Balchem (BCPC) AI Stock Analysis

• Market Cap: $5.06B
• Dividend Yield: 0.56%
• Average Volume (3M): 170.32K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.57
• Revenue Growth: 7.55%
• EPS Growth: 22.43%
• Country: US
• Employees: 1,379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.24
• Shares Outstanding: 32,386,260
• 10 Day Avg. Volume: 150,101
• 30 Day Avg. Volume: 170,321
• PEG Ratio: 2.35
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 5.53
• P/FCF Ratio: 36.01
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 13.77
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $190.00
• Price Target Upside: 21.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.75
• Revenue Forecast (FY): $1.02B

• Rating: 80 Outperform
• Price Target: $180.00 ▲(15.23% Upside)

Balchem Corporation's overall stock score of 80 reflects its strong financial performance and positive earnings call, which highlight record-breaking growth and strategic initiatives. The technical analysis suggests potential short-term volatility, and the valuation indicates the stock may be overvalued. However, the company's robust financial health and positive outlook support a favorable stock assessment.

Positive Factors

Revenue Growth

Balchem's strong revenue growth across all segments indicates robust market demand and effective strategic initiatives, supporting long-term expansion.

Cash Generation Ability

Strong cash generation supports Balchem's ability to invest in growth opportunities, manage debt, and provide shareholder returns, ensuring financial stability.

Margin Sustainability

Improving margins reflect effective cost management and pricing power, enhancing Balchem's profitability and competitive positioning in the market.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure profit margins and reduce financial flexibility, potentially impacting Balchem's ability to sustain growth.

International Trade Challenges

Trade challenges can disrupt supply chains and increase costs, posing risks to Balchem's global operations and market competitiveness.

Revenue Growth Dependency

Balchem's future performance heavily relies on consistent revenue growth, which may be challenged by market saturation or increased competition.

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

Balchem demonstrates solid financial health with strong profitability, efficient operations, and a stable balance sheet. The company has effectively managed its leverage and continues to generate strong cash flows, positioning it well for future growth. However, maintaining revenue growth momentum will be crucial to sustaining this positive trajectory.

Income Statement

Balchem's income statement shows strong profitability with a consistent increase in gross profit margin from 29.76% in 2022 to 35.82% in TTM (Trailing-Twelve-Months). The net profit margin has also improved to 14.72% in TTM, indicating effective cost management. Revenue growth is steady at 2.80% in TTM, following a slight dip in 2023. EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.15 in TTM, down from 0.47 in 2022, indicating reduced leverage. Return on equity has improved to 12.12% in TTM, showcasing effective use of equity capital. The equity ratio remains stable, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 5.56% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.60 in TTM suggests efficient conversion of income to cash. The free cash flow to net income ratio remains strong at 0.80, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	953.68M	922.44M	942.36M	799.02M	703.64M
Gross Profit	363.07M	336.21M	302.06M	280.45M	243.17M	223.90M
EBITDA	260.07M	230.95M	214.81M	195.87M	176.57M	162.14M
Net Income	149.20M	128.47M	108.54M	105.37M	96.10M	84.62M
Balance Sheet
Total Assets	1.66B	1.58B	1.60B	1.62B	1.20B	1.17B
Cash, Cash Equivalents and Short-Term Investments	65.09M	49.52M	64.45M	66.56M	103.24M	84.57M
Total Debt	155.80M	208.04M	330.33M	460.61M	118.04M	171.99M
Total Liabilities	363.17M	425.46M	543.23M	686.23M	322.31M	337.61M
Stockholders Equity	1.30B	1.15B	1.05B	938.28M	877.01M	828.23M
Cash Flow
Free Cash Flow	161.60M	146.34M	145.87M	88.25M	123.06M	116.67M
Operating Cash Flow	201.60M	182.00M	183.76M	138.54M	160.51M	150.49M
Investing Cash Flow	-64.43M	-59.74M	-34.81M	-416.01M	-35.30M	-34.59M
Financing Cash Flow	-146.78M	-133.81M	-153.32M	246.68M	-102.18M	-101.16M

Balchem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.21
• 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 156.21 is above the 20-day moving average (MA) of 154.54, above the 50-day MA of 151.49, and below the 200-day MA of 159.30, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.51 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	$5.06B	34.19	12.06%	0.56%	7.55%	22.43%
SSL	69 Neutral	$4.15B	11.27	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.37B	10.61	21.98%	2.84%	-7.04%	-11.28%
SXT	66 Neutral	$4.14B	29.82	12.31%	1.68%	4.25%	56.51%
ESI	65 Neutral	$6.27B	26.27	9.40%	1.23%	3.87%	-10.30%
AVNT	63 Neutral	$2.80B	24.81	4.79%	3.53%	1.03%	-24.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Balchem Corporate Events

Balchem’s Cognitive Supplement Study: A Potential Game-Changer for Cognitive Health?

Balchem Corporation, in collaboration with Pharmavite LLC and Biofortis, Inc., is conducting a clinical trial titled ‘A Randomized, Parallel, Double-Blind, Placebo-Controlled Study to Assess Cognitive Effects of Cognitive Nutritional Supplementation in the General Population.’ The study aims to evaluate the cognitive effects of a nutritional supplement on attention and focus in adults in the United States over a 12-week period. This research is significant as it could provide insights into non-pharmaceutical interventions for cognitive enhancement.

Balchem Corporation Reports Record Third-Quarter Growth

Balchem Corporation is a diversified company operating in the human nutrition and health, animal nutrition and health, and specialty products sectors, known for its innovative specialty nutrients and delivery systems. In its third-quarter 2025 earnings report, Balchem Corporation announced record financial results, including net sales of $267.6 million and net earnings of $40.3 million, reflecting significant growth across all business segments. The company achieved an 11.5% increase in net sales and a 19.1% rise in net earnings compared to the previous year, driven by strong performances in its human nutrition and health, animal nutrition and health, and specialty products segments. Additionally, Balchem reported a record adjusted EBITDA of $71.4 million and a free cash flow of $50.7 million, underscoring its robust financial health. Looking ahead, Balchem remains committed to advancing its strategic growth initiatives, including the expansion of its microencapsulation manufacturing capacity, positioning the company for continued success in the evolving food and nutrition markets.

Balchem Corporation Reports Record Earnings and Growth

Balchem Corporation’s recent earnings call painted a picture of robust financial health and strategic growth. The company reported record-breaking revenue and growth across all segments, demonstrating resilience despite challenges such as increased operating expenses and complex international trade issues. Particularly noteworthy was the strong performance in the Human Nutrition and Health and Specialty Products segments, which contributed significantly to the company’s overall success.