Friday, October 14, 2011

Balchem (BCPC) 2011 Review

Balchem Corp. (BCPC) provides specialty ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries including (1) specialty gases used to sterilize medical devices and to produce specialty herbicides, fertilizers and pharmaceuticals, (2) solutions for microencapsulation, granulation and agglomeration for applications in food, pharmaceutical and nutritional ingredients and (3) nutritional products for animals.

BCPC has grown profits and dividends at a 20%+ rate over the last five years earning a 16-20% return on equity.

The company has been able to weather the recent economic down turn and should continue to grow as the rising standard of living throughout the third and emerging worlds lead to improved diet and healthcare.

BCPC is rated A by Value Line, has a 1% debt to equity ratio and its stock yields .4%.

Statistical Summary

Stock Yield Dividend Growth Rate Payout Ratio # Increases Since 2009
BCPC 0.9% 15% 9% 4
IND 1.7 7 31 NA

Debt/Equity ROE EPS Down Since 2001 Net Margin Value Line Rating
BCPC 1% 18% 0 23% A
IND 45 16 NA 7 NA


Note: BCPC stock made great progress off its March 2009 low, quickly surpassing the down trend off its September 2008 high (red line) and the November 2008 trading high (green line). The stock is in a long term uptrend (straight blue lines). Until recently, it was in an intermediate term up trend, but broke that trend and re-set to an intermediate term trading range (purple lines). The wiggly blue lines are Bollinger Bands. The Aggressive Growth Portfolio owns a 50% position in BCPC by virtue of having Sold Half earlier this year. Shares would be Added at $26; the lower boundary of its Sell Half Range is $47.