Is Balchem Cp (NASDAQ:BCPC) outlook still optimistic based on the current debt level?

BCPC Stock  USD 139.83  0.12  0.09%   
Balchem Cp is scheduled to announce its earnings today. Balchem Cp Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 72,972. The current year Revenue Per Employee is expected to grow to about 689.5 K, whereas Average Assets are forecasted to decline to about 1.1 B. Although many aggressive traders are getting into basic materials space, Balchem Cp may or may not be your first choice.
Published over three months ago
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The company currently holds 446.68 M in liabilities with Debt to Equity (D/E) ratio of 0.5, which is about average as compared to similar companies.
Balchem Cp has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.9673, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Balchem's beta means in this case. Balchem Cp returns are very sensitive to returns on the market. As the market goes up or down, Balchem Cp is expected to follow. Although it is important to respect Balchem Cp historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Balchem Cp technical indicators, you can presently evaluate if the expected return of 0.0896% will be sustainable into the future. Balchem Cp right now shows a risk of 1.83%. Please confirm Balchem Cp jensen alpha, potential upside, accumulation distribution, as well as the relationship between the treynor ratio and expected short fall to decide if Balchem Cp will be following its price patterns.
Balchem financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Balchem, including all of Balchem's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Balchem assets, the company is considered highly leveraged. Understanding the composition and structure of overall Balchem debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Balchem Total Debt

Balchem liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Balchem has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Balchem balance sheet include debt obligations and money owed to different Balchem vendors, workers, and loan providers. Below is the chart of Balchem main long-term debt accounts currently reported on its balance sheet.
You can use Balchem financial leverage analysis tool to get a better grip on understanding its financial position

How important is Balchem's Liquidity

Balchem financial leverage refers to using borrowed capital as a funding source to finance Balchem ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Balchem financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Balchem's total debt and its cash.

Balchem Cp exotic insider transaction detected

Legal trades by Balchem 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 general transaction of common stock by Van Gunsteren Job Leonard, SVP and GM Specialty Products, on 7th of October 2022. This event was filed by Balchem Corp with SEC on 2022-10-07. Initial filing of beneficial ownership - SEC Form 3 [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.

Going after Balchem Financials

Balchem Cp reported the previous year's revenue of 876.56 M. Net Income was 108.67 M with profit before overhead, payroll, taxes, and interest of 243.17 M.

Asset Breakdown

809.7 M
Assets Non Current
581.2 M
Goodwill
262 M
Current Assets
Total Assets959.18 Million
Current Assets261.99 Million
Assets Non Current809.71 Million
Goodwill581.23 Million
Tax Assets3.45 Million

Balchem Cp implied volatility may change after the rise

Current Sortino Ratio is up to 0.08. Price may slip again. Balchem Cp has relatively low volatility with skewness of 0.06 and kurtosis of -0.74. 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 bullish 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.

Whereas some firms under the specialty chemicals industry are still a bit expensive, Balchem Cp may offer a potential longer-term growth to investors. On the whole, as of the 4th of November 2022, we see that Balchem Cp almost mirrors the market. The company is undervalued with low chance of financial distress within the next 24 months. Our final 90 days recommendation on the company is Strong Hold.

Editorial Staff

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 Rifka Kats do not own shares of Balchem. Please refer to our Terms of Use for any information regarding our disclosure principles.

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