I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.
| Company name | Balchem Corporation |
| Stock ticker | BCPC |
| Live stock price | [stckqut]BCPC[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $83.55 |
| Target stock price (averages with growth) | $97.67 |
| Target stock price (averages with no growth) | $63.3 |
| Target stock price (manual assumptions) | $78.96 |
The following company description is from Google Finance: http://www.google.com/finance?q=bcpc
Balchem Corporation is engaged in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. The Company operates in three segments: Specialty Products, Food, Pharma & Nutrition and Animal Nutrition & Health. The Food, Pharma & Nutrition (FPN) segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients. The Company’s Specialty Products segment operates in industry as ARC Specialty Products. Ethylene oxide, at the 100% level, is sold as a sterilant gas, primarily for use in the health care industry. The Company’s Animal Nutrition & Health segment provides the animal nutrition and health markets with products derived from the Company’s microencapsulation, chelation, and basic choline chloride technologies.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Balchem Corporation.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $59.2
Growth: 0.17
Current EPS (TTM): $1.45
P/E: 40
Future EPS Calc: $3.17
Future Stock Price Calc: $127.16
Target stock price: $78.95
I hope that this makes you a better investor. [/s2If]