Balchem Corp (BCPC)
Valuation Overview•Is Balchem Corp Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
High-quality fundamentals with a strong composite quality score of 79/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
BCPC demonstrates strong business quality with robust profitability and healthy margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (13.5% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 21.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $284.0M | +8.8% | +3.2% | +8.1% | +6.5% | |
| EBITDA | $71.4M | — | +10.2% | — | — | |
| Net Income | $44.6M | +20.5% | +13.7% | — | +10.0% | |
| EPS (Diluted) | $1.38 | +20.9% | +13.5% | +12.8% | +9.7% | |
| Free Cash Flow | $35.8M | +18.3% | +25.2% | +8.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 36.3% | 34.6% | 32.8% | 32.5% |
| Operating Margin | 21.1% | 19.2% | 17.8% | 17.0% |
| Net Margin | 15.1% | 13.4% | 12.7% | 12.5% |
| FCF Margin | 15.8% | 15.9% | 14.5% | 14.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $1.27 | $1.40 | +10.2% | ||
| Q2'26 | $1.33 | $1.25 | -6.0% | ||
| Q1'26 | $1.29 | $1.31 | +1.6% | ||
| Q4'25 | $1.36 | $1.35 | -0.7% | ||
| Q3'25 | $1.25 | $1.27 | +1.6% | ||
| Q2'25 | $1.25 | $1.22 | -2.4% | ||
| Q1'25 | $1.11 | $1.03 | -7.2% | ||
| Q4'24 | $1.11 | $1.13 | +1.8% |
Total return is +9.9% (1Y), lagging the benchmark by -6.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.3% | -3.9% | — |
| 1Y | +9.9% | -6.1% | +0.6% |
| 3YCAGR | +10.4% | -11.8% | +2.1% |
| 5YCAGR | +4.1% | -8.0% | +2.8% |
| 10YCAGR | +9.6% | -3.8% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Balchem Corp (BCPC) valuation, health, and returns.
Balchem Corp is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -27.3% downside from DCF intrinsic value of $121.41)
Balchem Corp has multiple valuation anchors: DCF Intrinsic Value: $121.41 | Peer Relative Fair Value: $131.92 | Wall Street Analyst Target: $215.00 (implying +27.7% upside). A convergence of these signals offers higher conviction.
Balchem Corp displays good financial health with a composite quality score of 79/100, supported by a Altman Z-Score of 9.1 (safe zone), Piotroski F-Score of 9/9, Return on Invested Capital (ROIC) of 12.2%.
Balchem Corp pays a 0.5% dividend yield, covered by a 18% payout ratio with 16 years of growth, supplemented by a 2.0% buyback yield.
Balchem Corp's current growth trajectory is Accelerating. The company achieved +8.8% 1Y revenue growth and +20.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.2%.
Wall Street consensus is Buy based on 10 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a +27.7% change from current levels.
Investment risks for Balchem Corp include: -14.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.13x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.