One-glance verdict
Within fair range
$162.73 our estimate vs market $166.55
Wall Street consensus: $208.00 (27.8% higher than our fair-value estimate)
2% above our estimate
Fundamentals snapshot
Balchem Corporation
BCPC · NMS · Basic Materials · Specialty Chemicals
Current price
$166.55
52-week range
$147.18 - $183.90
Market cap
$5.31B
Balance sheet
Healthy
20.48x Strong cushion
Net debt $76.18M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.9% last year.
- Reward Returns 13.0% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.5% (peer median: 1.0%).
What this company does
Balchem Corporation
Balchem Corporation makes special ingredients for food, health, and animal feed, with most of its money coming from its Human Nutrition & Health business which supplies things like vitamins and flavor systems to food companies. This business is important because it helps create healthier and tastier products that people use every day.
How the company got here
Balchem Corporation, founded in 1967, has grown into a global leader in specialty performance ingredients. The company's journey has been marked by a consistent focus on science-backed solutions for diverse markets. Over the decades, Balchem has strategically expanded its product portfolio and market reach through innovation and targeted acquisitions. This evolution has positioned Balchem as a key supplier in sectors ranging from human and animal nutrition to industrial applications.
What it actually does
Balchem creates and sells specialized ingredients that improve the performance and quality of products people and animals use every day. Think of them as the "secret sauce" that makes food taste better, supplements more effective, or industrial processes safer. They use advanced science, like microencapsulation (tiny protective coatings for ingredients), to deliver these benefits across various industries.
Human Nutrition & Health
This segment is a major part of Balchem's business, focusing on ingredients for the food, beverage, and dietary supplement industries. They provide things like specialized powders, flavor delivery systems, and essential nutrients like vitamin K2 and choline. These ingredients help make foods more appealing, extend shelf life, and boost the nutritional value of products consumers eat and drink.
Animal Nutrition & Health
Balchem's Animal Nutrition & Health segment is dedicated to improving the well-being and productivity of livestock and companion animals. They offer microencapsulated nutrients that help animals absorb more goodness from their feed, leading to better health and milk production in cows, for example. This part of the business also includes essential nutrients like choline chloride and specialized minerals that support animal growth and health across different species.
Specialty Products
The Specialty Products segment serves critical industrial and healthcare markets. A key function is distributing ethylene oxide and ammonia, which are vital for sterilizing medical devices, ensuring patient safety. This segment also provides chemicals used as fumigants to protect food products like nuts and spices from insects and spoilage, and offers specialized minerals to enhance crop nutrition and yield.
What management is betting on now
Balchem's leadership is focused on leveraging its scientific expertise to drive growth in its core markets. A key strategy involves expanding the reach of its innovative microencapsulation technology into new applications and geographies. Management is also prioritizing the development of high-value nutritional ingredients for both human and animal health, aiming to capitalize on increasing consumer demand for healthier and more sustainable products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$290.66M
Net income
$46.73M
Diluted EPS
1.46
Operating cash flow
$69.77M
Free cash flow
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Revenue
$284.00M
Net income
$44.62M
Diluted EPS
1.39
Operating cash flow
$46.71M
Free cash flow
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Revenue
$270.71M
Net income
$40.28M
Diluted EPS
1.25
Operating cash flow
$40.06M
Free cash flow
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Revenue
$263.62M
Net income
$39.23M
Diluted EPS
1.21
Operating cash flow
$67.28M
Free cash flow
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Revenue
$267.56M
Net income
$40.29M
Diluted EPS
1.24
Operating cash flow
$65.57M
Free cash flow
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Revenue
$255.47M
Net income
$38.28M
Diluted EPS
1.17
Operating cash flow
$47.25M
Free cash flow
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Revenue
$250.52M
Net income
$37.05M
Diluted EPS
1.13
Operating cash flow
$36.46M
Free cash flow
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Revenue
$240.00M
Net income
$33.58M
Diluted EPS
1.03
Operating cash flow
$52.32M
Free cash flow
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Is it cheap or expensive?
Fair value $162.73 vs current price $166.55
Wall Street consensus is the average analyst price target: $208.00 (27.8% higher than our fair-value estimate).
Our most-likely fair value is $162.73 a share — about 2.3% away from today's price of $166.55, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $76.2M. Interest coverage 20.5x.
Net debt
$76.18M
Interest coverage
20.48x
Balchem Corporation's profit covers its interest bill about 20.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
BCPC
BASELINE
Balchem Corporation
Total debt $142.44M Interest coverage 20.48x This is the baseline the peer rows are being compared against.
Total debt $763.90M Interest coverage 7.00x -66% vs BCPC Carries about 2.9x less debt cushion than BCPC.
Total debt $6.28B Interest coverage 3.68x -82% vs BCPC Carries about 5.6x less debt cushion than BCPC.
Total debt $1.48B Interest coverage 1.44x -93% vs BCPC Carries about 14.2x less debt cushion than BCPC.
Total debt $1.78B Interest coverage 28.03x +37% vs BCPC Carries about 1.4x more debt cushion than BCPC.
What you should know
The case for and against BCPC
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.9% last year.
-
Returns 13.0% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Insider ownership is only 0.5% (peer median: 1.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.42x
Forward P/E
26.55x
P/B
3.99x
P/S
4.79x
EV/EBITDA
19.55x
PEG ratio
3.30x
Profitability
How much profit each dollar creates
Gross margin
36.5%
Operating margin
21.5%
Net margin
15.4%
ROE
13.0%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
2.47x
Quick ratio
1.29x
Total debt
$142.44M
Total cash
$66.26M
Growth
How the business has been compounding
Revenue TTM
$1.11B
Revenue 5Y CAGR
6.7%
EPS TTM
5.30
EPS 5Y CAGR
13.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$223.82M
Free CF TTM
$173.07M
FCF margin
15.6%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
18.1%
Last ex-div date
2025-12-23