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Balchem: Good Quarterly Performance Priced In

Aug. 02, 2021 6:15 AM ETBalchem Corporation (BCPC)1 Comment


  • Balchem's 2Q 2021 revenue and earnings set new historical highs and beat market expectations, which led to its share price trading at an all-time peak post-results.
  • But Balchem's earnings growth was not as good as its top-line expansion, due to raw material cost inflation and higher expenses relating to a flash flood.
  • The market values Balchem at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 37.3 times and 33.4 times, respectively.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

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Elevator Pitch

I continue to rate Balchem Corporation's (NASDAQ:BCPC) shares as Neutral.

Balchem's stock price increased by +8% from $124.21 as of April 23, 2021, to $134.89 as of July 30, 2021, after my previous update

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This article was written by

The Value Pendulum profile picture

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

BM Cashflow Detective profile picture
Balchem is still good value based on its 5y PEG ratio of 1.52.

Overvalued but not fully priced in growth. A remarkable combination.

I'm long $BCPC

Normally you shouldn't run after the money, you have to go towards it. But in this case it runs after you.
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