Balchem Story

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BCPC -- USA Stock  

USD 119.36  0.39  0.33%

As many millenniums are trying to avoid basic materials space, it makes sense to go over Balchem Cp a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Balchem Cp shareholders. Is Balchem Cp valuation sustainable? Here I will cover a perspective on valuation of Balchem to give you a better outlook on taking a position in this stock.
Published over a week ago
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The impact of current bullish trends on Balchem Cp (NASDAQ:BCPC)
The company currently holds 206.82 M in liabilities with Debt to Equity (D/E) ratio of 0.25, which may suggest the firm is not taking enough advantage from borrowing. Balchem Cp has a current ratio of 3.87, suggesting that it is liquid enough and is able to pay its financial obligations when due. Macroaxis provides advice on Balchem Cp to complement and cross-verify current analyst consensus on Balchem Cp. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Balchem Cp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Balchem Cp based exclusively on its fundamental and basic technical indicators. By analyzing Balchem Cp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Balchem Cp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Balchem Cp. We calculate exposure to Balchem Cp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Balchem Cp's related companies.

Balchem Cp Investment Alerts

Balchem investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Balchem Cp performance across your portfolios.Please check all investment alerts for Balchem

Balchem Cp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Balchem value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Balchem Cp competition to find correlations between indicators driving the intrinsic value of Balchem.

How Balchem utilizes its cash?

To perform a cash flow analysis of Balchem Cp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Balchem Cp is receiving and how much cash it distributes out in a given period. The Balchem Cp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Balchem Cp Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 150.49 Million

Payment of 548 shares by John Televantos of Balchem Cp subject to Rule 16b-3

Legal trades by Balchem Cp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Balchem insider trading alert for payment of common stock by John Televantos, the corporate stakeholder, on 23rd of February 2021. This event was filed by Balchem Corp with SEC on 2021-02-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Balchem Cp Investors

The entity reported the previous year's revenue of 689.46 M. Net Income was 82.84 M with profit before overhead, payroll, taxes, and interest of 211.37 M.
 2018 2019 2020 2021 (projected)
Consolidated Income78.57 M79.67 M91.62 M81.44 M
Direct Expenses439.43 M432.34 M389.1 M342.69 M

Margins Breakdown

Balchem profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Balchem Cp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Balchem Cp profit margins.
Operating Margin19.78
EBITDA Margin0.27
Gross Margin0.37
Profit Margin0.11

Balchem Cp Net Income Per Employee is somewhat stable at the moment. Also, Balchem Cp Average Assets is increasing over the last 8 years.

Balchem Cp is epected to finish above $113 in March

The total risk alpha is down to -0.12 as of today. Balchem Cp has relatively low volatility with skewness of 0.54 and kurtosis of 3.6. However, we advise all investors to independently investigate Balchem Cp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

Whereas some other firms within the specialty chemicals industry are still a little expensive, even after the recent corrections, Balchem Cp may offer a potential longer-term growth to investors. All things considered, as of the 19th of February 2021, our up-to-date 30 days recommendation on the company is Strong Hold. We believe Balchem Cp is currently fairly valued with very low probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Balchem Cp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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