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Bon Natural LifeBON +0.18%42 Gross Margin % is 18.38% as of Sep. 2025, which is 37% below its 10-year median of 29.19. GuruFocus rates BON with a GF Score™ of 42/100 and a GF Value™ of $0.76 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,559 Chemicals companies, Bon Natural Life ranks worse than 57.79% on this metric.
Bon Natural Life Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.
The historical rank and industry rank for Bon Natural Life's Gross Margin % or its related term are showing as below:
BON'
s Gross Margin % Range Over the Past 10 Years
Min: 20.78 Med: 29.19 Max: 32.22
Current: 20.78
During the past 8 years, the highestGross Margin % of Bon Natural Life was 32.22%. The lowest was 20.78%. And the median was 29.19%.
BON's Gross Margin % is ranked worse than 57.79% of 1559
companies
in the Chemicals industry
Industry Median: 23.52
vs BON: 20.78
Bon Natural Life had a gross margin of 18.38% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Bon Natural Life was -4.00% per year.
Bon Natural Life (NAS:BON) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Bon Natural Life had a gross margin of 18.38% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Bon Natural Life Gross Margin % Related Terms
Bon Natural Life Gross Margin % Historical Data
* Premium members only.
The historical data trend for Bon Natural Life's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BON vs SNES, YMAT, GLGI: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Bon Natural Life's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bon Natural Life Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Bon Natural Life's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bon Natural Life's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Bon Natural Life (BON) has a Gross Margin % of 18.38% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Bon Natural Life and its competitors. This is 37% below median its historical median of 29.19. Over the past decade, Bon Natural Life's Gross Margin % has ranged from 20.78 to 32.22. According to the industry distribution chart, Bon Natural Life ranks #901 out of 1559 companies in the Chemicals industry, placing it in the top 57.8%.
Is Bon Natural Life's Gross Margin % too high?
Bon Natural Life's current Gross Margin % of 18.38% is 37% below median its 10-year median of 29.19. Over the past 10 years, this metric has ranged from a low of 20.78 to a high of 32.22. The Chemicals industry median Gross Margin % is 23.52. Bon Natural Life's value of 18.38% is 21.9% below this industry median. Based on the distribution chart, Bon Natural Life ranks #901 out of 1559 companies in the Chemicals industry, which is below the industry midpoint. Overall, Bon Natural Life has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bon Natural Life's Gross Margin % compare to SNES and YMAT?
According to the Chemicals industry distribution chart, Bon Natural Life ranks #901 out of 1559 companies for Gross Margin %. This places Bon Natural Life in the lower half of its industry. The industry median Gross Margin % is 23.52. Bon Natural Life's value of 18.38% is 21.9% below this benchmark. Historically, Bon Natural Life's own Gross Margin % has ranged from 20.78 to 32.22 over the past decade. While the company's 10-year median is 29.19 vs. the industry median of 23.52, Bon Natural Life has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.52, based on 1,559 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bon Natural Life's current Gross Margin % of 18.38% is 21.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Bon Natural Life and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bon Natural Life's current Gross Margin % is 18.38%, which is 37% below median its own 10-year median of 29.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bon Natural Life stock overvalued right now?
Based on GuruFocus' analysis, Bon Natural Life (BON) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.76, compared to a current price of $1.14 — trading 50% above its estimated fair value. The current Gross Margin % is 18.38%, which is 37% below median its 10-year median of 29.19 and 21.9% below the Chemicals industry median of 23.52. Bon Natural Life's overall GF Score™ is 42/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Bon Natural Life (BON), the current Gross Margin % is 18.38% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bon Natural Life (BON) Overvalued in 2026?
Based on GuruFocus' analysis, Bon Natural Life stock appears to be overvalued.
The current stock price of $1.14 is trading 50% above its estimated GF Value™ of $0.76.
GuruFocus considers Bon Natural Life to be Significantly Overvalued.
Key valuation signals for BON:
Gross Margin %: 18.38% (37% below median its 10-year median of 29.19)
GF Value™: $0.76 vs. price of $1.14 (50% above fair value)
Industry Position: 21.9% below the Chemicals median (#901 of 1559)
No single metric tells the full story. See the BON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bon Natural Life Ltd focuses on the manufacturing of personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers, natural health supplements such as powder drinks and bioactive food ingredient products mostly used as food additives and nutritional supplements by its customers. It has developed four technology platforms for large-scale separation, safety improvement, activity enhancement, and functional compounding of natural products. The company's offerings include Fragrance compounds, Health supplements, and Bioactive food ingredients. The company generates revenue from the sale of its products, the majority derived from the sale of Fragrance compounds, which include natural compounds extracted from plants for cosmetic applications.
42GF Score
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