Summary
- Balchem Corporation is a relatively unheard of company that continues to grow year after year.
- The company operates in a small segment of the market that is not focused on by many investors.
- The company has continued to grow its revenue and see its stock outperform yet remains off the radar, making it an attractive investment opportunity.
Balchem corporation (NASDAQ:BCPC) is a 3.2 billion dollar market cap specialty products maker. The company is headquartered in New Hampton, NY. I am relatively aware of the company and its operations as I happen to live nearby. This little bit of insight has allowed me to benefit from being an investor in the company at a time when it was much smaller. I have continued to focus on the company and have its stock on my watchlist but it has traded at quite a premium for some time. During the last sell-off, I was able to add a position near the 52 week lows. I decided that in the long term, the company has proven its ability to grow its top line revenue, profits, and portfolio, enough for me to believe in the future as well. The company has grown revenues from $255 million in 2010 to $643 million in 2018 and 2019. The segments it operates in are niche in a sense and I believe it leaves the company plenty of room to grow and expand its horizons in the future. With any meaningful pullback in the stock, I would once again add to my position for the long term.
Overview
Balchem operates with roughly 1400 employees and has 21 manufacturing sites throughout the world. The company operates primarily in three segments. The first and largest segment is "Human Health and Nutrition", making up roughly 54% of sales. The second largest segment is the "Animal Health and Nutrition" segment, making up 28% of sales. The third segment is the "Specialty Products" division, making up around 14% of sales and the remainder is some other products that help provide around 4% of revenue.
Below we can identify how each segment serves a different market and the solutions they provide.
