BGM Group Ltd. (BGM)
UndervaluedFundamental
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
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.
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.
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.
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
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
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
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Ms. Huandi Zhao | Co-Chief Executive Officer & Director | 40 |
| Ms. Li Hong | Co-Chief Executive Officer | - |
| Ms. Yaxuan Zhai | Chief Financial Officer | 30 |
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.