Balchem Corp. (BCPC)
NASDAQ:BCPC
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Balchem
(NASDAQ:BCPC)
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Rating:81Outperform
Price Target:
$202.00
▲(15.47% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Balchem (BCPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.60B
Dividend Yield0.61%
Average Volume (3M)189.48K
Price to Earnings (P/E)32.3
Beta (1Y)0.50
Revenue Growth7.55%
EPS Growth22.43%
CountryUS
Employees1,379
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.21
Shares Outstanding32,025,390
10 Day Avg. Volume178,053
30 Day Avg. Volume189,483
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)3.98
Price to Sales (P/S)4.82
P/FCF Ratio28.89
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue5.58
Enterprise Value/Gross Profit15.60
Enterprise Value/Ebitda21.80
Forecast
1Y Price Target
$190.00Price Target Upside8.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.13
Revenue Forecast (FY)$1.10B
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 St...
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 nutrie...
Balchem Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial tone: Balchem reported multiple record metrics (sales, earnings from operations, adjusted EBITDA, free cash flow), delivered consistent quarter-over-quarter adjusted EBITDA growth, advanced strategic initiatives (international expansion, clinical pipeline, marketing partnerships, microencapsulation facility), and strengthened the balance sheet (lower net debt, repurchases, dividend increase). Challenges noted—higher manufacturing input costs compressing gross margin by ~40 bps, rising operating expenses, regulatory/tariff uncertainty, and remaining work on water reduction—are meaningful but framed as manageable by management through pricing, alternate supply chains, and strategic positioning. Overall, highlights substantially outweigh the lowlights.Positive Updates
Record Full-Year Financials
Full-year 2025 record sales of $1,037,000,000 (+8.8% YoY); record earnings from operations $209,000,000 (+14.4%); record adjusted EBITDA $275,000,000 (+9.8%); record free cash flow $174,000,000 while investing $43,000,000 in capital projects.
Negative Updates
Gross Margin Pressure from Input Costs
Q4 gross margin percentage was 35.6%, down ~40 basis points YoY, primarily due to higher manufacturing input costs despite gross margin dollars rising to $94,000,000 (+8.8%).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Financials
Full-year 2025 record sales of $1,037,000,000 (+8.8% YoY); record earnings from operations $209,000,000 (+14.4%); record adjusted EBITDA $275,000,000 (+9.8%); record free cash flow $174,000,000 while investing $43,000,000 in capital projects.
Read all positive updates
Company Guidance
Balchem gave qualitative 2026 guidance that it expects to deliver continued top‑ and bottom‑line growth for the full year while advancing strategic initiatives, and advised modeling an effective tax rate of ~23%; management reiterated capital priorities of investing in organic growth and M&A, paying down debt, maintaining/dividend growth and opportunistic buybacks (2025 dividend rose 10% to $0.96 from $0.87; ~685,000 shares repurchased at an avg ~$158), noting net debt of $89M, cash of $75M and net leverage of 0.3x. Key 2025 and Q4 metrics they cited to frame outlook include FY sales $1,037.0M (+8.8%), FY earnings from operations $209.0M (+14.4%), FY adjusted EBITDA $275.0M (+9.8%), record free cash flow $174.0M with $43.0M capex, Q4 sales $264.0M (+9.8%), Q4 adjusted EBITDA $68.0M (+8.1%) and a 25.8% adjusted EBITDA margin, Q4 GAAP diluted EPS $1.21 (+17.5%) and Q4 adjusted EPS $1.31 (+15.9%); they also noted a >20‑study clinical pipeline and said tariff exposure was manageable (theoretical ~$20M impact, largely mitigated to ~ $10M).Balchem Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very 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 | 173.07M | 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
Positive
174.93
Price Trends
172.68
Positive
164.81
Positive
159.57
Positive
Market Momentum
0.23
Negative
60.23
Neutral
83.70
Negative
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 174.93 is above the 20-day moving average (MA) of 168.28, above the 50-day MA of 172.68, and above the 200-day MA of 159.57, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCPC.
Balchem Risk Analysis
Balchem disclosed 26 risk factors in its most recent earnings report. Balchem reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Balchem Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.60B | 32.29 | 12.31% | 0.61% | 7.55% | 22.43% | |
70 Outperform | $3.90B | 11.96 | 20.42% | 2.72% | -7.04% | -11.28% | |
70 Outperform | $9.05B | 247.95 | 7.29% | 1.25% | 3.87% | -10.30% | |
65 Neutral | $3.96B | 29.50 | 11.63% | 1.70% | 4.25% | 56.51% | |
62 Neutral | $8.00B | 76.21 | 1.59% | ― | -6.73% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.50B | 34.90 | 3.48% | 3.48% | 1.03% | -24.57% |
* Basic Materials Sector Average
BCPC
Balchem
174.93
11.83
7.26%
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Balchem Corporate Events
Executive/Board Changes
Balchem Announces Planned Chief Accounting Officer Succession
Neutral
Feb 19, 2026
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...
Stock BuybackDividends
Balchem Announces Dividend Increase and Stock Buyback
Positive
Dec 10, 2025
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 progr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.