Liquidity remains a primary concern as the absence of positive operating margins suggests the company is likely burning through its $9.8 million cash reserve to fund ongoing operations.
| Metric | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 |
|---|
| Cash from Operations | 544.24K | 312.21K | 12.65M | 345.03K | 5.08M | -580.2K | 4.44M | 2.68M |
| Operating CF Margin % | 2.17% | 0.67% | 19.51% | 0.6% | 10.15% | -1.26% | 8.81% | 11.9% |
| Operating CF Growth % | 74.32% | -97.53% | 3567.52% | -93.2% | 974.88% | -113.07% | 65.49% | - |
| Net Income | -1.52M | -8.12M | 1.37M | 3.11M | 4.94M | 5.91M | 5.2M | 1.54M |
| Depreciation & Amortization | 1.24M | 1.14M | 1.22M | 1.2M | 1.17M | 1.19M | 1.25M | 1.24M |
| Stock-Based Compensation | 0 | 0 | 20K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -406.85K | 203.54K | 189.84K | -46.19K | -86.5K | 48.66K | 15.8K | 57.51K |
| Other Non-Cash Items | 445.31K | 5.98M | 1.1M | -246.34K | -160.86K | -30.78K | 205.47K | 71.87K |
| Working Capital Changes | 785.7K | 1.11M | 8.75M | -3.67M | -785.07K | -7.69M | -2.24M | -227.6K |
| Change in Receivables | 1.33M | -2.89M | 9.77M | -157.5K | -6.24M | -1.46M | -4.06M | 1.86M |
| Change in Inventory | 958.65K | 3.4M | 2.23M | 46.8K | 1.4M | -3.49M | 2.81M | -7.26M |
| Change in Payables | 378.98K | -1.62M | -805.44K | 2.02M | 613.34K | -50.04K | -824.54K | 2.72M |
| Cash from Investing | 983.42K | -4.74M | -3.26M | -24.2M | -375.59K | -800.18K | -1.39M | -1.69M |
| Capital Expenditures | -2.85M | -1.85M | -3.23M | -3.49M | -449.77K | -616.39K | -1.12M | -1.52M |
| CapEx % of Revenue | 11.37% | 3.98% | 4.98% | 6.11% | 0.9% | 1.34% | 2.22% | 6.75% |
| Acquisitions | 0 | -28.36K | 0 | -706.66K | 0 | -133.55K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -1.02M | -1.87M | -26.68K | -1.81K | -8.8K | -635 | 0 | -7.13K |
| Cash from Financing | -491.73K | -2.92M | -5.94M | 23.99M | 2.14M | 507.2K | -3.12M | 1.25M |
| Debt Issued (Net) | -491.73K | -1.19M | -5.94M | 123.7K | 2.14M | 872.51K | -2.63M | 1.75M |
| Equity Issued (Net) | 0 | 0 | 0 | 1000K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | -1.79M | 0 | 0 | 0 | 0 | -733.94K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 56.71K | 0 | 0 | 0 | -365.31K | 247.7K | -493.14K |
| Net Change in Cash | 2.34M | -7.5M | 2.37M | 740.24K | 7.27M | -1.03M | -246.08K | 2.31M |
| Free Cash Flow | -3.39M | -3.4M | 9.4M | -3.15M | 0 | -1.2M | 3.32M | 1.15M |
| FCF Margin % | -13.5% | -7.32% | 14.49% | -5.51% | - | -2.6% | 6.59% | 5.11% |
| FCF Growth % | 0.43% | -136.21% | 398.42% | - | 100% | -136.05% | 188.15% | - |
| FCF per Share | -0.47 | -0.47 | 1.30 | -0.46 | - | -0.17 | 0.47 | 0.16 |
| FCF Conversion (FCF/Net Income) | -0.38x | -0.04x | 11.75x | 0.11x | 1.00x | -0.11x | 0.86x | 1.90x |
| Interest Paid | 4.26K | 3.66K | 122.24K | 152.5K | 280.17K | 210.59K | 223.77K | 281.7K |
| Taxes Paid | 21.91K | 27.44K | 0 | 820.97K | 275.61K | 1.11M | 658.41K | 48K |
Operational Cash Flow Uncertainty
Given the absence of reported cash flow data in recent filings, the conversion efficiency between net income and operating cash flow remains entirely opaque, preventing a definitive assessment of whether the company's reported losses are being exacerbated by significant non-cash charges or actual cash burn.
The lack of transparency regarding cash conversion is particularly concerning given the firm's 45.99% revenue decline and negative operating margins. Investors should monitor future disclosures for a widening gap between accounting losses and cash outflows, which may indicate that the company is struggling to collect receivables from its provincial healthcare customers.
As indicated by the company's recent financial statements, the inability to maintain positive operating margins suggests that free cash flow generation is likely under severe pressure, potentially forcing the firm to rely on its $9.8 million cash reserve to fund ongoing operations and administrative overhead.
Without positive cash flow from operations, the company's ability to sustain its diverse product portfolio appears increasingly fragile. The current trajectory suggests that capital expenditures, even if minimal, may be consuming the remaining liquidity, leaving little room for strategic pivots or R&D investment.
Based on the reported operational structure, the company's reliance on agricultural commodities like licorice root suggests that working capital cycles are likely volatile, with inventory build-ups potentially tying up critical liquidity during periods of declining demand for its pharmaceutical and fertilizer product lines.
The firm's dual-track model, spanning from API manufacturing to sausage casings, likely complicates inventory management and cash cycle optimization. Investors should be wary of potential inventory obsolescence, as the shelf life of biological assets could lead to significant write-downs that further impair the company's cash position.
The company's recent rebranding and shift in product focus may obscure underlying cash flow realities, as reported in financial disclosures that fail to provide a clear reconciliation between net income and the actual cash impact of its circular production model and waste management initiatives.
The reliance on repurposing pharmaceutical waste into fertilizers may be masking the true cost of production, potentially inflating gross margins in ways that do not translate to actual cash inflows. Analysts should investigate whether these operational efficiencies are truly cost-saving or merely a way to defer cash expenses that will eventually materialize on the balance sheet.
Quick answers to the most common questions about buying BGM stock.
BGM Group Ltd. (BGM) generated $0.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
BGM Group Ltd. (BGM) reported negative free cash flow of $3.4M in 2024, indicating capital requirements exceeded cash from operations.
BGM Group Ltd. (BGM) spent $2.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.