Balchem (BCPC) AI Stock Analysis

• Market Cap: $5.08B
• Dividend Yield: 0.55%
• Average Volume (3M): 179.20K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.65
• Revenue Growth: 5.74%
• EPS Growth: 21.54%
• Country: US
• Employees: 1,379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.17
• Shares Outstanding: 32,455,193
• 10 Day Avg. Volume: 232,286
• 30 Day Avg. Volume: 179,201
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.42
• Enterprise Value/Gross Profit: 15.14
• Enterprise Value/Ebitda: 25.60
• 1Y Price Target: $189.00
• Price Target Upside: 18.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $182.00 ▲(14.14% Upside)

Balchem's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company has demonstrated robust growth and strategic expansion initiatives, which are expected to support future performance. However, the high valuation and neutral technical indicators slightly temper the overall score.

Positive Factors

Manufacturing Expansion

Balchem announced its intent to build a new state-of-the-art food ingredient and nutraceutical micro-encapsulation manufacturing facility, which will more than double its capacity.

Product Innovation

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

Negative Factors

Earnings Miss

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.

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 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 solid financial performance with strong revenue growth and profitability. The company maintains a low leverage ratio and high equity ratio, providing financial stability and flexibility. Despite a decline in free cash flow growth, cash flow metrics remain robust, 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	985.93M	953.68M	922.44M	942.36M	799.02M	703.64M
Gross Profit	352.98M	336.21M	302.06M	280.45M	243.17M	223.90M
EBITDA	208.77M	230.95M	214.81M	197.57M	175.70M	162.13M
Net Income	142.75M	128.47M	108.54M	105.37M	96.10M	84.62M
Balance Sheet
Total Assets	1.68B	1.58B	1.60B	1.62B	1.20B	1.17B
Cash, Cash Equivalents and Short-Term Investments	65.43M	49.52M	64.45M	66.56M	103.24M	84.57M
Total Debt	34.42M	208.04M	330.33M	440.57M	108.57M	163.57M
Total Liabilities	410.33M	425.46M	543.23M	686.23M	322.31M	337.61M
Stockholders Equity	1.27B	1.15B	1.05B	938.28M	877.01M	828.23M
Cash Flow
Free Cash Flow	159.90M	146.34M	145.87M	88.25M	123.06M	116.67M
Operating Cash Flow	187.33M	182.00M	183.76M	138.54M	160.51M	150.49M
Investing Cash Flow	-58.67M	-59.74M	-34.81M	-416.01M	-35.30M	-34.59M
Financing Cash Flow	-130.33M	-133.81M	-153.32M	246.68M	-102.18M	-101.16M

Balchem Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 159.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCPC, the sentiment is Neutral. The current price of 159.45 is above the 20-day moving average (MA) of 154.49, below the 50-day MA of 159.46, and below the 200-day MA of 164.76, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BCPC.

Balchem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	78 Outperform	$5.08B	35.84	11.99%	0.55%	5.74%	21.54%
NEU	77 Outperform	$6.66B	14.05	33.61%	1.45%	2.27%	17.81%
CBT	73 Outperform	$4.30B	10.47	29.03%	2.24%	-3.61%	-9.70%
AXTA	73 Outperform	$6.21B	13.99	22.09%	―	-1.01%	50.58%
ESI	72 Outperform	$5.69B	23.80	9.62%	1.35%	5.41%	23.44%
SXT	69 Neutral	$4.85B	36.01	12.18%	1.42%	4.95%	53.63%
Sector *	58 Neutral	HK$16.52B	4.20	-4.93%	4.57%	-5.74%	-81.55%

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.