Is BALCHEM CORP (BCPC) Halal?

NASDAQ Basic Materials United States $5.4B
✓ HALAL
Confidence: 95/100
BALCHEM CORP (BCPC) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.2% against the AAOIFI threshold of 30%, BALCHEM CORP comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Specialty Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.2%
/ 30%
1.3%
/ 30%
2.5%
/ 30%
0.01%
/ 5%
✓ HALAL
DJIM 3.2%
/ 33%
1.3%
/ 33%
2.5%
/ 33%
0.01%
/ 5%
✓ HALAL
MSCI 10.7%
/ 33%
4.4%
/ 33%
8.5%
/ 33%
0.01%
/ 5%
✓ HALAL
S&P 3.2%
/ 33%
1.3%
/ 33%
2.5%
/ 33%
0.01%
/ 5%
✓ HALAL
FTSE 10.7%
/ 33%
4.4%
/ 33%
8.5%
/ 50%
0.01%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
35.1
Forward: 27.5
EPS
$4.76
Dividend Yield
58.0%
Payout: 20.2%
P/B Ratio
4.3
EV/EBITDA
21.4
EV: $5.5B
Revenue
$1.0B
Growth: 9.8%
Beta
0.9
Average volatility
Current Ratio
2.1

Profitability

Gross Margin 35.7%
Operating Margin 19.8%
Net Margin 14.9%
Return on Equity (ROE) 12.9%
Return on Assets (ROA) 8.0%

Cash Flow & Balance Sheet

Operating Cash Flow$217M
Free Cash Flow$173M
Total Debt$181M
Debt-to-Equity14.4
Current Ratio2.1
Total Assets$1.7B

Price & Trading

Last Close$166.39
50-Day MA$171.97
200-Day MA$159.75
Avg Volume172K
Beta0.9
52-Week Range
$139.17
$183.90

About BALCHEM CORP (BCPC)

CEO
Mr. Theodore Lee Harris
Employees
1,352
Sector
Basic Materials
Industry
Specialty Chemicals
Country
United States
Exchange
NASDAQ
Market Cap
$5.4B
Currency
USD

Balchem Corporation develops, manufactures, and distributes specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets worldwide. It operates through three segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment offers specialty vitamin K2; microencapsulation solutions for various applications; and human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. The Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production and delivering nutrient supplements in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; methylsulfonylmethane; and choline chloride, a nutrient for monogastric animal health. The Specialty Products segment distributes ethylene oxide and ammonia primarily for use in the health care industry; and single use canisters for sterilizing re-usable devices. This segment also markets and sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. It sells its products through sales force, independent distributors, and sales agents. The company was incorporated in 1967 and is headquartered in Montvale, New Jersey.

Purification Calculator

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Frequently Asked Questions

Is BALCHEM CORP (BCPC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), BALCHEM CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is BALCHEM CORP's debt ratio?

BALCHEM CORP's debt ratio is 3.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.7%.

Does BALCHEM CORP require dividend purification?

Yes, BALCHEM CORP has an impermissible income ratio of 0.01%, which means 0.01% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are BALCHEM CORP's key financial metrics?

BALCHEM CORP has a market capitalization of $5.4B, trailing P/E ratio of 35.1, and revenue of $1.0B. The company maintains a gross margin of 35.7% and a net margin of 14.9%. Return on equity stands at 12.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.