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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Balchem Corp. To summarize, we found that Balchem Corp ranked in the 28th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Balchem Corp ended up being:
The company's balance sheet shows it gets 94% of its capital from equity, and 6% of its capital from debt. Its equity weight surpasses that of 86.91% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than just 16.89% of the free cash flow producing stocks we're observing.
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 41.87% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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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 ...