 50-day MA of 165.62, and above the 200-day MA of 158.49, indicating a bullish trend. The MACD of 3.49 indicates Positive momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCPC.

Balchem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	81 Outperform	$5.72B	37.60	12.86%	0.61%	7.55%	22.43%
CBT	74 Outperform	$3.96B	13.30	20.88%	2.72%	-7.04%	-11.28%
ESI	70 Outperform	$8.94B	45.95	7.55%	1.25%	3.87%	-10.30%
SSL	67 Neutral	$5.73B	41.96	1.55%	―	-6.73%	―
SXT	65 Neutral	$4.05B	30.15	12.31%	1.70%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVNT	59 Neutral	$3.88B	47.41	3.49%	3.48%	1.03%	-24.57%

Balchem Corporate Events

Balchem Announces Planned Chief Accounting Officer Succession

Balchem Corporation announced that Vice President and Chief Accounting Officer William A. Backus, whose retirement was first disclosed on March 3, 2025, will step down from his role on March 31, 2026. On February 12, 2026, the board elected Erin L. Gilson, currently Senior Director of Accounting and Financial Reporting and with the company since February 2016, to assume the position of Vice President and Chief Accounting Officer effective April 1, 2026, with no material changes to her compensation, signaling a planned and internally sourced leadership transition in the finance function.

The orderly succession from a long-serving chief accounting officer to an internal finance leader is designed to preserve continuity in Balchem’s financial reporting and control environment. This move underscores the company’s reliance on internal talent development for key finance roles and suggests limited near-term disruption for investors, auditors, and other stakeholders who depend on the company’s accounting leadership for transparent and stable financial oversight.

The most recent analyst rating on (BCPC) stock is a Hold with a $162.00 price target. To see the full list of analyst forecasts on Balchem stock, see the BCPC Stock Forecast page.

Balchem Announces Dividend Increase and Stock Buyback

On December 9, 2025, Balchem Corporation’s Board of Directors declared a dividend of $0.96 per share, marking a 10.3% increase from the previous year, payable on January 20, 2026. Additionally, the Board approved a new stock repurchase program allowing the repurchase of up to 4 million shares, replacing the previous program, with no expiration date and flexible execution, reflecting confidence in the company’s long-term strategies.

The most recent analyst rating on (BCPC) stock is a Hold with a $162.00 price target. To see the full list of analyst forecasts on Balchem stock, see the BCPC Stock Forecast page.