Balchem Corporation consists of four business segments: ARC Specialty Products, SensoryEffects (formerly Food, Pharma and Nutrition), Animal Nutrition & Health, and Industrial Products. Through ARC Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries. The company was founded in 1967 and is based in New Hampton, New York.
BCPC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BCPC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Balchem Corp ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 63.17%. As for the metrics that stood out in our discounted cash flow analysis of Balchem Corp, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 94. Its equity weight surpasses that of 87.44% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 16.54% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BCPC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 42.42% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BCPC, try OR, TECK, CDE, MAS, and SYNL.
Source Balchem corporation (BCPC) is a 3.2 billion dollar market cap specialty products maker. The company is headquartered in New Hampton, NY. I am relatively aware of the company and its operations as I happen to live nearby. This little bit of insight has allowed me to benefit from being...
AllStarTrader on Seeking Alpha | September 10, 2020
NEW HAMPTON, N.Y., July 31, 2020 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) reported today record second quarter net earnings of $21.1 million for 2020, compared to net earnings of $19.8 million for the second quarter 2019. Record second quarter adjusted net earnings(a) were $27.6 million, compared to $25.2 million in the prior year quarter, and adjusted EBITDA(a) was an all-time record of $43.9 million, compared to $40.0 million in the prior year quarter. Second Quarter 2020 Financial Highlights: * Net sales of $173.4 million, an increase of $11.8 million, or 7.3%, compared to the prior year quarter, with year over year sales growth in Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. * GAAP net earnings were $21.1 million, an increase of ...