Latest Ratios: P/E Ratio 35.5x · EV/EBITDA 21.0x · ROE 12.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.4B | $5.0B | $5.3B | $4.8B | $4.0B | $5.5B | $3.7B | $3.3B | $2.5B | $2.6B | $2.7B |
| Enterprise Value | $5.5B | $5.1B | $5.5B | $5.1B | $4.3B | $5.5B | $3.8B | $3.5B | $2.6B | $2.8B | $2.9B |
| P/E Ratio → | 35.45 | 32.29 | 41.48 | 44.40 | 37.57 | 57.35 | 44.32 | 41.48 | 32.38 | 28.89 | 47.95 |
| P/S Ratio | 5.22 | 4.82 | 5.59 | 5.23 | 4.20 | 6.89 | 5.32 | 5.13 | 3.95 | 4.37 | 4.84 |
| P/B Ratio | 4.37 | 3.98 | 4.64 | 4.58 | 4.22 | 6.28 | 4.52 | 4.44 | 3.68 | 4.21 | 5.14 |
| P/FCF | 31.26 | 28.89 | 36.44 | 33.09 | 44.82 | 44.76 | 32.10 | 34.39 | 25.68 | 31.48 | 32.04 |
| P/OCF | 24.99 | 23.09 | 29.30 | 26.27 | 28.55 | 34.32 | 24.88 | 26.54 | 21.42 | 23.48 | 24.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.93 | 5.76 | 5.52 | 4.62 | 6.91 | 5.45 | 5.43 | 4.11 | 4.67 | 5.28 |
| EV / EBITDA | 20.98 | 19.42 | 23.79 | 23.78 | 22.08 | 31.31 | 23.59 | 23.54 | 17.42 | 19.65 | 21.31 |
| EV / EBIT | 25.32 | 24.46 | 30.01 | 31.85 | 30.20 | 43.26 | 34.57 | 34.11 | 24.79 | 28.91 | 32.39 |
| EV / FCF | — | 29.57 | 37.53 | 34.91 | 49.29 | 44.88 | 32.85 | 36.37 | 26.71 | 33.64 | 34.93 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.7% | 35.7% | 35.3% | 32.7% | 29.8% | 30.4% | 31.8% | 32.8% | 31.7% | 31.8% | 32.7% |
| Operating Margin | 21.1% | 21.1% | 19.2% | 17.3% | 15.4% | 16.0% | 15.8% | 15.9% | 16.6% | 16.3% | 16.4% |
| Net Profit Margin | 14.9% | 14.9% | 13.5% | 11.8% | 11.2% | 12.0% | 12.0% | 12.4% | 12.2% | 15.1% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.9% | 12.9% | 11.7% | 10.9% | 11.6% | 11.3% | 10.8% | 11.1% | 12.0% | 15.8% | 11.4% |
| ROA | 9.4% | 9.4% | 8.1% | 6.7% | 7.5% | 8.1% | 7.3% | 7.5% | 8.1% | 9.4% | 6.1% |
| ROIC | 12.2% | 12.2% | 10.4% | 9.0% | 9.8% | 10.6% | 9.0% | 8.9% | 10.1% | 9.3% | 9.5% |
| ROCE | 14.8% | 14.8% | 12.8% | 10.9% | 11.4% | 12.0% | 10.4% | 10.5% | 12.2% | 11.4% | 11.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.15 | 0.15 | 0.18 | 0.31 | 0.49 | 0.13 | 0.21 | 0.34 | 0.23 | 0.35 | 0.54 |
| Debt / EBITDA | 0.73 | 0.73 | 0.90 | 1.54 | 2.34 | 0.67 | 1.06 | 1.72 | 1.03 | 1.55 | 2.05 |
| Net Debt / Equity | — | 0.09 | 0.14 | 0.25 | 0.42 | 0.02 | 0.11 | 0.26 | 0.15 | 0.29 | 0.46 |
| Net Debt / EBITDA | 0.45 | 0.45 | 0.69 | 1.24 | 2.00 | 0.08 | 0.54 | 1.28 | 0.67 | 1.26 | 1.76 |
| Debt / FCF | — | 0.68 | 1.08 | 1.82 | 4.47 | 0.12 | 0.75 | 1.98 | 1.03 | 2.16 | 2.89 |
| Interest Coverage | 20.48 | 20.48 | 11.07 | 7.07 | 14.03 | 51.99 | 24.97 | 17.19 | 14.01 | 12.73 | 12.41 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.07 | 2.07 | 1.99 | 2.12 | 2.40 | 2.24 | 2.83 | 2.76 | 2.76 | 1.84 | 1.87 |
| Quick Ratio | 1.33 | 1.33 | 1.16 | 1.38 | 1.54 | 1.61 | 2.08 | 1.85 | 1.94 | 1.28 | 1.30 |
