Balchem (BCPC) AI Stock Analysis

• Market Cap: $4.93B
• Dividend Yield: 0.57%
• Average Volume (3M): 175.46K
• Price to Earnings (P/E): 33.3
• Beta (1Y): 0.59
• 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: 176,624
• 30 Day Avg. Volume: 175,460
• 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: 1.01
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 13.77
• Enterprise Value/Ebitda: 19.39
• 1Y Price Target: $190.00
• Price Target Upside: 24.54% 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 ▲(17.99% 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 (BCPC) is a global leader in specialty chemicals and nutritional products, primarily serving the food, feed, and pharmaceutical industries. The company operates through three main segments: Nutritional Products, Specialty Products, and Animal Nutrition & Health. Balchem's core offerings include encapsulated nutrients, dairy and meat flavors, and other innovative solutions designed to enhance product performance and safety.

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 demonstrates 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.

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	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	257.72M	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: Neutral
• Last Price: 152.56
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 152.56 is above the 20-day moving average (MA) of 151.65, above the 50-day MA of 152.27, and below the 200-day MA of 159.68, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.24 is Neutral, 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	80 Outperform	$4.93B	33.32	12.06%	0.57%	7.55%	22.43%
ESI	74 Outperform	$6.54B	27.37	9.40%	1.16%	3.87%	-10.30%
SSL	69 Neutral	$4.05B	11.67	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.16B	9.86	22.05%	2.86%	-7.04%	-11.00%
SXT	66 Neutral	$3.91B	28.13	12.31%	1.82%	4.25%	56.51%
AVNT	63 Neutral	$2.86B	25.38	4.79%	3.64%	1.03%	-24.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Balchem Corporate Events

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.

Balchem Shines in Record-Breaking Earnings Call

Balchem’s recent earnings call painted a picture of robust financial health and strategic foresight. The company reported record-breaking performances across all segments, despite facing challenges such as increased operating expenses and tariff impacts. The sentiment during the call was overwhelmingly positive, with a clear focus on sustained growth and strategic expansion.

Balchem Corporation Reports Strong Q2 2025 Results

Balchem Corporation is a company operating in the specialty chemicals sector, providing innovative solutions in human and animal nutrition, as well as specialty products. The company is known for its focus on micro-encapsulation technologies and its diverse product offerings across various industries.