Balchem Corp

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BCPC : NASDAQ : Basic Materials
$63.39 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 108,100
07/28/16 - 4:00 PM ET

Financial Analysis


BALCHEM CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. BALCHEM CORP has average liquidity. Currently, the Quick Ratio is 1.38 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.

During the same period, stockholders' equity ("net worth") has increased by 16.78% 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 FY16 Q1 FY15
Net Sales ($mil)135.14144.86
EBITDA ($mil)33.8635.06
EBIT ($mil)22.8425.04
Net Income ($mil)11.8915.17


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)39.1756.61
Total Assets ($mil)970.23854.84
Total Debt ($mil)352.35323.75
Equity ($mil)480.25411.22


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin41.6236.69
EBITDA Margin25.0524.2
Operating Margin16.917.28
Sales Turnover0.560.7
Return on Assets5.816.91
Return on Equity11.7514.37
Debt Q1 FY16 Q1 FY15
Current Ratio2.262.29
Debt/Capital0.420.44
Interest Expense1.841.88
Interest Coverage12.3913.31


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)31.5831.06
Div / share0.00.0
EPS0.370.48
Book value / share15.2113.24
Institutional Own % n/a n/a
Avg Daily Volume109489.0127295.0

Valuation


BUY. BALCHEM CORP's P/E ratio indicates a significant premium compared to an average of 24.44 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.91. 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 35.53 Peers 24.44   BCPC 18.68 Peers 15.53

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 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 21.32 Peers 19.75   BCPC 0.88 Peers 2.43

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 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 4.13 Peers 5.91   BCPC -6.35 Peers 43.16

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 significant 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 3.66 Peers 2.18   BCPC -9.58 Peers -6.08

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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