Balchem (BCPC) AI Stock Analysis

• Market Cap: $5.27B
• Dividend Yield: 0.53%
• Average Volume (3M): 183.80K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.69
• Revenue Growth: 5.74%
• EPS Growth: 21.54%
• Country: US
• Employees: 1,379
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.17
• Shares Outstanding: 32,455,193
• 10 Day Avg. Volume: 145,741
• 30 Day Avg. Volume: 183,797
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 5.42
• Enterprise Value/Gross Profit: 15.14
• Enterprise Value/Ebitda: 23.10
• 1Y Price Target: $189.00
• Price Target Upside: 15.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $187.00 ▲(14.58% Upside)

Balchem's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's strategic expansions and scientific advancements further bolster its growth prospects. However, the high P/E ratio and potential overvaluation, along with technical indicators suggesting limited short-term upside, 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 Innovations

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 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.

Valuation Concerns

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

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 the sale of its diverse range of products across its three business segments. Key revenue streams include the sale of nutritional ingredients and specialty chemicals used in food production, animal feed formulations, and pharmaceutical applications. The company benefits from a strong market position due to its proprietary encapsulation technology, which allows for the delivery of nutrients in a controlled manner, thus enhancing their effectiveness. Additionally, Balchem has established significant partnerships with key players in the food and animal nutrition sectors, which further drives sales and market penetration. Factors contributing to its earnings include an increasing demand for health and wellness products, a growing global population, and strong relationships with customers seeking innovative solutions to improve product quality and consumer health.

Balchem Financial Statement Overview

Summary

Balchem exhibits strong financial health with consistent revenue and profit growth, a solid balance sheet, and robust cash flow generation. The company has effectively reduced debt, improved profitability, and maintained a strong equity base, positioning it well for future growth. Potential risks include maintaining sufficient cash reserves while managing liabilities.

Income Statement

Balchem's income statement shows robust performance with consistent revenue growth and solid margins. The TTM revenue of $985.93M represents a 3.38% growth from the 2024 annual revenue. Gross Profit Margin is strong at 35.8%, while Net Profit Margin has improved to 14.48% in TTM, up from 13.47% in 2024. The EBIT and EBITDA margins are healthy at 20.07% and 21.17% respectively, indicating efficient operations.

Balance Sheet

The balance sheet of Balchem reflects a strong equity position with an Equity Ratio of 75.54%. The company has significantly reduced its Total Debt to $34.42M in TTM from $208.04M in 2024, improving the Debt-to-Equity Ratio to a low 0.03. Return on Equity is favorable at 11.26%, suggesting effective utilization of equity capital. The stability is offset slightly by a lower cash position compared to liabilities.

Cash Flow

Cash flow analysis shows positive trends with Free Cash Flow in TTM at $159.9M, marking a 9.25% growth from 2024. Operating Cash Flow to Net Income Ratio is strong at 1.31, indicating good cash generation relative to profits. Free Cash Flow to Net Income Ratio is also healthy at 1.12, demonstrating ample free cash flow to support continuing operations and investments.

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	231.37M	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	460.61M	118.04M	171.99M
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: Positive
• Last Price: 163.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 163.21 is above the 20-day moving average (MA) of 159.90, above the 50-day MA of 158.39, and below the 200-day MA of 164.19, indicating a neutral trend. The MACD of 1.60 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 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	80 Outperform	$5.27B	37.21	11.99%	0.53%	5.74%	21.54%
NEU	76 Outperform	$7.64B	16.12	33.61%	1.27%	2.27%	17.81%
SXT	75 Outperform	$4.79B	35.54	12.18%	1.43%	4.95%	53.63%
AXTA	74 Outperform	$6.81B	15.46	22.09%	―	-1.01%	50.58%
ESI	72 Outperform	$6.20B	25.92	9.62%	1.24%	5.41%	23.44%
CBT	71 Outperform	$4.34B	10.66	29.03%	2.12%	-3.61%	-9.70%
Sector *	61 Neutral	$10.31B	6.29	0.76%	2.95%	3.36%	-36.41%

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.