The company currently holds 176.85
M in liabilities with Debt to Equity (D/E) ratio of 0.21, which may suggest the firm is not taking enough advantage from borrowing. Balchem Cp has a current ratio of 2.77, 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 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 based exclusively on its
fundamental and basic
technical indicators. By analyzing Balchem'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'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. We calculate exposure to Balchem's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Balchem's related companies.
Balchem 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 performance across your portfolios.Please check all
investment alerts for Balchem
Balchem 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 competition to find
correlations between indicators driving the intrinsic value of Balchem.
Balchem Gross Profit
Balchem Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Balchem previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Balchem Gross Profit growth over the last 10 years. Please check Balchem's
gross profit and other
fundamental indicators for more details.
Going after Balchem Financials
The entity reported the previous year's revenue of 703.64
M. Net Income was 84.62
M with profit before overhead, payroll, taxes, and interest of 223.9
M.
| 2018 | 2019 | 2020 | 2021 (projected) |
Consolidated Income | 78.57 M | 79.67 M | 84.62 M | 79.19 M | Direct Expenses | 439.43 M | 432.34 M | 479.75 M | 396.22 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 Margin | 18.37 |
| EBITDA Margin | 0.27 |
| Gross Margin | 0.35 |
| Profit Margin | 0.11 |
Balchem Cp Revenue Per Employee is somewhat stable at the moment. Also, Balchem Cp Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment.
Will Balchem Cp growth be reliable after the rise?
Balchem Cp current downside deviation builds up over 1.6. Balchem Cp has relatively low volatility with skewness of 0.44 and kurtosis of 1.57. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Balchem Cp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Balchem Cp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
Whereas many of the other players 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. To conclude, as of the 30th of April 2021, our primary 30 days buy-or-sell advice on the company is
Strong Hold. We believe Balchem Cp is currently
undervalued with
very small probability of bankruptcy for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Balchem. Please refer to our
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