Balchem (BCPC) AI Stock Analysis

• Market Cap: $5.21B
• Dividend Yield: 0.54%
• Average Volume (3M): 133.55K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.70
• Revenue Growth: 3.76%
• EPS Growth: 18.06%
• Country: US
• Employees: 1,379
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.13
• Shares Outstanding: 32,617,302
• 10 Day Avg. Volume: 139,385
• 30 Day Avg. Volume: 133,554
• PEG Ratio: 3.57
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.31
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 12.49
• Enterprise Value/Ebitda: 4.79
• 1Y Price Target: $180.00
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $184.00 ▲(17.94%Upside)

Balchem Corporation's overall stock score is driven primarily by its strong financial performance and positive earnings call insights. The company's robust growth across segments and sound financial management provide a solid foundation. However, technical indicators and valuation constraints moderate the score, indicating potential overvaluation and mixed market momentum as factors to consider.

Positive Factors

Financial Performance

Balchem's revenue and earnings beat expectations, showing resilience to macro pressures.

Product Innovation

Balchem recently unveiled two new solutions, K2Vital Delta Fermented and VitaCholine Pro-Flo, which are expected to drive uptake and market demand.

Strategic Partnerships

The partnership with FC Bayern Women marks a key milestone in Balchem’s longer-term strategy to bridge the gap between B2B and B2C markets.

Negative Factors

Earnings

Balchem's 4Q24 GAAP net earnings came in somewhat below the forecasted amount, indicating a moderate earnings miss.

Market Volatility

Macro pressures and market volatility have impacted share prices and revenue and earnings multiples.

Valuation

The applicable P/E multiple has declined to 38.8x from the prior 45x, resulting in a decrease in the 12-month price target to $180 from the previous $190.

Balchem Business Overview & Revenue Model

Company Description

Balchem Corporation, listed under the ticker BCPC, is a global company engaged in the development, production, and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets. The company's operations are primarily segmented into three major sectors: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. Balchem is known for its innovative solutions that enhance the quality of life by providing value-added products and services to its customers.

How the Company Makes Money

Balchem Corporation generates revenue primarily through the sale of its diversified portfolio of products, which cater to multiple industries. In the Human Nutrition & Health segment, Balchem produces encapsulated and functional ingredients that improve the nutritional profile and performance of food and beverages. In the Animal Nutrition & Health sector, the company offers choline and microencapsulation solutions that enhance the nutrition and health of livestock and companion animals. The Specialty Products division contributes to revenue by providing performance gases and chemicals used in medical sterilization and various industrial applications. The company's earnings are further supported by strategic partnerships and collaborations with industry leaders, which broaden its market reach and enhance product development.

Balchem Financial Statement Overview

Summary

Balchem showcases strong revenue growth and profitability with a solid financial foundation. Despite a decline in free cash flow growth, cash flow metrics remain strong, reflecting efficient cash management.

Income Statement

Balchem demonstrates strong and consistent revenue growth with a TTM revenue increase of 1.14% over the previous year. Gross Profit Margin stands at 35.55%, indicating effective cost management, while the Net Profit Margin is 14.16%, showing robust bottom-line performance. The EBIT Margin is 19.95%, and the EBITDA Margin is 22.32%, reflecting solid operational efficiency.

Balance Sheet

The company maintains a low Debt-to-Equity Ratio of 0.03, indicating conservative leverage practices. Return on Equity is a healthy 11.29%, showcasing efficient use of equity capital. The Equity Ratio is 74.73%, suggesting a strong capital structure with significant equity financing, enhancing financial stability.

Cash Flow

Balchem's Free Cash Flow Growth Rate is negatively impacted compared to the previous year, but the company shows an impressive Operating Cash Flow to Net Income Ratio of 1.36, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.14, underscoring efficient cash conversion.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
964.54M	953.68M	922.44M	942.36M	799.02M	703.64M
	Gross Profit
342.86M	336.21M	302.06M	280.45M	243.17M	223.90M
	EBIT
192.38M	182.91M	159.19M	145.19M	127.50M	111.15M
	EBITDA
226.16M	230.95M	214.81M	197.57M	175.70M	162.13M
	Net Income Common Stockholders
136.54M	128.47M	108.54M	105.37M	96.10M	84.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.90M	49.52M	64.45M	66.56M	103.24M	84.57M
	Total Assets
1.62B	1.58B	1.60B	1.62B	1.20B	1.17B
	Total Debt
208.07M	208.04M	330.33M	440.57M	108.57M	163.57M
	Net Debt
158.16M	158.53M	265.89M	374.01M	5.33M	79.00M
	Total Liabilities
408.85M	425.46M	543.23M	686.23M	322.31M	337.61M
	Stockholders Equity
1.21B	1.15B	1.05B	938.28M	877.01M	828.23M
Cash Flow		Free Cash Flow
150.76M	146.34M	145.87M	88.25M	123.06M	116.67M
	Operating Cash Flow
185.07M	182.00M	183.76M	138.54M	160.51M	150.49M
	Investing Cash Flow
-58.91M	-59.74M	-34.81M	-416.01M	-35.30M	-34.59M
	Financing Cash Flow
-135.76M	-133.81M	-153.32M	246.68M	-102.18M	-101.16M

Balchem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 156.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCPC, the sentiment is Negative. The current price of 156.01 is below the 20-day moving average (MA) of 164.66, below the 50-day MA of 162.90, and below the 200-day MA of 167.12, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of 7.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCPC.

Balchem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEU	78 Outperform	$6.12B	12.91	35.85%	1.70%	3.65%	20.92%
AXTA	77 Outperform	$6.43B	14.40	23.59%	―	0.96%	82.78%
BCPC	75 Outperform	$5.21B	38.26	11.94%	0.54%	3.76%	18.06%
ESI	75 Outperform	$5.18B	18.12	11.75%	1.50%	6.08%	117.61%
SXT	73 Outperform	$4.09B	31.90	11.87%	1.70%	6.30%	41.01%
CBT	71 Outperform	$3.93B	9.45	30.57%	2.46%	-0.05%	-2.76%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%

Balchem Corporate Events

Balchem Elects Directors and Ratifies Auditor at Meeting

On June 18, 2025, Balchem Corporation held its Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and financial oversight. Shareholders elected three Class 1 directors to the Board, ratified the appointment of RSM US LLP as the independent auditor for 2025, and approved the compensation for the company’s executive officers, reflecting continued confidence in the company’s strategic direction.

The most recent analyst rating on (BCPC) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Balchem stock, see the BCPC Stock Forecast page.