| Cash Ratio | 0.42 | 0.42 | 0.31 | 0.43 | 0.48 | 0.72 | 0.90 | 0.71 | 0.66 | 0.37 | 0.38 |
| Asset Turnover | — | 0.61 | 0.61 | 0.58 | 0.58 | 0.67 | 0.60 | 0.56 | 0.66 | 0.62 | 0.58 |
| Inventory Turnover | 5.07 | 5.07 | 4.72 | 5.66 | 5.53 | 6.10 | 6.79 | 5.15 | 6.54 | 6.69 | 6.50 |
| Days Sales Outstanding | — | 50.53 | 45.80 | 49.57 | 50.96 | 53.63 | 50.95 | 52.99 | 56.45 | 55.98 | 54.93 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.6% | 0.5% | 0.5% | 0.5% | 0.3% | 0.4% | 0.5% | 0.5% | 0.5% | 0.4% |
| Payout Ratio | 18.3% | 18.3% | 19.9% | 21.1% | 19.7% | 19.5% | 19.7% | 19.0% | 17.1% | 13.4% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.1% | 2.4% | 2.3% | 2.7% | 1.7% | 2.3% | 2.4% | 3.1% | 3.5% | 2.1% |
| FCF Yield | 3.2% | 3.5% | 2.7% | 3.0% | 2.2% | 2.2% | 3.1% | 2.9% | 3.9% | 3.2% | 3.1% |
| Buyback Yield | 2.0% | 2.2% | 0.1% | 0.1% | 0.9% | 0.6% | 0.4% | 0.6% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 2.5% | 2.7% | 0.6% | 0.6% | 1.4% | 1.0% | 0.8% | 1.1% | 0.6% | 0.5% | 0.5% |
| Shares Outstanding | — | $33M | $33M | $32M | $32M | $33M | $33M | $33M | $32M | $32M | $32M |
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Quick answers to the most common questions about buying BCPC stock.
Balchem Corp's current P/E ratio is 35.5x. The historical average is 29.5x. This places it at the 70th percentile of its historical range.
Balchem Corp's current EV/EBITDA is 21.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.6x.
Balchem Corp's return on equity (ROE) is 12.9%. The historical average is 16.7%.
Based on historical data, Balchem Corp is trading at a P/E of 35.5x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Balchem Corp's current dividend yield is 0.52% with a payout ratio of 18.3%.
Balchem Corp has 35.7% gross margin and 21.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Balchem Corp's Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Ethylene oxide regulatory risk
Metrics are mathematically derived from official filings.
Premium Multiple Justified by Defensive Mix
Balchem trades at 37.8x trailing earnings and 22.3x EV/EBITDA, per reported multiples, a substantial premium to specialty chemical peers like Ingredion (9.3x P/E) and Innospec (19.8x P/E). This premium appears supported by its defensive healthcare and nutrition exposure.
The forward P/E of 34.3x implies the market expects continued earnings growth, but the PEG of 2.95 suggests that growth is already priced in. Compared to Hawkins (PEG 2.19) and Ingredion (PEG 0.56), Balchem's valuation seems stretched unless the company can sustain double-digit organic growth. The EV/EBITDA premium over Avient (14.4x) and Innospec (9.9x) reflects Balchem's lower cyclicality and fortress balance sheet, but investors should monitor whether the growth premium is justified by actual margin expansion.
