Balchem Corp (BCPC) shares continue to set new 52-week highs as estimates climb. Analysts are projecting double-digit growth for the next 2 years.
Company Description
Balchem operates in 3 segments; ARC Specialty Products; Food, Pharma and Nutrition; and Animal Nutrition and Health. The specialty products included chemicals for healthcare and other industries. Its Food, Pharma and Nutrition group works on micro-encapsulated, granulated and other applications for food and pharmaceuticals. The Animal Nutrition and Health segment makes products for various animal related markets.
EPS Up 44%
Belchem released quarterly results on Oct 29th that included net earnings of $6.9 million, up $2.1 million. This led to earnings per share of 36 cents, a 44% jump since last year.
Sales dipped about 7% on a year-over-year basis, but quarterly growth was 2.5%.
Estimates Climbing
Both covering analysts submitting estimates to Zacks raised their full-year targets for 2009 and 2010. The Zacks Consensus Estimate is for this year is now $1.34, up 8 cents.
Next year’s projections average $1.53, up 6 cents. These levels represent year-over-year growth of 34% and 14%. This summer Belchem was ranked #62 on Forbes’ list of the fastest growing companies for 2009.
Industry Comparison
Belchem has great metrics, especially relative to its industry averages. The company carries virtually no debt and has an ROE of over 19%, more than twice the average. Its net profit margin is currently 11.5%, about 5 times the norm for its peers.
The Chart
BCPC continue to soar, setting new 52-week highs almost daily. Take a look at the chart below.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
