Bonal International, Inc. (BONL)

Bonal International is exactly the kind of business I’m usually looking for. Cheap, tiny, and easy to overlook.

I really like it. The only real knock against it is simply that it’s very small.

The company sells and rents equipment that uses sub-harmonic vibration to relieve residual stress in metal parts.

Here’s the idea: when you form or weld a metal part, internal stress builds up inside the material. The traditional fix is heat treatment, where you essentially bake the stress out. Bonal’s equipment does the same thing with controlled vibration instead. I had never heard of this before I looked it up.

Bonal also sells related services like training, consulting, and stress relief work, and markets three product lines: Meta-Lax Stress Relief, Pulse Puddle Arc Welding, and Black Magic.

The business is small but real. Fiscal 2025 revenue came in at $1.74M, gross profit at $1.33M, and net income at $143k, which is the best result the company has posted in four years.

Gross margins are high, profitability has been consistent, and the balance sheet looks clean for something this size.

Cash stands at $1.06M against total liabilities of just $313k, mostly current items and lease obligations, with no long-term debt.

The stock trades at 76% of NCAV.

There are a couple of things worth watching. Four customers accounted for roughly 75% of receivables at year end. That’s a real concentration risk. And the financials are reviewed, not audited. That’s not unusual for a microcap like this, but it’s something to keep in mind before sizing up.