BCPC
Balchem Corp
Industrial/Transportation
07/13/2015
Presented
| Date | 07/08/2015 |
| Price | $53.49 |
| Market Cap | $1.66B |
| Ent Value | $1.93B |
| P/E Ratio | 28.5x |
| Book Value | $13.24 |
| Div Yield | 0.56% |
| Shares O/S | 31.09M |
| Ave Daily Vol | 168,841 |
| Short Int | 4.85% |
Current
| Price | $172.01 |
| Market Cap | $5.58B |
| Balchem Corp. engages in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the U.S. and internationally. The company operates its business through the following segments: Specialty Products; Food, Pharma & Nutrition; and Animal Nutrition & Health. The Specialty Products segment provides specialty-packaged chemicals for use in healthcare and other industries. The Food, Pharma & Nutrition segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing, mixing, and packaging applications and shelf-life. The Animal Nutrition & Health segment provides the animal nutrition and health markets with products derived from its microencapsulation, chelation, and basic choline chloride technologies. In this segment, the company markets REASHURE Choline, an encapsulated choline product that improves health and production in transition and early lactating dairy cows. It also markets NITROSHURETM, an encapsulated urea supplement for lactating dairy cows, which allows for greater flexibility in feed rations for dairy nutritionists and producers, and NIASHURETM, a microencapsulated niacin product, to help fight heat stress in animals. In addition, the company manufactures, sells and distributes chelated mineral supplements for use in animal feed, utilizing its proprietary chelation technology for enhanced nutrient absorption for various species of production and companion animals. Balchem was founded in January 1967 and is headquartered in New Hampton, NY. |
Publicly traded companies mentioned herein: Balchem Corp (BCPC)
Highlights
At first glance, Balchem (BCPC) appears to have no connection to the energy sector. In its own words, the company “engages in the development, manufacture, and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally”. However, the presenter is short the stock at present levels (~$54), and cited a favorable risk/ reward based on the 20% of BCPC’s business that is exposed to energy (choline is used for clay stabilization in fracking) and the potential for growth to return to more normalized levels (closer to GDP growth) as its energy business slows and previous M&A activity is lapped year-over-year.
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