Here's Why Balchem (NASDAQ:BCPC) Can Manage Its Debt Responsibly
Here's Why Balchem (NASDAQ:BCPC) Can Manage Its Debt Responsibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Balchem Corporation (NASDAQ:BCPC) makes use of debt. But is this debt a concern to shareholders?
David Iben说得好:“波动性并非我们关心的风险。我们所关心的是避免资本的永久损失。”因此,聪明的投资者认为,在评估公司风险时,通常涉及破产的债务是一个非常重要的因素。正如许多其他公司一样,Balchem Corporation (纳斯达克:BCPC)也使用债务来进行业务。但这种债务对股东是一个问题吗?
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
债务是帮助企业增长的工具,但如果企业无法偿还其贷款人,则企业存在于他们的怜悯中。在最坏的情况下,如果企业无法支付其债权人,可能会破产。然而,更常见的(但仍然痛苦的)情况是,以低价发行新的股权资本,从而永久稀释股东的权益。当然,债务的好处是它经常代表廉价的资本,特别是当它取代具有以高回报率再投资能力的公司的股权稀释时。当我们考虑一家公司使用债务时,我们首先看现金和债务。
What Is Balchem's Debt?
Balchem的债务是多少?
The image below, which you can click on for greater detail, shows that Balchem had debt of US$301.6m at the end of March 2024, a reduction from US$431.6m over a year. However, it also had US$60.3m in cash, and so its net debt is US$241.2m.
下面这张图片(您可以点击图片以获取更多信息)显示,Balchem在2024年3月底欠债301.6亿美元,相较于一年前的431.6亿美元有所减少。 然而,它也拥有6030万美元的现金,因此其净债务为2.412亿美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240526/0-af7adb1e85513e8e29c96d1ed9edef99-0-f74fa2abe29077f57c3b6ee9b0bcb391.png/big)
A Look At Balchem's Liabilities
我们可以从最近的资产负债表上看到,Balchem有1.244亿美元的到期负债,以及385.5亿美元的长期负债。 抵消这些义务,它拥有6030万美元的现金,以及139.9亿美元的应于12个月内到期的应收款项。 因此,它的负债总额比其现金和短期应收账款的组合多309.7亿美元。
We can see from the most recent balance sheet that Balchem had liabilities of US$124.4m falling due within a year, and liabilities of US$385.5m due beyond that. Offsetting these obligations, it had cash of US$60.3m as well as receivables valued at US$139.9m due within 12 months. So its liabilities total US$309.7m more than the combination of its cash and short-term receivables.
当然,Balchem的市值为49.6亿美元,因此这些负债可能是可以管理的。 然而,我们认为值得留意其资产负债表的强度,因为它可能随时间而变化。
Of course, Balchem has a market capitalization of US$4.96b, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.
随着净债务仅占税息折旧前利润(EBITDA)的1.1倍,Balchem在负债方面可以说是相当保守的。它拥有7.3倍的利息支付能力,这是足够的。 我们也热情地注意到,Balchem去年的EBIT增长了14%,这使其债务负荷更容易处理。 当您分析债务时,资产负债表显然是要关注的领域。但最重要的还是未来的收益,这将决定Balchem维持健康资产负债表的能力。 因此,如果您关注未来,可以查看这份显示分析师利润预测的免费报告。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
为了衡量公司债务相对于其收益的大小,我们计算其净债务除以利息、税、折旧和摊销前收益(EBITDA)以及其税前收益与利息支出(其利息覆盖率)的比率。这样,我们既考虑了债务的绝对量,也考虑了所支付的利率。
With net debt sitting at just 1.1 times EBITDA, Balchem is arguably pretty conservatively geared. And it boasts interest cover of 7.3 times, which is more than adequate. And we also note warmly that Balchem grew its EBIT by 14% last year, making its debt load easier to handle. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Balchem's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
最后,公司只能用实打实的现金,而不是会计利润来偿还债务。因此,检查有多少EBIT由自由现金流支持是值得的。 在最近的三年中,Balchem录得了自由现金流价值,相当于其EBIT的79%,这大约是正常的,因为自由现金流不包括利息和税收。 这种自由现金流使公司有能力在适当的时候偿还债务。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So it's worth checking how much of that EBIT is backed by free cash flow. Over the most recent three years, Balchem recorded free cash flow worth 79% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
Balchem的EBIT转为自由现金流,表明它正如Cristiano Ronaldo在14岁以下的门将面前进球一样容易处理其债务。它的EBIT增长率也很不错。总的来说,Balchem似乎相当合理地使用债务,这得到了我们的认可。尽管债务带来风险,但明智使用时,它也可以带来更高的股本回报率。毫无疑问,我们可以从资产负债表上了解有关债务的大部分信息。 然而,不是所有的投资风险都存在于资产负债表内。我们已经确定了Balchem的1个警告信号,并且了解它们应该是您投资过程的一部分。
Our View
我们的观点
Balchem's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And its EBIT growth rate is good too. Zooming out, Balchem seems to use debt quite reasonably; and that gets the nod from us. While debt does bring risk, when used wisely it can also bring a higher return on equity. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. We've identified 1 warning sign with Balchem , and understanding them should be part of your investment process.
Balchem的EBIT转为自由现金流,表明它正如Cristiano Ronaldo在14岁以下的门将面前进球一样容易处理其债务。它的EBIT增长率也很不错。总的来说,Balchem似乎相当合理地使用债务,这得到了我们的认可。尽管债务带来风险,但明智使用时,它也可以带来更高的股本回报率。毫无疑问,我们可以从资产负债表上了解有关债务的大部分信息。 然而,不是所有的投资风险都存在于资产负债表内。我们已经确定了Balchem的1个警告信号,并且了解它们应该是您投资过程的一部分。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然,如果您是那种喜欢购买没有负债负担的股票的投资者,则今天就可以发现我们的独家净现金增长股清单。
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