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1. Company Snapshot

1.a. Company Description

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States and internationally.It operates through three segments: Human Nutrition & Health, Animal Nutrition & 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 also offers 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; and choline chloride, a nutrient for monogastric animal health.


The Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide 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.The company sells its products through sales force, independent distributors, and sales agents.


Balchem Corporation was incorporated in 1967 and is headquartered in New Hampton, New York.

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1.b. Last Insights on BCPC

Balchem Corporation's recent performance was driven by its strong quarterly results, despite missing earnings estimates. The company reported a 25% increase in revenue year-over-year, driven by its health and nutrition segment. Additionally, Balchem's Board of Directors declared a dividend of $0.87 per share, indicating a commitment to returning value to shareholders. Furthermore, the company's announcement of a quarterly conference call for its fourth-quarter and full-year 2024 results suggests a transparent approach to sharing its financial performance with investors.

1.c. Company Highlights

2. Balchem Corporation Delivers Record Quarterly Results

Balchem Corporation reported record quarterly consolidated revenue of $268 million for Q3 2025, an 11.5% increase from the prior year. The company delivered record quarterly GAAP earnings from operations of $55 million, up 13.7% from the prior year, and consolidated net income of $40 million, up 19.1%. Adjusted EBITDA was a record $71 million, up 11% from the prior year, with an adjusted EBITDA margin rate of 26.7%. The actual EPS came out at $1.23, slightly lower than the estimated $1.36. The company's strong financial performance was driven by its Human Nutrition and Health segment, which generated record sales of $174 million, up 14.3% from the prior year.

Publication Date: Oct -22

📋 Highlights
  • Record Revenue & EBITDA Growth:: Q3 2025 revenue hits $268M (+11.5 YoY), with adjusted EBITDA of $71M (+11%) and a 26.7% margin.
  • Human Nutrition Segment Surge:: Sales reach $174M (+14.3 YoY), driven by minerals, vitamins, and "Better For You" food trends.
  • 25 Consecutive EBITDA Growth Quarters:: Company achieves 25 straight quarters of YoY adjusted EBITDA growth, with net income up 19.1% to $40M.
  • EU Antidumping Benefits:: Preliminary duties on China-origin choline chloride create a level playing field, supporting market expansion for the company.
  • Capacity Expansion:: Orange County microencapsulation facility to double capacity by 2027, enabling double-digit growth in encapsulation products.

Segment-wise Performance

The Human Nutrition and Health segment's growth was driven by strong demand for minerals, nutrients, and vitamins, and food ingredients and solutions. The Animal Nutrition and Health segment delivered quarterly sales of $56 million, up 6.6% from the prior year, driven by higher sales in ruminant and monogastric businesses. The Specialty Products segment delivered quarterly sales of $36 million, up 7.5% from the prior year, driven by higher sales in Performance Gases and Plant Nutrition businesses.

Growth Outlook and Trends

The company remains confident in its long-term growth outlook, citing its strong market positions, value-added portfolio of products, and accelerating "Better For You" trends in health and nutrition markets. The company's food ingredients business is experiencing growth driven by trends such as "better for you" products, high-protein foods, and healthy eating. The nutrient minerals and nutrients segment has seen phenomenal growth, driven by markets such as choline, K2, MSM, and magnesium.

Valuation and Future Prospects

With a P/E Ratio of 34.39 and an EV/EBITDA of 20.24, the company's valuation appears to be premium. However, the company's strong track record of growth, with 25 consecutive quarters of quarterly year-over-year growth in adjusted EBITDA, justifies the premium. Analysts estimate next year's revenue growth at 6.3%, which is relatively modest compared to the company's historical performance. The company's debt repayment pace is expected to continue, but it may be impacted by the timing and pace of M&A activity.

Key Highlights and Expectations

The European Union's preliminary imposition of antidumping duties on China-origin choline chloride is expected to create a level playing field and benefit the company. The company's Orange County microencapsulation manufacturing facility is expected to be completed in early 2027, with new product production starting in 2027. The facility will have twice the capacity of the old plant and will allow the company's encapsulation business to continue growing at double-digit rates.

