Quality Investor

Balchem Corporation

Rank #327Hypergrowth

BCPC · Nasdaq · Basic Materials

Balchem Corporation (BCPC) — Rank #327 by gross profitability (GP/assets 0.22) · ROE 11.9% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000009326 · all metrics point-in-time as of the filing date.

About

Balchem Corporation develops, manufactures, and distributes specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets worldwide.

Show more

It operates through three segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment offers specialty vitamin K2; microencapsulation solutions for various applications; and human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. The Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production and delivering nutrient supplements in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; methylsulfonylmethane; and choline chloride, a nutrient for monogastric animal health. The Specialty Products segment distributes ethylene oxide and ammonia primarily for use in the health care industry; and single use canisters for sterilizing re-usable devices. This segment also markets and sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. It sells its products through sales force, independent distributors, and sales agents.

The company was incorporated in 1967 and is headquartered in Montvale, New Jersey.

Industry
Specialty Chemicals
Sector
Basic Materials
State
MD
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

BCPC+20.0% · +3.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$5.24B

P/E (annual)

34.6

P/S (annual)

5.1

P/B

4.0

P/OCF (annual)

24.2

Shareholder Yield

0.2%

Employees

1,379

Industry

Specialty Chemicals

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
11.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.30
Current ratio
2.66×
Net cash
$63.17M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.7%

Growth

2/2 pass
Revenue growth
47.4%
Piotroski F-Score
N/A
Share dilution
0.3%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

13.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.3% — per-share value needs a total required return of 14.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.9%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.0%

r = 10% (base)

13.7%

r = 12%

17.7%

Net debt / market cap: -1.2%

Base FCF: $173.1M3Y mean FCF: $80.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

47.2xExpensive
27.2xmed 35.8x49.8x

P / S

Price / revenue per share

5.7xExpensive
3.4xmed 4.6x5.7x

P / B

Price / book value per share

5.2xExpensive
4.0xmed 4.5x5.3x

P / GP

Price / gross profit per share

18.6xExpensive
11.9xmed 14.7x18.6x

P / FCF

Price / free cash flow per share

52.1xExpensive
25.5xmed 32.5x52.1x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

45th pctl of 34 SIC 28 peers

Return on equity

11.9%

Gross margin

35.7%

33rd pctl of 34 SIC 28 peers

Revenue growth (YoY)

47.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018201920202021
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

13.7%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.30

87th pctl of 31 SIC 28 peers (best = lowest)

Current ratio

2.66×

61st pctl of 34 SIC 28 peers

Quick ratio

1.46×

Net cash

$63.17M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$173.07M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.12

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.7%

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
18.3%5/5 Strong
FCF coverage
6.12×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.30 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20162021
Value
Capital Return