Bon Natural Life Limited (BON) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on BON

Recent developments have negatively impacted Bon Natural Life Limited's performance. The company received a Nasdaq delisting notification due to its failure to meet the minimum bid price requirement, with its closing bid price below $1.00 per share for 30 consecutive business days. Additionally, the company's securities had a closing bid of $0.10 or less for the last ten consecutive trading days, subjecting it to delisting provisions. This development has likely contributed to the company's recent struggles.

1.c. Company Highlights

Last Price	1.79
Change Percentage	-0.56%
Open	1.82
Previous Close	1.8
Market Cap ( Millions)	11
Volume	15830
Year High	73.75
Year Low	1.14
M A 50	1.92
M A 200	3.88

FCF Yield	-93.07%
Dividend Yield	0.00%
ROE	1.19%
Debt / Equity	16.37%
Net Debt / EBIDTA	-5.31%
Price To Book	0.01
Price Earnings Ratio	0.94
Price To FCF	-1.07
Price To sales	0.5
EV / EBITDA	4.3

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

BON Announced Next-Gen of Tea Pigment Digestive Health Products and Cooperation Agreement of US$26 Million with Beijing Huahai Keyuan

Nov -25

Source: prnewswire.com

BON Announces $18 Million Cooperation Agreement for Innovative Second-Generation Apple Series Health Products

Sep -09

Source: prnewswire.com

BON Announces Identification of Promising Weight-Managing Compounds from Tea via AI-Powered New Drug R&D Platform

Sep -02

Source: prnewswire.com

BON Announces Reciept of Nasdaq Compliance Letter

Aug -05

Source: prnewswire.com

BON Launches AI-Powered New Drug Research and Development

Jul -30

Source: prnewswire.com

BON Announces $22 Million Distribution Agreement for Weight Loss Products with Beijing Huahai Keyuan Technology Co., Ltd

Jul -21

Source: prnewswire.com

BON Announces Nasdaq Compliance

Jul -14

Source: prnewswire.com

Bon Announces Breakthrough Order for $16 Million Gut-Health Products

Jul -02

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.99%)

6. Segments

Fragrance Compounds

Expected Growth: 8.9%

Bon Natural Life Limited's 8.9% growth in Fragrance Compounds is driven by increasing demand for natural and organic personal care products, rising consumer preference for unique and exotic scents, and expansion into new markets, particularly in Asia. Additionally, the company's focus on sustainable and eco-friendly production processes has attracted environmentally conscious consumers, contributing to its growth.

Health Supplements (Solid Drinks)

Expected Growth: 8.9%

Bon Natural Life Limited's Health Supplements (Solid Drinks) segment growth of 8.9% is driven by increasing health awareness, rising demand for natural and organic products, expanding distribution channels, and effective marketing strategies. Additionally, growing popularity of e-commerce platforms and increasing disposable income in emerging markets also contribute to the segment's growth.

Bioactive Food Ingredients

Expected Growth: 9.27%

Bon Natural Life Limited's Bioactive Food Ingredients segment growth of 9.27% is driven by increasing consumer demand for healthy and functional foods, rising awareness of preventive healthcare, and growing adoption of natural ingredients in food products. Additionally, expanding distribution channels, strategic partnerships, and investments in R&D are contributing to the segment's growth.

7. Detailed Products

Natural Skincare Products

A range of skincare products made from natural ingredients, free from harsh chemicals and toxins, suitable for all skin types.

Organic Food Supplements

A selection of organic food supplements made from natural ingredients, designed to support overall health and wellbeing.

Eco-Friendly Home Care Products

A range of eco-friendly home care products made from natural ingredients, biodegradable and free from harsh chemicals.

Natural Haircare Products

A range of natural haircare products made from natural ingredients, free from harsh chemicals and toxins, suitable for all hair types.

Wellness and Self-Care Products

A selection of wellness and self-care products designed to promote relaxation, stress relief and overall wellbeing.

8. Bon Natural Life Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bon Natural Life Limited has a moderate threat of substitutes due to the availability of alternative natural products in the market.

Bargaining Power Of Customers

Bon Natural Life Limited has a high bargaining power of customers due to the presence of a large number of customers with significant purchasing power.

Bargaining Power Of Suppliers

Bon Natural Life Limited has a low bargaining power of suppliers due to the availability of multiple suppliers in the market.

Threat Of New Entrants

Bon Natural Life Limited has a moderate threat of new entrants due to the moderate barriers to entry in the natural products market.

Intensity Of Rivalry

Bon Natural Life Limited operates in a highly competitive market with a high intensity of rivalry among existing players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.59%
Debt Cost	3.95%
Equity Weight	89.41%
Equity Cost	-1.57%
WACC	-0.98%
Leverage	11.85%

11. Quality Control: Bon Natural Life Limited passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Maple Leaf Foods

A-Score: 6.4/10

Value: 6.5

Growth: 5.0

Quality: 4.7

Yield: 6.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Jamieson Wellness

A-Score: 5.9/10

Value: 3.8

Growth: 7.4

Quality: 5.8

Yield: 4.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

B&G Foods

A-Score: 4.8/10

Value: 9.6

Growth: 2.6

Quality: 2.8

Yield: 10.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

Mama's Creations

A-Score: 4.6/10

Value: 0.6

Growth: 8.8

Quality: 5.9

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

Laird Superfood

A-Score: 4.3/10

Value: 7.4

Growth: 6.9

Quality: 4.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

Bon Natural Life

A-Score: 3.6/10

Value: 9.6

Growth: 0.8

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.16%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-0.98%

Bon Natural Life Limited - KYG144921056

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BON

1.c. Company Highlights

Better Quality

More Volatile

Cheaper

Average Yield

Earnings Miss

Revenues Miss

Average Quality

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.99%)

6. Segments

Fragrance Compounds

Expected Growth: 8.9%

Health Supplements (Solid Drinks)

Expected Growth: 8.9%

Bioactive Food Ingredients

Expected Growth: 9.27%

7. Detailed Products

Natural Skincare Products

Organic Food Supplements

Eco-Friendly Home Care Products

Natural Haircare Products

Wellness and Self-Care Products

8. Bon Natural Life Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bon Natural Life Limited passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.79$

Current Price

1.79$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA