Is Balchem Stock a Good Investment?

Balchem Investment Advice

BCPC

To provide specific investment advice or recommendations on Balchem stock, we recommend investors consider the following general factors when evaluating Balchem. This will help you to make an informed decision on whether to include Balchem in one of your diversified portfolios:

Examine Balchem's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Balchem's leadership team and their track record. Good management can help Balchem navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Balchem's business and its evolving consumer preferences.
Compare Balchem's performance and market position to its competitors. Analyze how Balchem is positioned in terms of product offerings, innovation, and market share.
Check if Balchem pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Balchem's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Balchem stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Balchem is a good investment.

Sell

Buy

Cautious Hold

Macroaxis provides advice on Balchem to complement and cross-verify current analyst consensus on Balchem. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Balchem is not overpriced, please confirm all Balchem fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that Balchem has a price to earning of 42.37 X, we suggest you to validate Balchem market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Balchem Stock

Researching Balchem's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are held by institutions such as insurance companies. The book value of Balchem was currently reported as 33.27. The company last dividend was issued on the 26th of December 2023. Balchem had 3:2 split on the 21st of January 2010.

To determine if Balchem is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Balchem's research are outlined below:

	Balchem generated a negative expected return over the last 90 days
	Balchem has a strong financial position based on the latest SEC filings
	Over 91.0% of the company shares are held by institutions such as insurance companies
	Latest headline from seekingalpha.com: Warning BCPC is at high risk of performing badly

Balchem Quarterly Cash And Short Term Investments

60.35 Million

Balchem uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Balchem. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Balchem's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	23rd of February 2024 Upcoming Quarterly Report	View
	26th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	23rd of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Balchem's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Balchem's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2006-05-01	2006-03-31	0.1	0.11	0.01	10
2005-02-15	2004-12-31	0.09	0.08	-0.01	11
2003-10-28	2003-09-30	0.05	0.04	-0.01	20
2003-02-12	2002-12-31	0.08	0.07	-0.01	12
2001-08-08	2001-06-30	0.04	0.05	0.01	25
2007-08-01	2007-06-30	0.13	0.15	0.02	15
2010-02-25	2009-12-31	0.2	0.24	0.04	20
2012-02-27	2011-12-31	0.36	0.31	-0.05	13

Balchem Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Balchem target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Balchem's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Buy

Most Balchem analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Balchem stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Balchem, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Balchem Target Price Projection

Balchem's current and average target prices are 154.70 and 157.00, respectively. The current price of Balchem is the price at which Balchem is currently trading. On the other hand, Balchem's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Balchem Market Quote on 4th of June 2024

Low Price	154.7	Odds
High Price	154.7	Odds

154.7 Target Price

Analyst Consensus On Balchem Target Price

Low Estimate	142.87	Odds
High Estimate	174.27	Odds

157.0

Historical

Lowest Forecast 142.87

Target Price 157.0

Highest Forecast 174.27

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Balchem and the information provided on this page.

Balchem Analyst Ratings

Balchem's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Balchem stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Balchem's financials, market performance, and future outlook by experienced professionals. Balchem's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Balchem's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Balchem is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Balchem backward and forwards among themselves. Balchem's institutional investor refers to the entity that pools money to purchase Balchem's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Ameriprise Financial Inc	2023-12-31	450.4 K
Schroder Investment Management Group	2024-03-31	413.1 K
Jpmorgan Chase & Co	2023-12-31	404.7 K
Northern Trust Corp	2023-12-31	399.8 K
Norges Bank	2023-12-31	351.1 K
Charles Schwab Investment Management Inc	2024-03-31	341.5 K
Stephens Inv Mgmt Group Llc	2024-03-31	326.7 K
Gw&k Investment Management, Llc	2023-12-31	305.3 K
Bank Of New York Mellon Corp	2023-12-31	289.5 K
Blackrock Inc	2023-12-31	5 M
Vanguard Group Inc	2024-03-31	3.9 M

Note, although Balchem's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Balchem's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.98 B.

Market Cap

4.51 Billion

Balchem's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.17	0.12
Return On Capital Employed	0.12	0.21
Return On Assets	0.07	0.11
Return On Equity	0.10	0.17

The company has Profit Margin (PM) of 0.12 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.18 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.18.

Determining Balchem's profitability involves analyzing its financial statements and using various financial metrics to determine if Balchem is a good buy. For example, gross profit margin measures Balchem's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Balchem's profitability and make more informed investment decisions.

Balchem's Earnings Breakdown by Geography

The data published in Balchem's official financial statements usually reflect Balchem's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Balchem. For example, before you start analyzing numbers published by Balchem accountants, it's critical to develop an understanding of what Balchem's liquidity, profitability, and earnings quality are in the context of the Chemicals space in which it operates.

Please note, the presentation of Balchem's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Balchem's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Balchem's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Balchem. Please utilize our Beneish M Score to check the likelihood of Balchem's management manipulating its earnings.

Evaluate Balchem's management efficiency

Balchem has return on total asset (ROA) of 0.0637 % which means that it generated a profit of $0.0637 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1119 %, meaning that it created $0.1119 on every $100 dollars invested by stockholders. Balchem's management efficiency ratios could be used to measure how well Balchem manages its routine affairs as well as how well it operates its assets and liabilities. At present, Balchem's Return On Assets are projected to slightly decrease based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.17, whereas Return On Tangible Assets are forecasted to decline to 0.12. At present, Balchem's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 15.7 M, whereas Net Tangible Assets are forecasted to decline to about 129 M.

