Beyond Meat, Inc.

BYND Details

Beyond Meat, Inc. (NASDAQ: BYND) is a pioneering plant-based meat firm with a portfolio of ground-breaking plant-based meats. It creates meat straight from plants, an innovation that allows consumers to enjoy the taste, texture, and other sensory characteristics of popular animal-based meat products while reaping the nutritional and environmental benefits of consuming our plant-based meat products.

Latest News:

• Launched New Product: Beyond Meat Jerky will be available on March 23, 2022, according to BYND. The tasty and handy plant-based jerky is the first product from the two firms' joint venture, Planet Partnership, LLC, which is a joint venture between BYND and PepsiCo, Inc.

FY21 Results:

• Expansion in Topline: The company's net revenue increased 14.24% year on year to USD 464.70 million in FY21 (ended December 31, 2021) from USD 406.79 million in FY20, mainly owing to an increase in volume sold.
• Boost in Volumes: In FY21, BYND's volumes of product sold increased to 84,583 pounds from 72,531 pounds in FY20.
• Cash and Debt Position: As of December 31, 2021, the company has USD 733.29 million in cash and cash equivalents and total debt of USD 1.13 billion.

Key Risk:

• Dependence on Third Parties: BYND has inked a multi-year plant-based protein sales agreement with one of its third-party pea protein suppliers, requiring it to purchase minimum monthly and semi-annual volumes for the contract duration. If it cannot quickly substitute pea protein or other raw materials, any supply disruption might significantly negatively impact its business.

Outlook:

• FY22 Guidance: As of February 24, 2022, BYND expects FY22 net revenues to be about 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 been volatile throughout the year, fallen 64.86% in the past nine months and is currently leaning towards the lower end of its 52-week range of USD 35.74 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 60.45.

Considering the significant correction in the stock price, strategic collaboration, positive outlook, associated risks, and current valuation, we recommend a "Buy" rating on the stock at the closing price of USD 50.58, up 0.96%, as of March 24, 2022.

Three-Year Technical Price Chart (as of March 24, 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.