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Balchem Corp
BCPC : NASDAQ : Basic Materials
$52.34 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 113,500
08/27/14 - 3:59 PM ET

Financial Analysis


BALCHEM CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. BALCHEM CORP has strong liquidity. Currently, the Quick Ratio is 1.63 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.64% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)132.2383.3
EBITDA ($mil)29.9819.23
EBIT ($mil)22.7516.62
Net Income ($mil)9.7311.58


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)59.71171.22
Total Assets ($mil)892.92339.45
Total Debt ($mil)400.00.0
Equity ($mil)356.22305.39


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin33.533.01
EBITDA Margin22.6723.08
Operating Margin17.219.95
Sales Turnover0.430.95
Return on Assets4.5912.73
Return on Equity11.5114.15
Debt Q2 FY14 Q2 FY13
Current Ratio2.429.38
Debt/Capital0.530.0
Interest Expense1.320.0
Interest Coverage17.38308.0


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)30.4929.85
Div / share0.00.0
EPS0.310.38
Book value / share11.6810.23
Institutional Own % n/a n/a
Avg Daily Volume112120.0149481.0

Valuation


BUY. BALCHEM CORP's P/E ratio indicates a significant premium compared to an average of 23.93 for the Chemicals industry and a significant premium compared to the S&P 500 average of 19.76. Conducting a second comparison, its price-to-book ratio of 4.53 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 4.30. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, BALCHEM CORP proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BCPC 39.80 Peers 23.93   BCPC 27.13 Peers 16.18

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BCPC is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BCPC is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BCPC 19.46 Peers 19.54   BCPC 1.44 Peers 1.28

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BCPC is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BCPC trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BCPC 4.53 Peers 4.30   BCPC -7.00 Peers 61.16

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BCPC is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BCPC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BCPC 4.17 Peers 2.50   BCPC 19.90 Peers 3.71

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BCPC is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BCPC has a sales growth rate that significantly exceeds its peers.

 

 

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