3. NewsRoom

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Balchem Corporation to Present at Baird's 55th Annual Global Industrial Conference on November 12, 2025

Oct -30

Source: globenewswire.com

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Balchem: Bullish On Q3 Outperformance And Favorable Outlook (Upgrade)

Oct -23

Source: seekingalpha.com

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Balchem Corporation (BCPC) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

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Balchem (BCPC) Q3 Earnings Lag Estimates (Revised)

Oct -21

Source: zacks.com

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Why Balchem Stock Jumped Today

Oct -21

Source: fool.com

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Blachem (BCPC) Q3 Earnings Lag Estimates

Oct -21

Source: zacks.com

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Blachem (BCPC) Moves to Buy: Rationale Behind the Upgrade

Sep -24

Source: zacks.com

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Scoring Big With Fans: Balchem Spotlights the Power of Vitamin K2 at FC Bayern Women's Season Opener

Sep -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Human Nutrition and Health

Expected Growth: 4%

Balchem's Human Nutrition and Health segment growth is driven by increasing demand for omega-3 fatty acids, vitamins, and minerals in food and pharmaceutical applications. Rising health awareness, growing popularity of functional foods, and expanding use of nutraceuticals in animal feed also contribute to this growth.

Animal Nutrition and Health

Expected Growth: 3%

Balchem's Animal Nutrition and Health segment growth is driven by increasing demand for sustainable and healthy animal feed, rising adoption of precision livestock farming, and growing awareness of animal welfare. Additionally, the company's strategic acquisitions and investments in research and development have expanded its product offerings and enhanced its market position.

Specialty Products

Expected Growth: 6%

Balchem Corporation's Specialty Products segment growth is driven by increasing demand for value-added ingredients in food and beverage, pet food, and pharmaceutical industries. Rising health consciousness and pet humanization trends fuel growth. Additionally, strategic acquisitions and investments in R&D enhance product offerings and expand market reach, contributing to the 6% growth rate.

Other and Unallocated

Expected Growth: 2%

Balchem Corporation's Other and Unallocated segment growth is driven by increasing demand for specialty products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in emerging technologies, such as plant-based and clean label products, contributes to its growth momentum.

7. Detailed Products

Reashure

A line of choline-based ingredients for human nutrition and animal health

Nitroshure

A line of nitrate-based ingredients for animal nutrition

AminoShure

A line of amino acid-based ingredients for animal nutrition

Choline Chloride

A feed-grade choline chloride for animal nutrition

Selenium Supplements

A line of selenium-based ingredients for animal nutrition

Ethoxquin

A feed preservative for animal nutrition

Custom Premixes

Customized blends of vitamins, minerals, and other nutrients for animal nutrition

8. Balchem Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Balchem Corporation is medium due to the availability of alternative products in the market, but the company's strong brand presence and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for Balchem Corporation is low due to the company's diversified customer base and lack of concentration of customers, which reduces their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Balchem Corporation is medium due to the presence of multiple suppliers, but the company's large scale of operations and long-term contracts with suppliers reduce their bargaining power.

Threat Of New Entrants

The threat of new entrants for Balchem Corporation is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Balchem Corporation is high due to the presence of several established players in the industry, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.94%
Debt Cost 7.52%
Equity Weight 77.06%
Equity Cost 7.52%
WACC 7.52%
Leverage 29.77%

11. Quality Control: Balchem Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Element Solutions

A-Score: 5.0/10

Value: 3.5

Growth: 6.3

Quality: 6.2

Yield: 2.0

Momentum: 5.0

Volatility: 6.7

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Balchem

A-Score: 4.7/10

Value: 1.9

Growth: 5.6

Quality: 7.5

Yield: 1.0

Momentum: 2.5

Volatility: 9.7

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H.B. Fuller

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Value: 5.0

Growth: 4.8

Quality: 4.1

Yield: 3.0

Momentum: 2.0

Volatility: 7.0

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Westlake

A-Score: 4.0/10

Value: 7.8

Growth: 4.0

Quality: 3.5

Yield: 4.0

Momentum: 0.0

Volatility: 5.0

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Minerals Technologies

A-Score: 4.0/10

Value: 6.6

Growth: 4.3

Quality: 3.2

Yield: 1.0

Momentum: 2.0

Volatility: 7.0

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Olin

A-Score: 3.7/10

Value: 5.5

Growth: 4.4

Quality: 2.0

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

150.5$

Current Price

150.5$

Potential

-0.00%

Expected Cash-Flows