Balchem Return On Equity vs. Revenue
| BCPC Stock | USD 152.25 1.58 1.03% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.10298354 | Current Value 0.17 | Quarterly Volatility 0.03315544 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.44 | 0.3275 |
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| Net Profit Margin | 0.0741 | 0.1177 |
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| Operating Profit Margin | 0.11 | 0.1931 |
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| Pretax Profit Margin | 0.1 | 0.1488 |
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| Return On Assets | 0.11 | 0.0668 |
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| Return On Equity | 0.17 | 0.103 |
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For Balchem profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Balchem to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Balchem utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Balchem's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Balchem over time as well as its relative position and ranking within its peers.
Balchem |
Balchem's Revenue Breakdown by Earning Segment
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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Balchem. If investors know Balchem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Balchem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.271 | Dividend Share 0.79 | Earnings Share 3.55 | Revenue Per Share 28.912 | Quarterly Revenue Growth 0.031 |
The market value of Balchem is measured differently than its book value, which is the value of Balchem that is recorded on the company's balance sheet. Investors also form their own opinion of Balchem's value that differs from its market value or its book value, called intrinsic value, which is Balchem's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Balchem's market value can be influenced by many factors that don't directly affect Balchem's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Balchem's value and its price as these two are different measures arrived at by different means. Investors typically determine if Balchem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Balchem's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Balchem Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Balchem's current stock value. Our valuation model uses many indicators to compare Balchem value to that of its competitors to determine the firm's financial worth. Balchem is rated second in return on equity category among its peers. It is rated below average in revenue category among its peers totaling about 8,243,422,699 of Revenue per Return On Equity. At present, Balchem's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Balchem's earnings, one of the primary drivers of an investment's value.Balchem's Earnings Breakdown by Geography
Balchem Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Balchem |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Balchem |
| = | 922.44 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Balchem Revenue vs Competition
Balchem is rated below average in revenue category among its peers. Market size based on revenue of Materials industry is currently estimated at about 10.75 Billion. Balchem holds roughly 922.44 Million in revenue claiming about 9% of all equities under Materials industry.
Balchem Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Balchem, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Balchem will eventually generate negative long term returns. The profitability progress is the general direction of Balchem's change in net profit over the period of time. It can combine multiple indicators of Balchem, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 8.7 M | 9.1 M | |
| Operating Income | 178.1 M | 187 M | |
| Income Before Tax | 137.3 M | 144.1 M | |
| Total Other Income Expense Net | -40.8 M | -38.8 M | |
| Net Income | 108.5 M | 114 M | |
| Income Tax Expense | 28.7 M | 30.2 M | |
| Net Income Applicable To Common Shares | 121.2 M | 127.2 M | |
| Net Income From Continuing Ops | 108.5 M | 79.1 M | |
| Non Operating Income Net Other | -1.1 M | -999.5 K | |
| Interest Income | 6.4 M | 4.3 M | |
| Net Interest Income | -22.6 M | -21.5 M | |
| Change To Netincome | 6 M | 6.3 M | |
| Net Income Per Share | 3.38 | 3.55 | |
| Income Quality | 1.69 | 1.67 | |
| Net Income Per E B T | 0.79 | 0.54 |
Balchem Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Balchem. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Balchem position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Balchem's important profitability drivers and their relationship over time.
Use Balchem in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Balchem position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Balchem will appreciate offsetting losses from the drop in the long position's value.Balchem Pair Trading
Balchem Pair Trading Analysis
The ability to find closely correlated positions to Balchem could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Balchem when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Balchem - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Balchem to buy it.
The correlation of Balchem is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Balchem moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Balchem moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Balchem can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Balchem position
In addition to having Balchem in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that invest in entities that are involved in mining, processing or dealing of precious metals. The Precious Metals Funds theme has 32 constituents at this time.
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Additional Information and Resources on Investing in Balchem Stock
When determining whether Balchem offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Balchem's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Balchem Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Balchem Stock:Check out Trending Equities. For information on how to trade Balchem Stock refer to our How to Trade Balchem Stock guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project Balchem's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Balchem at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Balchem's income statement, its balance sheet, and the statement of cash flows.