Balchem Corporation ($BCPC) Cautious Buy or Hold to $63 Confident Investor Rating: Fair
| Company name | Balchem Corporation |
| Stock ticker | BCPC |
| Live stock price | [stckqut]BCPC[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $74.17 |
| Target stock price (averages with growth) | $56.89 |
| Target stock price (averages with no growth) | $27.67 |
| Target stock price (manual assumptions) | $66.67 |
The following company description is from Google Finance: http://www.google.com/finance?q=bcpc
Balchem Corporation is engaged in the development, manufacture, distribution and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. The Company operates in three segments. The Company’s Specialty Products segment operates in industry as ARC Specialty Products. The SensoryEffects segment supplies ingredients in the food and beverage industry; providing customized solutions in powder and liquid flavor delivery systems, spray dried emulsified powder systems and cereal systems. The Animal Nutrition & Health segment provides the animal nutrition market with nutritional products derived from its microencapsulation and chelation technologies in addition to basic choline chloride. The Company operates two domestic subsidiaries which are wholly-owned, BCP Ingredients, Inc. (BCP) and Aberco, Inc. (Aberco). It also operates two wholly owned subsidiaries in Europe: Balchem BV and Balchem Italia Srl.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Balchem Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Balchem Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $56.38
- Growth: 0.14
- Current EPS (TTM): $1.69
- P/E: 33
- Future EPS Calc: $3.25
- Future Stock Price Calc: $107.38
- Target stock price: $66.67
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I hope that this makes you a Confident Investor.