Balchem Corp

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BCPC : NASDAQ : Basic Materials
$77.8 -0.38 | -0.49%
Today's Range: 77.76 - 78.57
Avg. Daily Volume: 93000.0
06/22/17 - 1:07 PM ET

Financial Analysis


BALCHEM CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. BALCHEM CORP has average liquidity. Currently, the Quick Ratio is 1.37 which shows that technically this company has 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 12.92% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)137.73135.14
EBITDA ($mil)34.0933.86
EBIT ($mil)22.7622.84
Net Income ($mil)15.5211.89


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)37.039.17
Total Assets ($mil)941.39970.23
Total Debt ($mil)268.86352.35
Equity ($mil)542.3480.25


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.4941.62
EBITDA Margin24.7525.05
Operating Margin16.5216.9
Sales Turnover0.590.56
Return on Assets6.335.81
Return on Equity10.9911.75
Debt Q1 FY17 Q1 FY16
Current Ratio2.22.26
Debt/Capital0.330.42
Interest Expense1.81.84
Interest Coverage12.6512.39


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)31.8731.58
Div / share0.00.0
EPS0.480.37
Book value / share17.0215.21
Institutional Own % n/a n/a
Avg Daily Volume98330.0116793.0

Valuation


BUY. BALCHEM CORP's P/E ratio indicates a significant premium compared to an average of 30.71 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 4.79 indicates a significant premium versus the S&P 500 average of 3.08 and a discount versus the industry average of 5.59. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, BALCHEM CORP seems to be trading 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 43.81 Peers 30.71   BCPC 25.66 Peers 16.52

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 28.89 Peers 20.26   BCPC 0.94 Peers 4.43

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.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BCPC 4.79 Peers 5.59   BCPC 5.08 Peers 7.08

Discount. 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 discount to 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 4.67 Peers 2.43   BCPC 2.39 Peers 3.46

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BCPC significantly trails its peers on the basis of sales growth

 

 

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