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BGM Group Ltd. (BGM)

Undervalued
HealthcareDrug Manufacturers - Specialty & GenericChina

Fundamental

32

Price

$0.25

Market Cap

$100M

Part 1 · What the company is worth

Overview

BGM Group Ltd., through its subsidiaries, operates as a pharmaceutical and chemical company in China. The company operates through Diversified Pharmaceutical and Allied Products; AI Solution; and Insurance Business segments. It offers oxytetracycline products, including Qilian Shan oxytetracycline tablets to prevent and treat a range of diseases in chickens, turkeys, cattle, swine, and human; and Qilian Shan oxytetracycline active pharmaceutical ingredients, which are used by pharmaceutical companies in the manufacturing of medications that use oxytetracycline as an active ingredient. The company also provides licorice products, such as Gan Di Xin, a antitussive and expectorant medicine made from raw licorice materials; Qilian Shan licorice extract, an ingredient for pharmaceutical companies to manufacture traditional licorice tablets; and Qilian Shan licorice liquid extract, an ingredient for medical preparation companies to produce compound licorice oral solutions. In addition, it offers traditional Chinese medicine derivatives products comprising Ahan antibacterial paste that is used to treat refractory chronic skin diseases; heparin products, including heparin sodium preparation, an ingredient for pharmaceutical companies to produce medications used in treating cardiovascular diseases, cerebrovascular diseases, and hemodialysis; and sausage casings, such as Zhu Xiaochang sausage casings for culinary purposes. Further, the company provides Fertilizer products comprising Xiongguan organic fertilizers to improve crop yield, increase soil's chemical properties, and reduce soil compaction; and Xiongguan organic-inorganic compound fertilizers for plant growth. Additionally, it focuses on the AI-driven commercialization of DuXiaoBao platform to provide comprehensive and professional AI solutions and intelligent robot services for insurance companies, insurance brokers, and consumers. BGM Group Ltd. is based in Chengdu, China.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

Jinhe Biotechnology Co., Ltd. (金河生物科技股份有限公司)002688.SZ

Both are Chinese producers of tetracycline-class antibiotic active ingredients and premixes sold to the same livestock, poultry and feed customers at home and for export.

Ningxia Tairui Pharmaceutical Co., Ltd. (宁夏泰瑞制药股份有限公司)Not tracked

A non-listed Chinese maker of non-sterile veterinary antibiotic active ingredients and feed additives, selling into the same animal-health raw-material market as BGM's oxytetracycline business.

Wuhan Hvsen Biotechnology Co., Ltd. (武汉回盛生物科技股份有限公司)300871.SZ

Makes veterinary antibiotic active ingredients and the finished animal medicines built on them, competing for the large Chinese pig, poultry and aquaculture producers that also buy BGM's products.

China Animal Husbandry Industry Co., Ltd. (中牧实业股份有限公司)600195.SS

A long-established state-backed supplier of veterinary drugs and veterinary active ingredients to Chinese farms, overlapping with BGM on the animal-medicine side of its pharmaceutical segment.

Balance Sheet & Liquidity

Revenue

$39M

Trailing 12 months to the last reported quarter — estimated from per-share metrics

Net Income

$-25M

Trailing 12 months to the last reported quarter — estimated from per-share metrics

Free Cash Flow

$-5M

Total Equity

$391M

Total Liabilities

$42M

Current Ratio

1.24

Interest Coverage

-

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$0.49

Current Price

$0.25

Margin of Safety

+49.0%

Fair Value Range

$0.47 - $0.52

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:Not enough data to compute it
Discounted cash flow (DCF):$0.49
Earnings multiple (P/E):Not enough data to compute it
Graham growth formula:Not enough data to compute it
Earnings power value (EPV):Not enough data to compute it
Justified P/B:Not enough data to compute it
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$0.77

Valuation Metrics

P/E Ratio

-

ROE

-5.1%

P/B Ratio

0.13

P/FCF

-

Gross Margin

16.6%

ROIC

-2.5%

Profitability Radar

Value Creation (Economic Moat)

ROIC

-2.5%

WACC

15.0%

ROIC − WACC

-17.5 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (4)

  • P/B Ratio 0.13
  • Debt/Equity ratio
  • Current Ratio
  • DCF valuation (Undervalued)

Failed (11)

  • EPS shows upward trend
  • Price CAGR -54.62%
  • ROIC -2.5%
  • Gross Margin 16.6%
  • Operating Margin -33.2%
  • Positive Free Cash Flow
  • ROE -7.0%
  • Revenue Growth 5Y -5.4%
  • Share Dilution 1435.7%
  • Net Margin Trend -52.6% vs -5.7%
  • Piotroski F-Score 3/9

Unavailable (12)

  • P/FCF NaN
  • Dividend Payout NaN%
  • CapEx intensity
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • Analyst Consensus (Finnhub)
  • Earnings Surprise (Finnhub)
  • PEG Ratio (need PE > 0 and growth > 0)
  • Earnings Quality (OCF/Net Income)

Piotroski F-Score

3/9

Serious financial concerns

score
criteria

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

1435.7%

Issuing new shares, diluting ownership

Institutional Holdings

No institutional filings reported for this company.

Governance

Executive Team

NameTitleAge
Ms. Huandi ZhaoCo-Chief Executive Officer & Director40
Ms. Li HongCo-Chief Executive Officer-
Ms. Yaxuan ZhaiChief Financial Officer30

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for BGM, sourced from Markets Gazette.

No recent news for BGM.