Beyond Meat, Inc.

BYND Details

Beyond Meat, Inc. (NASDAQ: BYND) is a plant-based meat company established in the United States. Some of the company's products include Beyond Burger, Beyond Sausage, Beyond Beef, Beyond Meatballs, Beyond Breakfast Sausage Patties, Beyond Breakfast Sausage Links, Beyond Beef Crumbles, and Beyond Italian Sausage Crumbles. The company distributes various plant-based products across its three core meat platforms of beef, pork, and poultry. As of December 2021, its products were available in over 130,000 retail and foodservice establishments throughout 90 countries.

Latest News:

• Availability of Beyond Meat Tenders: On April 12, 2022, BYND announced that their BYND Tenders would be widely available in over 8,000 leading retail venues around the country, including supermarkets, pharmacies, and club shops. Beyond Chicken Tenders are now available at certain Albertsons, CVS, Sprouts, and Whole Foods Market locations around the country and will be available at all Kroger banners throughout April. Beyond Meat, the #1 selling plant-based meat brand in the refrigerated category in retail1 and across total food service, continues to expand customer access to excellent plant-based protein with this expansion.

FY21 Results:

• Double-Digit Growth in Topline: The company reported YoY growth of 14.24% in net revenue to USD 464.70 million in FY21 (ended December 31, 2021) from USD 406.79 million in FY20, driven by 76.86% YoY growth in international net revenues.
• Expansion of Losses: In FY21, BYND's net loss expanded to USD 182.11 million from USD 52.75 million in FY20.
• Cash and Debt Position: The company had USD 733.29 million in cash and cash equivalents as of December 31, 2021, and total debt of USD 1.13 billion.

Key Risk:

• Dependence on Third Parties: BYND has agreed to purchase minimum monthly and semi-annual volumes from one of its third-party pea protein suppliers for the contract duration. Any supply disruption might negatively impact its business if it cannot quickly substitute pea protein or other raw ingredients.

Outlook:

• FY22 Guidance: As of FY21, BYND anticipated net sales in the range of USD 560 – 620 million, representing a YoY growth of 21% - 33%.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation:

BYND's stock price has fallen 69.11% in the past nine months and is currently leaning towards the lower end of its 52-week range of USD 35.41 to USD 160.28. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 45.98.

Considering the significant correction in the stock price, recent acquisition, positive outlook, associated risks, and current valuation. We recommend a "Speculative Buy" rating on the stock at the closing price of USD 38.33, up 3.93% as of May 02, 2022.

Three-Year Technical Price Chart (May 02, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.