Want to see BCPC full AI Analyst Report?
Top Page
Balchem
(NASDAQ:BCPC)
Select Model
Select Model
Rating:76Outperform
Price Target:
$184.00
▲(13.02% Upside)
Action:Reiterated
Date:07/31/26
BCPC scores well primarily on strong financial performance (expanding margins, very low leverage, and robust operating/free cash flow) and a positive earnings call featuring record results and continued EBITDA growth. The overall score is moderated by premium valuation (P/E ~33.8 with a low ~0.59% yield) and mostly neutral technical positioning with the stock trading around key moving averages.
Positive Factors
Strong cash generation and FCF
Consistently high operating cash flow (~$220M TTM) and strong free cash flow (~$189M TTM) provide durable internal funding for R&D, marketing, buybacks and debt reduction. Robust cash conversion (OCF ~1.44x net income) supports flexibility through cycles and funds strategic investments without heavy external financing.
Negative Factors
Modest top-line momentum
Top-line growth has slowed to roughly ~2.7% TTM, implying the company's recent performance is more driven by margin and efficiency gains than volume expansion. This constrains longer-term earnings upside and makes results more sensitive to margin pressures or weaker end-market demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF
Consistently high operating cash flow (~$220M TTM) and strong free cash flow (~$189M TTM) provide durable internal funding for R&D, marketing, buybacks and debt reduction. Robust cash conversion (OCF ~1.44x net income) supports flexibility through cycles and funds strategic investments without heavy external financing.
Read all positive factors
Balchem (BCPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.38B
Dividend Yield0.57%
Average Volume (3M)242.99K
Price to Earnings (P/E)32.7
Beta (1Y)0.44
Revenue Growth10.14%
EPS Growth16.56%
CountryUS
Employees1,352
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)5.12
Shares Outstanding32,129,837
10 Day Avg. Volume177,076
30 Day Avg. Volume242,987
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)3.98
Price to Sales (P/S)4.82
P/FCF Ratio28.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$215.00Price Target Upside32.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.23
Revenue Forecast (FY)$1.11B
Balchem Business Overview & Revenue Model
Company Description
Balchem Corporation develops, manufactures, and distributes specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets worldwide. I...
How the Company Makes Money
Balchem makes money primarily by selling specialty ingredients and chemical products to business customers, with revenue recognized largely from product sales across its operating segments. In its Human Nutrition & Health segment, it generates sal...
Balchem Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveys a strongly positive operational and financial performance: record revenues, profits, adjusted EBITDA, broad-based segment growth, solid cash flow, low leverage, and strategic balance sheet actions (refinancing and buybacks). Headwinds noted include elevated input costs, slightly higher operating expenses and taxes, floating-rate exposure, and some reliance on pricing in A&H. On balance the positives — consistent record results, sustained growth momentum (28 consecutive quarters of adjusted EBITDA growth), and improved financial flexibility — materially outweigh the limited headwinds.Positive Updates
Record Consolidated Revenue and Earnings
Reported record quarterly consolidated revenue of $284.0M, up 11.2% year-over-year; GAAP earnings from operations of $59.0M, up 15.1%; consolidated net income of $45.0M, up 16.6%; GAAP diluted EPS $1.39, up 18.8%.
Negative Updates
Higher Manufacturing Input Costs
Company cited elevated input costs related to the conflict in the Middle East that partially pressured margins and required mitigation actions; some margin impact offset by operating leverage but remains a headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Revenue and Earnings
Reported record quarterly consolidated revenue of $284.0M, up 11.2% year-over-year; GAAP earnings from operations of $59.0M, up 15.1%; consolidated net income of $45.0M, up 16.6%; GAAP diluted EPS $1.39, up 18.8%.
