The numbers: Third-quarter profit increased 43% to $6.9 million, or 36 cents a share. Revenue dropped 7% to $54 million. Balchem's operating margin climbed from 12% to 19%. The company has an admirable financial position, with $39 million of cash and $6.6 million of debt.
The stock: Balchem advanced 30% in the past year, outperforming the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 23, a discount to chemical peers. The shares offer a 0.4% dividend yield.