BalchemBCPC +1.27%94 Return-on-Tangible-Equity is 54.17% as of Mar. 2026, which is 33% below its 10-year median of 81.20. GuruFocus rates BCPC with a GF Score™ of 94/100 and a GF Value™ of $177.10 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,572 Chemicals companies, Balchem ranks better than 96.95% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Balchem's annualized net income for the quarter that ended in Mar. 2026 was $161 Mil. Balchem's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $297 Mil. Therefore, Balchem's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 54.17%.
The historical rank and industry rank for Balchem's Return-on-Tangible-Equity or its related term are showing as below:
BCPC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 44.13 Med: 81.2 Max: 551.75
Current: 54.96
During the past 13 years, Balchem's highest Return-on-Tangible-Equity was 551.75%. The lowest was 44.13%. And the median was 81.20%.
BCPC's Return-on-Tangible-Equity is ranked better than 96.95% of 1572
companies
in the Chemicals industry
Industry Median: 5.69
vs BCPC: 54.96
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Balchem Return-on-Tangible-Equity Related Terms
Balchem Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Balchem's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BCPC vs SXT, PRM, CBT: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Balchem's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Balchem Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Balchem's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Balchem's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 54.17% mean?
Balchem (BCPC) has a Return-on-Tangible-Equity of 54.17% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Balchem and its competitors. This is 33% below median its historical median of 81.20. Over the past decade, Balchem's Return-on-Tangible-Equity has ranged from 44.13 to 551.75. According to the industry distribution chart, Balchem ranks #48 out of 1572 companies in the Chemicals industry, placing it in the top 3.1%.
Is Balchem's Return-on-Tangible-Equity too high?
Balchem's current Return-on-Tangible-Equity of 54.17% is 33% below median its 10-year median of 81.20. Over the past 10 years, this metric has ranged from a low of 44.13 to a high of 551.75. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Balchem's value of 54.17% is 852% above this industry median. Based on the distribution chart, Balchem ranks #48 out of 1572 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Balchem has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Balchem's Return-on-Tangible-Equity compare to SXT and PRM?
According to the Chemicals industry distribution chart, Balchem ranks #48 out of 1572 companies for Return-on-Tangible-Equity. This places Balchem in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.69. Balchem's value of 54.17% is 852% above this benchmark. Historically, Balchem's own Return-on-Tangible-Equity has ranged from 44.13 to 551.75 over the past decade. While the company's 10-year median is 81.20 vs. the industry median of 5.69, Balchem has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,572 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Balchem's current Return-on-Tangible-Equity of 54.17% is 852% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Balchem and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balchem's current Return-on-Tangible-Equity is 54.17%, which is 33% below median its own 10-year median of 81.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balchem stock overvalued right now?
Based on GuruFocus' analysis, Balchem (BCPC) is currently considered Fairly Valued. The stock's GF Value™ is $177.10, compared to a current price of $171.20 — trading 3.3% below its estimated fair value. The current Return-on-Tangible-Equity is 54.17%, which is 33% below median its 10-year median of 81.20 and 852% above the Chemicals industry median of 5.69. Balchem's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Balchem (BCPC), the current Return-on-Tangible-Equity is 54.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Balchem (BCPC) Overvalued in 2026?
Based on GuruFocus' analysis, Balchem stock appears to be undervalued.
The current stock price of $171.20 is trading 3.3% below its estimated GF Value™ of $177.10.
GuruFocus considers Balchem to be Fairly Valued.
Key valuation signals for BCPC:
Return-on-Tangible-Equity: 54.17% (33% below median its 10-year median of 81.20)
GF Value™: $177.10 vs. price of $171.20 (3.3% below fair value)
Industry Position: 852% above the Chemicals median (#48 of 1572)
No single metric tells the full story. See the BCPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balchem Corp is engaged in the development, manufacture, and marketing of specialty performance ingredients and products for various industries. The company's reportable segments are; Human Nutrition and Health, which generates maximum revenue, and provides human-grade choline nutrients and mineral amino acid chelated products through this segment for nutrition and health applications; Animal Nutrition and Health, which provides nutritional products derived from its microencapsulation and chelation technologies in addition to the essential nutrient choline chloride; and the Specialty Products segment includes re-packaging and distributing several performance gases and chemicals. Geographically, the company derives its key revenue from the United States and the rest from foreign countries.
94GF Score
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