The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
In contrast to all that, many investors prefer to focus on companies like Balchem (NASDAQ:BCPC), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Balchem with the means to add long-term value to shareholders.
See our latest analysis for Balchem
How Fast Is Balchem Growing?
Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. Over the last three years, Balchem has grown EPS by 12% per year. That's a good rate of growth, if it can be sustained.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Balchem achieved similar EBIT margins to last year, revenue grew by a solid 18% to US$877m. That's encouraging news for the company!
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
NasdaqGS:BCPC Earnings and Revenue History September 25th 2022
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Balchem's forecast profits?
Are Balchem Insiders Aligned With All Shareholders?
It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Balchem shares worth a considerable sum. Indeed, they hold US$30m worth of its stock. That's a lot of money, and no small incentive to work hard. While their ownership only accounts for 0.8%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.
It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Our quick analysis into CEO remuneration would seem to indicate they are. For companies with market capitalisations between US$2.0b and US$6.4b, like Balchem, the median CEO pay is around US$6.9m.
Balchem offered total compensation worth US$5.8m to its CEO in the year to December 2021. That is actually below the median for CEO's of similarly sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally.
Does Balchem Deserve A Spot On Your Watchlist?
As previously touched on, Balchem is a growing business, which is encouraging. The growth of EPS may be the eye-catching headline for Balchem, but there's more to bring joy for shareholders. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. You still need to take note of risks, for example - Balchem has 1 warning sign we think you should be aware of.
Although Balchem certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
投資一家能夠扭轉命運的公司所帶來的興奮,對一些投機者來説是一個巨大的吸引力,因此,即使是沒有收入、沒有利潤、業績不佳的公司,也能設法找到投資者。但現實是,當一家公司每年虧損時,在足夠長的時間內,投資者通常會承擔他們的損失份額。一家虧損的公司還沒有用盈利來證明自己,最終外部資本的流入可能會枯竭。
與此形成鮮明對比的是,許多投資者更傾向於關注像巴爾切姆(納斯達克:bcpc),不僅有收入,更有利潤。即使這家公司得到了市場的公平估值,投資者也會同意,產生持續的利潤將繼續為Balchem提供為股東增加長期價值的手段。
查看我們對Balchem的最新分析
Balchem的增長速度有多快?
一般來説,經歷每股收益(EPS)增長的公司應該會看到類似的股價趨勢。這意味着,大多數成功的長期投資者認為,每股收益的增長是一個真正的積極因素。在過去的三年中,Balchem的每股收益以每年12%的速度增長。這是一個很好的增長率,如果它能夠持續的話。
仔細考慮收入增長和息税前利潤(EBIT)利潤率有助於瞭解最近利潤增長的可持續性。雖然我們注意到Balchem實現了與去年類似的EBIT利潤率,但收入穩步增長18%,達到8.77億美元。這對公司來説是個鼓舞人心的消息!
下面的圖表顯示了該公司的利潤和收入是如何隨着時間的推移而變化的。要查看實際數字,請點擊圖表。
NasdaqGS:BCPC收益和收入歷史2022年9月25日
在投資中,就像在生活中一樣,未來比過去更重要。那麼為什麼不來看看這個免費Balchem的交互式可視化預測利潤?
Balchem內部人士是否與所有股東一致?
公司領導人以股東的最佳利益行事是必要的,因此,內部投資總是對市場起到安撫作用。內部人士持有Balchem價值相當大的股票,股東們會對此感到高興。事實上,他們持有該公司價值3000萬美元的股票。這是一筆不小的錢,也是努力工作的不小激勵。雖然他們的持股只佔0.8%,但這仍然是一個相當大的風險,以鼓勵企業保持將為股東帶來價值的戰略。
看到內部人士投資於這項業務意義重大,但股東們可能會想,薪酬政策是否符合他們的最佳利益。我們對CEO薪酬的快速分析似乎表明,情況的確如此。對於市值在20億美元至64億美元之間的公司,如Balchem,首席執行官的薪酬中值約為690萬美元。
在截至2021年12月的一年裏,Balchem向其首席執行官提供了價值580萬美元的總薪酬。這實際上低於類似規模公司CEO的中位數。CEO薪酬水平不是投資者最重要的衡量標準,但當薪酬適中時,這確實有助於加強CEO與普通股東之間的一致性。更廣泛地説,這也可能是良好治理的標誌。
Balchem應該被列入你的觀察名單嗎?
正如前面提到的,Balchem是一項不斷增長的業務,這是令人鼓舞的。對於Balchem來説,每股收益的增長可能是引人注目的頭條新聞,但還有更多的東西可以為股東帶來joy。有了有意義的內部人持股水平和合理的CEO薪酬,理性的人可能會得出結論,這是一隻值得關注的股票。例如,你仍然需要注意風險-Balchem有1個警告標誌我們認為你應該意識到。
儘管Balchem看起來肯定不錯,但如果內部人士買入股票,它可能會吸引更多投資者。如果你想看到內幕交易,那麼這本書免費內部人士正在收購的成長型公司名單,可能正是你正在尋找的。
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。