Margin Expansion Masks Underlying Cost Pressures
Gross margin improved to 36.5% in 2026Q2 from 35.5% in 2024Q2, per financial statements, while operating margin rose to 20.9% from 19.6%. However, the recent EPS miss suggests that input cost volatility may be eroding the bottom line.
The sequential decline in gross margin from 37.3% in 2026Q1 to 36.5% in 2026Q2, as reported, indicates that pricing power may be waning or raw material costs are rising faster than pass-through. Net margin of 15.7% remains healthy, but the gap between operating and net margin suggests higher interest or tax expenses. The 2026Q2 EPS miss of $0.12 versus consensus, despite record sales, implies that margin pressure is real and may persist if ethylene and ammonia costs remain elevated.
ROIC Trapped by Intangible-Heavy Base
ROIC improved to 3.2% in 2026Q2 from 2.4% in 2024Q1, per reported data, but remains low due to a large goodwill base of $808.8M. This suggests that acquisitions have not yet generated returns commensurate with their cost.
The steady climb in ROIC from 2.4% to 3.2% over ten quarters indicates operational improvement, but the absolute level is far below peers like Ingredion (15.5%) and Hawkins (12.3%). The intangible-heavy asset base, nearly half of total assets, dilutes returns on capital. Management's conservative leverage and disciplined acquisitions may eventually lift ROIC, but the current trajectory suggests a slow compounding process. Investors should monitor whether organic growth can outpace the amortization drag.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 91 days in 2026Q2 from 80 days in 2024Q1, per reported figures, driven by rising DIO (78 days) and DSO (49 days). This indicates that Balchem is tying up more cash in inventory and receivables.
The increase in DIO from 63 days to 78 days over the period suggests inventory build-up, possibly due to anticipated demand or supply chain disruptions. DSO also rose from 50 to 49 days, but the more concerning trend is the widening CCC, which consumes cash. Despite this, FCF margin improved to 12.6% in 2026Q2, indicating that operational cash flow is still strong. However, if the CCC continues to expand, it could pressure future cash generation and limit capital returns.
Fortress Balance Sheet Provides Strategic Flexibility
Debt-to-equity fell to 0.13 in 2026Q2 from 0.30 in 2024Q1, per financial statements, while interest coverage soared to 41.1x from 7.8x. This indicates minimal leverage and ample capacity for debt-funded growth or acquisitions.
The dramatic improvement in interest coverage, from 7.8x to 41.1x, reflects both lower debt and higher operating income. D/EBITDA also declined to 2.33x from 5.81x, suggesting that Balchem could easily take on additional debt if management chose to pursue a transformative acquisition. The fortress balance sheet insulates the company from rising interest rates and provides a cushion against regulatory or operational shocks. However, the conservative stance may limit growth opportunities, as evidenced by the modest 8.75% revenue growth.
Liquidity Robust but Inventory-Heavy
Current ratio improved to 2.66 in 2026Q2 from 2.61 in 2024Q1, per reported data, while quick ratio rose to 1.56. This indicates a strong liquidity position, though inventory constitutes a significant portion of current assets.
The quick ratio of 1.56 suggests that Balchem can cover short-term obligations without relying on inventory sales, which is reassuring. However, the rising DIO (78 days) implies that inventory is becoming a larger component of working capital, potentially exposing the company to obsolescence or price declines. The cash balance of $63.2M provides a buffer, but the company's ability to weather a severe downturn is supported by its low debt and high interest coverage. Overall, liquidity appears adequate for current needs, but the inventory build-up warrants monitoring.
P/E Misleads on Growth and Capital Structure
The P/E ratio is commonly misapplied to Balchem because it ignores the company's minimal debt and high cash generation. A more appropriate metric is EV/EBITDA, which at 22.3x still appears rich but better reflects the true cost of the business.
Balchem's P/E of 37.8x is inflated by its low leverage, as the company has almost no debt, making the equity value higher relative to earnings. In contrast, EV/EBITDA of 22.3x normalizes for capital structure and is more comparable to peers. However, even EV/EBITDA is elevated, suggesting the market is pricing in sustained growth. Investors should also consider P/FCF of 33.3x, which indicates that free cash flow is not as cheap as earnings multiples suggest. The misapplication of P/E may lead to an overestimation of value, especially if growth decelerates.