Bon Natural Life (BON) AI Stock Analysis

• Market Cap: $11.25M
• Dividend Yield: N/A
• Average Volume (3M): 5.62M
• Price to Earnings (P/E): 0.6
• Beta (1Y): 2.16
• Revenue Growth: -19.23%
• EPS Growth: -97.89%
• Country: US
• Employees: 97
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.10
• Shares Outstanding: 4,946,466
• 10 Day Avg. Volume: 2,919,346
• 30 Day Avg. Volume: 5,618,656
• PEG Ratio: 0.39
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.70
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 1.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $1.50 ▼(-1.96%Downside)

Bon Natural Life's stock score is primarily driven by its challenging financial performance, with declining revenues and profitability. The bearish technical indicators further contribute to the low score. Although the stock appears undervalued, this is overshadowed by significant operational and liquidity concerns. Investors should be cautious and look for improvements in revenue generation and cash flow before considering an investment.

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 through the sale of its natural and health-focused products. The company's primary revenue streams include direct sales to consumers, wholesale distribution to retailers, and strategic partnerships with other companies in the health and wellness industry. By leveraging its expertise in natural ingredients and proprietary formulations, BON is able to offer unique products that appeal to health-conscious consumers. Additionally, the company may engage in partnerships or collaborations that enhance its product offerings and expand its market reach, thereby contributing to its financial performance.

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
	EBIT
1.87M	5.92M	6.54M	5.40M	3.47M
	EBITDA
2.30M	6.98M	8.33M	6.13M	3.70M
	Net Income Common Stockholders
398.17K	4.60M	6.24M	4.59M	3.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.47K	112.82K	840.86K	3.61M	53.11K
	Total Assets
61.77M	46.56M	37.26M	36.41M	25.20M
	Total Debt
7.30M	4.20M	5.41M	3.06M	5.72M
	Net Debt
7.22M	4.09M	4.57M	1.16M	5.67M
	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: Negative
• Last Price: 1.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BON, the sentiment is Negative. The current price of 1.53 is below the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.57, and below the 200-day MA of 26.40, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 7.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BON.

Bon Natural Life Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	77 Outperform	$266.79M	26.94	6.42%	―	2.00%	-37.09%
MAMA	72 Outperform	$298.25M	71.31	18.79%	―	17.04%	-23.81%
WYHG	70 Outperform	$47.65M	4.45	9.79%	―	―	―
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
BON	52 Neutral	$11.25M	0.65	1.05%	―	-19.23%	-97.89%
LSF	49 Neutral	$68.70M	―	-7.38%	―	25.04%	87.51%
NAII	45 Neutral	$21.13M	―	-10.25%	―	-1.16%	-146.23%