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Balchem Corp BCPC

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Despite Disruptions From COVID-19, Balchem Reports Steady Profits in 2020; FVE Unchanged at $93

Andrew Lane Strategist

Analyst Note

| Andrew Lane |

In 2020, Balchem performed quite well given unexpected fluctuations in end market demand due to the COVID-19 pandemic. The company reported adjusted EBITDA margins just shy of 25% for the fourth consecutive year, turning in another year of healthy free cash flow. Having updated our valuation model, our fair value estimate is unchanged at $93 per share. Our narrow-moat rating also remains intact.

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Company Profile

Business Description

Balchem manufactures ingredients, nutrients, and chemicals for a wide variety of industries, including human nutrition, animal nutrition, and oil & gas. The company offers a wide variety of product lines, with some highly customized and others commodity-oriented. After the 2014 acquisition of SensoryEffects, the human nutrition and health segment now generates the largest share of companywide revenue and profits.

Contact
52 Sunrise Park Road
New Hampton, NY, 10958
T +1 845 326-5600
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 1,342