DCF Tool

BCPC

Balchem Corp. – Other Animal Food Manufacturing
Balchem Corporation develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.
Analysis Results
Intrinsic Value $126.75
Latest Price $136.65
Relative Value 8% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 115 112
2023 120 114
2024 126 116
2025 131 118
2026 138 120
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 4130 million. This corresponds to a present value of 3490 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 578 million. Adding in the terminal value gives a total present value of 4070 million.

There are presently 32.1 million outstanding shares, so the intrinsic value per share is 126.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 322,232,000
Current Cash 103,239,000
Current Liabilities 143,802,000
Current Debt 167,000
Non-Cash Working Capital (NCWC) 75,358,000
Change in NCWC -12,531,000
EBIT 127,502,000
Tax Provision 29,129,000
Depreciation and Amortization 48,879,000
Capital Expenditure -37,449,000
Unlevered Free Cash Flow 96,744,234
Current Assets 266,888,000
Current Cash 84,571,000
Current Liabilities 94,428,000
Current Debt 0
Non-Cash Working Capital (NCWC) 87,889,000
Change in NCWC -9,127,000
EBIT 111,147,000
Tax Provision 21,794,000
Depreciation and Amortization 51,281,000
Capital Expenditure -33,828,000
Unlevered Free Cash Flow 96,710,304
Current Assets 254,946,000
Current Cash 65,672,000
Current Liabilities 92,258,000
Current Debt 0
Non-Cash Working Capital (NCWC) 97,016,000
Change in NCWC 7,026,000
EBIT 102,553,000
Tax Provision 16,807,000
Depreciation and Amortization 45,862,000
Capital Expenditure -28,413,000
Unlevered Free Cash Flow 109,162,701
Current Assets 226,314,000
Current Cash 54,268,000
Current Liabilities 82,056,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,990,000
Change in NCWC 4,466,000
EBIT 107,751,000
Tax Provision 20,457,000
Depreciation and Amortization 44,666,000
Capital Expenditure -19,170,000
Unlevered Free Cash Flow 115,454,470
Current Assets 199,336,000
Current Cash 40,416,000
Current Liabilities 108,396,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) 85,524,000
Change in NCWC 1,733,000
EBIT 97,255,000
Tax Provision -1,583,000
Depreciation and Amortization 44,379,000
Capital Expenditure -27,526,000
Unlevered Free Cash Flow 115,841,000
Current Assets 188,442,000
Current Cash 38,643,000
Current Liabilities 101,008,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) 83,791,000
Change in NCWC 15,877,000
EBIT 90,838,000
Tax Provision 26,962,000
Depreciation and Amortization 46,202,000
Capital Expenditure -23,034,000
Unlevered Free Cash Flow 100,351,394
Current Assets 198,829,000
Current Cash 84,795,000
Current Liabilities 81,120,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) 67,914,000
Change in NCWC -2,579,000
EBIT 93,956,000
Tax Provision 27,341,000
Depreciation and Amortization 39,964,000
Capital Expenditure -41,300,000
Unlevered Free Cash Flow 60,535,343
Current Assets 181,302,000
Current Cash 50,287,000
Current Liabilities 95,522,000
Current Debt 35,000,000
Non-Cash Working Capital (NCWC) 70,493,000
Change in NCWC 37,219,000
EBIT 82,143,000
Tax Provision 24,226,000
Depreciation and Amortization 30,524,000
Capital Expenditure -13,199,000
Unlevered Free Cash Flow 110,860,333
Current Assets 277,774,000
Current Cash 208,747,000
Current Liabilities 35,753,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,274,000
Change in NCWC -3,664,000
EBIT 65,602,000
Tax Provision 20,944,000
Depreciation and Amortization 10,474,000
Capital Expenditure -8,417,000
Unlevered Free Cash Flow 43,119,733
Current Assets 211,909,000
Current Cash 144,737,000
Current Liabilities 30,234,000
Current Debt 0
Non-Cash Working Capital (NCWC) 36,938,000
Change in NCWC 5,505,000
EBIT 59,777,000
Tax Provision 19,839,000
Depreciation and Amortization 9,641,000
Capital Expenditure -14,004,000
Unlevered Free Cash Flow 41,102,211

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