Bon Natural Life (BON) AI Stock Analysis

• Market Cap: $9.71M
• Dividend Yield: N/A
• Average Volume (3M): 156.89K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 2.10
• Revenue Growth: -19.23%
• EPS Growth: -97.89%
• Country: US
• Employees: 97
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Packaged Foods
• EPS (TTM): 0.10
• Shares Outstanding: 4,946,466
• 10 Day Avg. Volume: 64,436
• 30 Day Avg. Volume: 156,892
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 7.15
• 1Y Price Target: $1.50
• Price Target Upside: 7.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $1.50 ▲(7.91% Upside)

Bon Natural Life's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. While the stock appears undervalued based on its P/E ratio, operational and liquidity issues, along with negative market momentum, weigh heavily on its attractiveness.

Bon Natural Life Business Overview & Revenue Model

Company Description

Bon Natural Life Limited, together with its subsidiaries, engages in the research and development, manufacture, and sale of functional active ingredients extracted from natural herb plants in the People's Republic of China and internationally. The company provides personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers; natural health supplements comprising powder drinks and bioactive food ingredient products primarily used as food additives; and nutritional supplements. Its products are principally used by manufacturer customers in the functional food, personal care, cosmetic, and pharmaceutical industries. The company was founded in 2006 and is headquartered in Grand Cayman, the Cayman Islands.

How the Company Makes Money

Bon Natural Life generates revenue primarily through the sale of its dietary supplements and personal care products. The company utilizes a multi-channel distribution strategy, selling directly to consumers via its online platform as well as through retail partnerships with health food stores and wellness-focused retailers. Key revenue streams include product sales, subscription services for regular customers, and bulk orders from health professionals and wellness practitioners. Additionally, BON may engage in partnerships with other brands and influencers in the wellness space to enhance visibility and reach, further contributing to its earnings.

Bon Natural Life Financial Statement Overview

Summary

Bon Natural Life exhibits a challenging financial landscape with declining revenues and profitability, coupled with negative cash flows. While the company maintains a strong equity position, operational and liquidity issues could pose risks to future financial health. The company needs to address revenue generation and cash flow efficiency to improve its financial standing.

Income Statement

The income statement shows a declining trend in revenue with a significant drop in net income over the past year. The gross profit margin for the latest annual period is approximately 29.8%, which is decent but overshadowed by the steep decline in both EBIT and net profit margins, indicating pressure on profitability. The revenue growth rate is negative, highlighting a challenging environment for revenue generation.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of approximately 0.17, indicating low leverage. The return on equity (ROE) is around 0.9%, suggesting limited profitability relative to equity. The equity ratio stands at about 71.1%, showcasing strong financial stability, but the declining asset base and increasing liabilities are potential concerns.

Cash Flow

The cash flow statement is concerning, with negative operating and free cash flows, indicating strained liquidity. The operating cash flow to net income ratio is negative, pointing to operational challenges in generating cash relative to reported income. The free cash flow growth rate is also negative, highlighting deteriorating cash flow conditions.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	23.84M	29.52M	29.91M	25.49M	18.22M
Gross Profit	7.11M	8.84M	9.42M	7.11M	5.20M
EBITDA	2.30M	6.98M	8.33M	6.13M	3.70M
Net Income	398.17K	4.60M	6.24M	4.59M	3.03M
Balance Sheet
Total Assets	61.77M	46.56M	37.26M	36.41M	25.20M
Cash, Cash Equivalents and Short-Term Investments	80.47K	112.82K	840.86K	3.61M	53.11K
Total Debt	7.30M	4.20M	5.41M	3.06M	5.72M
Total Liabilities	17.42M	10.57M	7.16M	9.88M	14.18M
Stockholders Equity	43.91M	35.48M	29.56M	26.01M	10.52M
Cash Flow
Free Cash Flow	-7.73M	-1.38M	-4.92M	-700.78K	-1.69M
Operating Cash Flow	-7.72M	-651.91K	-187.12K	4.05M	2.64M
Investing Cash Flow	-15.73K	-1.19M	-3.06M	-7.44M	-3.00M
Financing Cash Flow	8.76M	1.16M	2.26M	5.35M	112.49K

Bon Natural Life Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BON, the sentiment is Positive. The current price of 1.39 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.38, and below the 200-day MA of 16.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BON.

Bon Natural Life Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$290.99M	22.12	9.15%	―	4.33%	-6.33%
MAMA	76 Outperform	$317.81M	75.99	18.79%	―	17.04%	-23.81%
WYHG	72 Outperform	$41.91M	5.08	9.79%	―	―	―
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
BON	53 Neutral	$9.71M	0.59	1.05%	―	-19.23%	-97.89%
NAII	53 Neutral	$22.68M	―	-10.25%	―	-1.16%	-146.23%
LSF	42 Neutral	$61.96M	―	-8.34%	―	22.79%	74.00%