Bon Natural Life Limited (BON) AI Stock Analysis
BON AI stock analysis summary
AI ResearchBon Natural Life Limited (BON) manufactures and distributes functional active ingredients derived from natural herbs for personal care and supplement markets. In FY2025, the company posted revenue of $18.7M with net income of -$2.0M as operating margin contracted to -8.7%. Over the trailing twelve months, revenue reached $18.8M with an operating margin of -82.2%.
- Market cap
- $9.3M
- Revenue (TTM)
- $18.8M
- P/E
- — fwd 2.3x
- 1Y return
- -46.9% S&P 500 16.8%
- Avg. target
- $77.50 6722.2% vs last close
Bull case
- Bon Natural Life holds $9.2M in cash and short-term investments alongside a current ratio of 1.83 as of June 30, 2026.
- The stock trades at an EV to EBITDA multiple of 2.9x, which is lower than the US-listed Basic Materials peer median of 10.5x.
- In the latest quarter ending June 30, 2026, the company posted quarterly revenue growth of 1.9% year-over-year while beating EPS estimates in 3 of the last 4 quarters.
Bear case
- Annual revenue fell 21.7% in FY2025 to $18.7M, down from $29.9M in FY2022.
- The company generated negative free cash flow of -$4.2M in FY2025 and sustained a trailing twelve-month profit margin of -60.4%.
- Shareholder equity has faced substantial dilution, with the share count increasing by 700.1% over a 5-year period.
What Bon Natural Life does
Bon Natural Life Limited, established in 2006 and headquartered in Grand Cayman, Cayman Islands, specializes in the research, development, manufacturing, and global distribution of functional active ingredients derived from natural herbs. The company serves clients in the People's Republic of China and internationally. Its portfolio includes personal care ingredients, such as plant-extracted fragrance compounds for perfume and fragrance makers, alongside natural health supplements including powder drinks and bioactive food additives. These products are supplied across functional foods, personal care, cosmetics, and pharmaceutical sectors.
Growth and profitability
Revenue increased from $25.5M in FY2021 to $29.9M in FY2022 before falling to $29.5M in FY2023, $23.8M in FY2024, and $18.7M in FY2025, representing a 5-year revenue CAGR of 0.5%. Gross margin narrowed from 27.9% in FY2021 and 31.5% in FY2022 to 20.8% in FY2025. Operating margin shifted from positive 21.2% in FY2021 to -8.7% in FY2025, while net income shifted from $4.6M to -$2.0M over the same period. For the trailing twelve months ending June 30, 2026, revenue stood at $18.8M with a profit margin of -60.4% and an operating margin of -82.2%. In the latest quarter, quarterly revenue grew 1.9% year-over-year, while quarterly earnings fell 41.0%.
Balance sheet and cash flow
As of June 30, 2026, Bon Natural Life held $9.2M in cash and short-term investments against total debt of $12.3M, resulting in net debt of $3.1M. Shareholders' equity was $50.8M against total assets of $80.2M. The company maintained a current ratio of 1.83 and a debt-to-equity ratio of 0.24. In FY2025, operating cash flow was $141,115 and capital expenditures were $4.4M, resulting in free cash flow of -$4.2M. Over the trailing five years, the company's share count increased 700.1%.
Valuation and performance
At a closing price of $1.14 on October 16, 2026, Bon Natural Life had a market cap of $9.3M and an enterprise value of $18.3M. The stock traded at a forward P/E of 2.3x, below the 13.4x median of its US-listed Basic Materials peers. Its EV to EBITDA multiple was 2.9x compared to the peer median of 10.5x, and its price-to-sales was 0.5x versus the peer median of 1.8x. Over the past year, the stock fell 46.9%, while the S&P 500 gained 16.8%. Over five years, the stock fell 99.9% compared to an 83.0% gain for the benchmark.
What analysts expect
Analysts tracked for Bon Natural Life have set a mean price target of $77.50, representing an upside comparison of 6722.2% relative to the last close of $1.14 on October 16, 2026. In terms of earnings performance against consensus, the company achieved 3 EPS beats over the last 4 quarters. No additional analyst ratings, consensus recommendation counts, or upcoming earnings dates are provided in the available reporting.
Key risks and what to watch
- Operating margin deteriorated to -82.2% over the trailing twelve months, reflecting sustained operational losses.
- The company carries total debt of $12.3M, exceeding its cash balance of $9.2M and resulting in net debt of $3.1M.
- Shares fell 46.9% over the past year and 99.9% over five years, trading at $1.14, which is 14.3% below its 200-day moving average.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BON AI stock analysis
This page is an AI-written research summary of Bon Natural Life Limited (BON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BON income statement, BON balance sheet, BON key metrics, BON chart. See the BON stock overview for the latest quote and news.
BON AI stock analysis FAQ
What does Bon Natural Life Limited do?
Bon Natural Life researches, manufactures, and distributes functional active ingredients derived from natural herbs. It provides fragrance compounds and health supplement ingredients to food, cosmetic, and pharmaceutical customers globally.
What are the latest revenue and profit figures for BON?
In FY2025, Bon Natural Life generated revenue of $18.7M and net income of -$2.0M. Over the trailing twelve months ending June 30, 2026, revenue was $18.8M with an operating margin of -82.2%.
Does Bon Natural Life pay a dividend?
No dividend payments are reported for Bon Natural Life.
What is the valuation of BON compared to its industry peers?
Bon Natural Life trades at an EV to EBITDA multiple of 2.9x and a price-to-sales multiple of 0.5x. Both ratios stand below the US-listed Basic Materials peer medians of 10.5x and 1.8x, respectively.