Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Biostar Pharmaceuticals, Inc. develops, manufactures, and markets pharmaceutical products for various diseases and conditions in the People's Republic of China. The company principally offers Xin Ao Xing Oleanolic Acid capsule, an OTC medicine for chronic hepatitis B. It also provides OTC products, such as Ganwang compound paracetamol and amantadine hydrochloride capsule for the relief of common cold, runny nose, sore throat, headache, and fever; Tianqi Dysmenorrhea capsule, a traditional Chinese medicine used for pain and other symptoms associated with menstruation; Deafness Tongqiao pills for hepatobiliary Huosheng, head swelling, deafness and tinnitus, ear pus, dry stool, and urine-yellow; Wenweishu capsules for the treatment of chronic gastritis and pain of epigastric cold; Zhitongtougu ointment for treating joint pain, swelling, tenderness, or dysfunction; and Chuzhang Zehaifu tablets for cataract. In addition, the company provides prescription pharmaceutical products, including Danshen granules; Taohuasan pediatric medicines; Jingang tablets; Danxiang Rhinitis tablets; Yanlixiao capsules; Piracetam tablets; Huangyangning tablets; Hyperthyroidism capsules; Fosfomycin Calcium capsules; Qianlietong capsules; Yituo Erythromycin particles; Danshen tablets; Muxiang Shunqi pills; Sifangwei capsules; and Aspirin Enteric-coated tablets. It sells its products through distributors and website that serves as internet-based China Hepatitis Internet Hospital, which offers HBV patients with information on HBV and treatment options, as well as methods to purchase HBV medicines. The company was incorporated in 2007 and is headquartered in Xianyang, the People's Republic of China.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. In particular, the stock is undervalued on P/FCF.