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Balchem
(NASDAQ:BCPC)
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Rating:76Outperform
Price Target:
$187.00
▲(5.26% Upside)
Action:Reiterated
Date:06/23/26
The score is driven primarily by strong financial performance (expanding margins, low leverage, and solid cash generation) and a supportive earnings call indicating continued growth momentum. These positives are partially offset by premium valuation (high P/E and low yield) and only moderately favorable technical signals.
Positive Factors
Sustained margin expansion and profitability
Consistent quarter-to-quarter EBITDA growth and expanding margins reflect durable operational improvements: pricing, mix toward higher-margin products, and manufacturing efficiencies. This track record supports sustained cash flow generation and resilience through cyclical demand shifts over months.
Negative Factors
Petrochemical-driven input-cost inflation risk
Exposure to petrochemical-linked raw materials creates a structural vulnerability: input-cost spikes can persist and pass-through lags to customers may compress margins. For a materials supplier, sustained feedstock inflation can erode profitability until pricing or procurement mitigations take effect.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained margin expansion and profitability
Consistent quarter-to-quarter EBITDA growth and expanding margins reflect durable operational improvements: pricing, mix toward higher-margin products, and manufacturing efficiencies. This track record supports sustained cash flow generation and resilience through cyclical demand shifts over months.
Read all positive factors
Balchem (BCPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.25B
Dividend Yield0.61%
Average Volume (3M)253.88K
Price to Earnings (P/E)33.2
Beta (1Y)0.41
Revenue Growth9.62%
EPS Growth16.72%
CountryUS
Employees1,372
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.90
Shares Outstanding32,129,837
10 Day Avg. Volume302,296
30 Day Avg. Volume253,880
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 Cap1.03
Enterprise Value/Revenue5.10
Enterprise Value/Gross Profit14.06
Enterprise Value/Ebitda19.93
Forecast
1Y Price Target
$212.00Price Target Upside19.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented multiple record financial metrics (revenue, adjusted EBITDA, adjusted EPS, gross margin dollars) and showcased broad-based growth across all three segments, strong cash generation, improved margins, sustainability achievements, and promising branded-ingredient progress (notably Vidacholine). Headwinds include emerging petrochemical-driven inflation, higher operating expenses tied to growth investments, and geopolitical-related supply-chain/freight risk that could cause modest margin compression in the near term. Overall, the positive operational and financial momentum, coupled with manageable leverage and clear strategic initiatives, outweigh the noted risks.Positive Updates
Record Consolidated Revenue and Sales Growth
Reported record Q1 consolidated net sales of $271.0M, up 8.1% year-over-year; ~2% of the sales growth was favorably impacted by foreign currency (stronger euro).
Negative Updates
Input Cost Inflation and Margin Pressure Risk
Company warned of a renewed period of significant inflation—largely petrochemical-based—primarily impacting the Animal Nutrition & Health segment; management expects modest margin-rate compression due to timing lag between rising input costs and customer price adjustments.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Consolidated Revenue and Sales Growth
Reported record Q1 consolidated net sales of $271.0M, up 8.1% year-over-year; ~2% of the sales growth was favorably impacted by foreign currency (stronger euro).
Read all positive updates
Company Guidance
Balchem guided to continued quarterly year‑over‑year consolidated growth over the coming quarters while warning of modest margin compression from input‑cost inflation—especially in Animal Nutrition & Health—and saying it will use procurement, pricing actions and supply‑chain measures to mitigate pressures; management uses a ~23% effective tax planning rate (Q1 ETR 23.3%, Q2 expected higher, back half trending toward ~23%) and reiterated confidence in delivering continued top‑ and bottom‑line growth. As context, Q1 results were: revenue $271M (+8.1% YoY), gross margin $101M (37.3% of sales, +210 bps; gross margin dollars +14.6%), GAAP operating income $56M (+9%), adjusted operating income $61M (+9.5%), adjusted EBITDA $74M (+12.1%) with a 27.4% adjusted EBITDA margin, net income $40M (+8.7%), GAAP diluted EPS $1.25 (+10.6%), adjusted net earnings $43M (+7.4%) or $1.33 per diluted share, operating expenses $45M, cash from operations $40M, free cash flow $34M, cash on hand $73M, net debt $96M (net leverage 0.3), and net interest expense of ~$2M.Balchem Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.04B | 953.68M | 922.44M | 942.36M | 799.02M |
| Gross Profit | 383.55M | 370.63M | 336.21M | 302.06M | 280.45M | 243.17M |
| EBITDA | 270.65M | 254.44M | 230.95M | 214.81M | 195.87M | 176.57M |
| Net Income | 158.08M | 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 | 72.87M | 74.57M | 49.52M | 64.45M | 66.56M | 103.24M |
| Total Debt | 184.71M | 192.01M | 208.04M | 330.33M | 460.61M | 118.04M |
| Total Liabilities | 408.63M | 450.15M | 425.46M | 543.23M | 686.23M | 322.31M |
| Stockholders Equity | 1.29B | 1.26B | 1.15B | 1.05B | 938.28M | 877.01M |
Cash Flow | ||||||
| Free Cash Flow | 175.98M | 173.07M | 146.34M | 145.87M | 88.25M | 123.06M |
| Operating Cash Flow | 220.16M | 216.56M | 182.00M | 183.76M | 138.54M | 160.51M |
| Investing Cash Flow | -44.27M | -43.89M | -59.74M | -34.81M | -416.01M | -35.30M |
| Financing Cash Flow | -155.62M | -152.81M | -133.81M | -153.32M | 246.68M | -102.18M |
Balchem Technical Analysis
Negative
177.66
Price Trends
162.94
Negative
168.10
Negative
162.17
Negative
Market Momentum
0.56
Positive
40.39
Neutral
8.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCPC, the sentiment is Negative. The current price of 177.66 is above the 20-day moving average (MA) of 166.63, above the 50-day MA of 162.94, and above the 200-day MA of 162.17, indicating a bearish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 8.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $5.25B | 33.23 | 12.38% | 0.61% | 9.62% | 16.72% | |
70 Outperform | $4.41B | 16.38 | 18.29% | 2.72% | -8.52% | -31.91% | |
68 Neutral | $5.11B | 34.16 | 12.14% | 1.70% | 5.80% | 12.24% | |
62 Neutral | $6.62B | 45.86 | 1.59% | ― | -1.88% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.30B | 21.15 | 6.64% | 3.48% | 1.33% | 57.45% | |
57 Neutral | $9.89B | 64.88 | 5.56% | 1.25% | 13.00% | -48.06% |
* Basic Materials Sector Average
BCPC
Balchem
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4.07
2.58%
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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.