Balchem Corporation's (NASDAQ:BCPC) Stock Has Shown A Decent Performance: Have Financials A Role To Play?

Simply Wall St.11-09

Most readers would already know that Balchem's (NASDAQ:BCPC) stock increased by 7.9% over the past three months. Given that stock prices are usually aligned with a company's financial performance in...

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Given that stock prices are usually aligned with a company's financial performance in...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nasdaq-bcpc/balchem/news/balchem-corporations-nasdaqbcpc-stock-has-shown-a-decent-per-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Balchem Corporation's (NASDAQ:BCPC) Stock Has Shown A Decent Performance: Have Financials A Role To Play?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBalchem Corporation's (NASDAQ:BCPC) Stock Has Shown A Decent Performance: Have Financials A Role To Play?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 02:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nasdaq-bcpc/balchem/news/balchem-corporations-nasdaqbcpc-stock-has-shown-a-decent-per-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most readers would already know that Balchem's (NASDAQ:BCPC) stock increased by 7.9% over the past three months.   Given that stock prices are usually aligned with a company's financial performance in...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nasdaq-bcpc/balchem/news/balchem-corporations-nasdaqbcpc-stock-has-shown-a-decent-per-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4112","symbol_name":"金融交易所和数据","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nasdaq-bcpc/balchem/news/balchem-corporations-nasdaqbcpc-stock-has-shown-a-decent-per-1","article_id":"2482498706","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2024000-choice1-main-header/1585186700183"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482498706","pubTimestamp":1731090749,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Most readers would already know that Balchem's (NASDAQ:BCPC) stock increased by 7.9% over the past three months. Given...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4112":"金融交易所和数据","BCPC":"拜切","SQQQ":"纳指三倍做空ETF","NDAQ":"纳斯达克OMX交易所","QLD":"纳指两倍做多ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4109":"特种化学制品","BK4585":"ETF&股票定投概念","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","PSQ":"纳指反向ETF","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","TQQQ":"纳指三倍做多ETF","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4588":"碎股","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC",".IXIC":"NASDAQ Composite","QID":"纳指两倍做空ETF"},"translate_title":"Balchem Corporation（纳斯达克股票代码：BCPC）的股票表现良好：财务状况可以发挥作用吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BCPC":1,".IXIC":1,"NDAQ":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"Most readers would already know that Balchem's (NASDAQ:BCPC) stock increased by 7.9% over the past three months.   Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to investigate if the company's decent financials had a hand to play in the recent price move.      In this article, we decided to focus on Balchem's  ROE.    Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments.  Check out our latest analysis for Balchem  How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Balchem is:10% = US$122m ÷ US$1.2b (Based on the trailing twelve months to September 2024). The 'return' is the profit over the last twelve months.  One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.10 in profit.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  Balchem's Earnings Growth And 10% ROE   On the face of it, Balchem's ROE is not much to talk about.   However, its ROE is similar to the industry average of 10%, so we won't completely dismiss the company.   Even so, Balchem has shown a fairly decent growth in its net income which grew at a rate of 8.2%.  Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth.  For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.     Next, on comparing Balchem's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 9.7% over the last few years.   NasdaqGS:BCPC Past Earnings Growth November 8th 2024 Earnings growth is a huge factor in stock valuation.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    Is Balchem fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Balchem Efficiently Re-investing Its Profits?   Balchem has a low three-year median payout ratio of 22%, meaning that the company retains the remaining 78% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.     Moreover, Balchem is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.     Conclusion    Overall, we feel that Balchem certainly does have some positive factors to consider.      With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings.       With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Valuation is complex, but we're here to simplify it.Discover if Balchem might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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