Balchem Stock Story

BCPC

Stock

USD 126.37 0.79 0.63%

Macroaxis Story

As many rational traders are trying to avoid basic materials space, it makes sense to go over Balchem Cp a little further and understand how it stands against Hawkins and other similar entities. We are going to analyze some of the competitive aspects of both Balchem and Hawkins.

Published over three months ago

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Balchem Cp Current Investor Sentiment

Investor biases related to Balchem Cp's public news can be used to forecast risks associated with investment in Balchem. The trend in average sentiment can be used to explain how an investor holding Balchem can time the market purely based on public headlines and social activities around Balchem Cp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Balchem Cp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Balchem Cp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Balchem Cp's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Balchem Cp.

Balchem Cp Maximum Pain Price across 2022-07-15 Option Contracts

Balchem Cp's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Balchem Cp close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Balchem Cp's options.

Will Hawkins (NASDAQ:HWKN) and Balchem Cp (NASDAQ:BCPC) deliver in March?

By analyzing existing basic indicators between Balchem Cp and Hawkins, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Hawkins with a short position in Balchem Cp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Balchem Cp has an asset utilization ratio of 86.99 percent. This suggests that the company is making $0.87 for each dollar of assets. An increasing asset utilization means that Balchem Cp is more efficient with each dollar of assets it utilizes for everyday operations.

Will Hawkins (NASDAQ:HWKN) and Balchem Cp (NASDAQ:BCPC) deliver in March?

How important is Balchem Cp's Liquidity

Balchem Cp financial leverage refers to using borrowed capital as a funding source to finance Balchem Cp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Balchem Cp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Balchem Cp's total debt and its cash.

How does Balchem utilize its cash?

To perform a cash flow analysis of Balchem Cp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Balchem Cp is receiving and how much cash it distributes out in a given period. The Balchem Cp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Balchem Cp Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 160.51 Million

Balchem Cp exotic insider transaction detected

Legal trades by Balchem Cp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Balchem insider trading alert for general transaction of employee stock option (right to buy) by Tignor Michael Bent, Chief Human Resources Officer, on 17th of February 2022. This event was filed by Balchem Corp with SEC on 2022-02-17. Initial filing of beneficial ownership - SEC Form 3 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after Balchem Financials

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Balchem Cp revenue. Based on the latest financial disclosure, Balchem Cp reported 766.6 M of revenue. This is 90.25% lower than that of the Basic Materials sector and 82.77% lower than that of the Specialty Chemicals industry. The revenue for all United States stocks is 91.87% higher than that of Balchem Cp. As for Hawkins we see revenue of 670.42 M, which is 84.93% lower than that of the Specialty Chemicals

Sector

4.5 B

BCPC	766.6 Million	13.02
Sector	4.45 Billion	75.59
HWKN	670.42 Million	11.39

Will Balchem continue to rise?

The maximum drawdown is down to 6.84 as of today. Balchem Cp exhibits very low volatility with skewness of 0.14 and kurtosis of -0.17. However, we advise investors to further study Balchem Cp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Balchem Cp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Balchem Cp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Balchem Cp Implied Volatility

Balchem Cp's implied volatility exposes the market's sentiment of Balchem Cp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Balchem Cp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Balchem Cp stock will not fluctuate a lot when Balchem Cp's options are near their expiration.

The Current Takeaway on Balchem Cp Investment

Whereas few other entities under the specialty chemicals industry are still a bit expensive, Balchem Cp may offer a potential longer-term growth to investors. To conclude, as of the 18th of February 2022, we believe that Balchem Cp is currently undervalued with very small odds of financial turmoil in the next two years. Our overall 90 days buy vs. sell advice on the company is Strong Hold.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Balchem Cp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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