Read all positive updates
Company Guidance
Management reiterated confidence in continued growth and margin performance while providing a number of near‑term financial parameters: Q2 revenue $284M (+11.2%), GAAP operating income $59M (+15.1%), adjusted EBITDA $78M (+12.6%) with a 27.4% adjusted‑EBITDA margin, adjusted net earnings $48M ($1.49 diluted), Q2 cash flow from operations $47M and free cash flow $36M, cash on hand $63M, net debt $89M (net leverage 0.3). They amended the revolving credit facility (increased capacity to $650M from $550M, extended maturity to 2031, currently $150M drawn) with SOFR‑based floating pricing (current all‑in ~4.5% and a 10 bps spread improvement), expect a full‑year effective tax rate of ~22.5–23%, repurchased ~$29M in Q2 (~$114M LTM), and noted this was their 28th consecutive quarter of year‑over‑year adjusted‑EBITDA growth.Balchem Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 1.04B | 953.68M | 922.44M | 942.36M | 799.02M |
| Gross Profit | 394.12M | 370.63M | 336.21M | 302.06M | 280.45M | 243.17M |
| EBITDA | 278.92M | 254.44M | 230.95M | 214.81M | 195.87M | 176.57M |
| Net Income | 164.41M | 154.84M | 128.47M | 108.54M | 105.37M | 96.10M |
Balance Sheet | ||||||
| Total Assets | 1.69B | 1.71B | 1.58B | 1.60B | 1.62B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 63.17M | 74.57M | 49.52M | 64.45M | 66.56M | 103.24M |
| Total Debt | 166.72M | 192.01M | 208.04M | 330.33M | 460.61M | 118.04M |
| Total Liabilities | 384.63M | 450.15M | 425.46M | 543.23M | 686.23M | 322.31M |
| Stockholders Equity | 1.30B | 1.26B | 1.15B | 1.05B | 938.28M | 877.01M |
Cash Flow | ||||||
| Free Cash Flow | 205.17M | 173.07M | 146.34M | 145.87M | 88.25M | 123.06M |
| Operating Cash Flow | 259.68M | 216.56M | 182.00M | 183.76M | 138.54M | 160.51M |
| Investing Cash Flow | -54.88M | -43.89M | -59.74M | -34.81M | -416.01M | -35.30M |
| Financing Cash Flow | -206.48M | -152.81M | -133.81M | -153.32M | 246.68M | -102.18M |
Balchem Technical Analysis
Positive
162.81
Price Trends
163.78
Positive
165.91
Positive
163.66
Positive
Market Momentum
0.73
Negative
66.66
Neutral
62.69
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 162.81 is below the 20-day moving average (MA) of 164.13, below the 50-day MA of 163.78, and below the 200-day MA of 163.66, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 62.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCPC.
Balchem Risk Analysis
Balchem disclosed 26 risk factors in its most recent earnings report. Balchem reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Balchem Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.38B | 32.73 | 12.79% | 0.59% | 10.14% | 16.56% | |
75 Outperform | $4.54B | 16.42 | 18.29% | 2.02% | -8.52% | -31.91% | |
69 Neutral | $5.26B | 33.16 | 13.02% | 1.31% | 8.12% | 16.87% | |
62 Neutral | $7.54B | 52.37 | 1.59% | ― | -1.88% | ― | |
62 Neutral | $8.95B | 49.96 | 6.57% | 0.85% | 26.61% | -25.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.33B | 21.12 | 6.64% | 2.91% | 1.33% | 57.45% |
* Basic Materials Sector Average
BCPC
Balchem
173.57
19.13
12.39%
CBT
Cabot
89.58
17.61
24.48%
AVNT
Avient
37.39
4.45
13.49%
SSL
Sasol
11.24
6.27
126.16%
SXT
Sensient Technologies
126.09
14.44
12.93%
ESI
Element Solutions
37.69
14.59
63.17%
Balchem Corporate Events
Executive/Board ChangesShareholder Meetings
Balchem Shareholders Approve Directors, Auditor and Compensation
Positive
Jun 22, 2026
Balchem Corporation reported the results of its June 18, 2026 Annual Meeting of Shareholders, where investors backed the company’s proposed slate of governance items. Shareholders elected David Fischer and Daniel Knutson as Class 3 directors...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.