	Last Reported	Projected for Next Year
Book Value Per Share	32.83	34.47
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	2.61	2.74
Enterprise Value Over EBITDA	21.68	22.77
Price Book Value Ratio	4.53	2.96
Enterprise Value Multiple	21.68	22.77
Price Fair Value	4.53	2.96
Enterprise Value	4.5 B	4.8 B

The analysis of Balchem's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Balchem's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Balchem Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Dividend Yield

0.0051

Forward Dividend Yield

0.0051

Forward Dividend Rate

0.79

Beta

0.715

Basic technical analysis of Balchem Stock

As of the 4th of June, Balchem shows the Risk Adjusted Performance of 0.0058, downside deviation of 1.16, and Mean Deviation of 0.9196. Balchem technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Balchem, which can be compared to its peers. Please confirm Balchem treynor ratio, and the relationship between the variance and potential upside to decide if Balchem is priced correctly, providing market reflects its regular price of 154.7 per share. Given that Balchem has jensen alpha of (0.02), we suggest you to validate Balchem's prevailing market performance to make sure the company can sustain itself at a future point.

Balchem's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Balchem insiders, such as employees or executives, is commonly permitted as long as it does not rely on Balchem's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Balchem insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		William Backus over a month ago Disposition of tradable shares by William Backus of Balchem at 155.6849 subject to Rule 16b-3
		Tignor Michael Brent over two months ago Disposition of 4200 shares by Tignor Michael Brent of Balchem at 85.4 subject to Rule 16b-3
		Matthew Wineinger over three months ago Disposition of 1333 shares by Matthew Wineinger of Balchem at 156.8851 subject to Rule 16b-3
		William Backus over three months ago Disposition of 4319 shares by William Backus of Balchem at 155.6573 subject to Rule 16b-3
		William Backus over three months ago Disposition of 3700 shares by William Backus of Balchem at 74.57 subject to Rule 16b-3
		Tignor Michael Brent over six months ago Acquisition by Tignor Michael Brent of 2300 shares of Balchem subject to Rule 16b-3
		Wedral Elaine R over a year ago Sale by Wedral Elaine R of 1854 shares of Balchem

Understand Balchem's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Balchem's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0058
	Market Risk Adjusted Performance	(0.02)
	Mean Deviation	0.9196
	Semi Deviation	1.15
	Downside Deviation	1.16
	Coefficient Of Variation	56773.91
	Standard Deviation	1.17
	Variance	1.38
	Information Ratio	(0.03)
	Jensen Alpha	(0.02)
	Total Risk Alpha	(0.06)
	Sortino Ratio	(0.03)
	Treynor Ratio	(0.03)
	Maximum Drawdown	5.07
	Value At Risk	(1.59)
	Potential Upside	1.73
	Downside Variance	1.35
	Semi Variance	1.31
	Expected Short fall	(0.98)
	Skewness	(0.10)
	Kurtosis	0.1179

	Risk Adjusted Performance	0.0058
	Market Risk Adjusted Performance	(0.02)
	Mean Deviation	0.9196
	Semi Deviation	1.15
	Downside Deviation	1.16
	Coefficient Of Variation	56773.91
	Standard Deviation	1.17
	Variance	1.38
	Information Ratio	(0.03)
	Jensen Alpha	(0.02)
	Total Risk Alpha	(0.06)
	Sortino Ratio	(0.03)
	Treynor Ratio	(0.03)
	Maximum Drawdown	5.07
	Value At Risk	(1.59)
	Potential Upside	1.73
	Downside Variance	1.35
	Semi Variance	1.31
	Expected Short fall	(0.98)
	Skewness	(0.10)
	Kurtosis	0.1179

Consider Balchem's intraday indicators

Balchem intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Balchem stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Daily Balance Of Power	9.2 T
	Rate Of Daily Change	1.01
	Day Median Price	154.7
	Day Typical Price	154.7
	Price Action Indicator	0.55
	Period Momentum Indicator	1.1

Balchem Corporate Filings

F4	13th of May 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	3rd of May 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	26th of April 2024 Other Reports	View Verify
13A	9th of February 2024 An amended filing to the original Schedule 13G	View Verify

Balchem time-series forecasting models is one of many Balchem's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Balchem's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Balchem Stock media impact

Far too much social signal, news, headlines, and media speculation about Balchem that are available to investors today. That information is available publicly through Balchem media outlets and privately through word of mouth or via Balchem internal channels. However, regardless of the origin, that massive amount of Balchem data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Balchem news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Balchem relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Balchem's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Balchem alpha.

Balchem Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Balchem can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Balchem Historical Investor Sentiment

Investor biases related to Balchem's public news can be used to forecast risks associated with an investment in Balchem. The trend in average sentiment can be used to explain how an investor holding Balchem can time the market purely based on public headlines and social activities around Balchem. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Balchem's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Balchem and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Balchem news discussions. The higher the estimate score, the more favorable the investor's outlook on Balchem.

Balchem Corporate Management

Hatsuki Miyata	General VP	Profile
Frederic Boned	Senior Health	Profile
CPA CPA	Chief Officer	Profile
Brent Tignor	Senior Officer	Profile
Carl Bengtsson	CFO Treasurer	Profile
Job Gunsteren	Senior Products	Profile

Additional Information and Resources on Investing in Balchem Stock

When determining whether Balchem offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Balchem's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Balchem Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Balchem Stock: