Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Beyond Meat would rather investors focus on flawed non-GAAP metrics such as adjusted EBITDA, which allow management to remove real costs of the business and to paint a rosier view of profits. 75.7% of Nomad Foods shares are held by institutional investors. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter. Over the TTM, Beyond Meat removed $23.7 million (6% of revenue) in share-based compensation and $7.5 million in restructuring expenses (2% of revenue) when calculating adjusted EBITDA. This report helps investors of all types see just how extreme the risk in BYND is based on: Growth Will Slow Down, but Competitors Won’t. Leading media outlets regularly feature our research. As featured in the HBS & MIT Sloan paper, Core Earnings: New Data and Evidence, our superior data drives uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools. Companies in the industry of "food & kindred products" are considered alternatives and competitors to Beyond Meat, including Mondelez International (MDLZ), Conagra Brands (CAG), Campbell Soup (CPB), Nomad Foods (NOMD), Flowers Foods (FLO), and The Hain Celestial Group (HAIN). This competitive disadvantage only makes Beyond Meat’s path to sustainable profitability that much more difficult. At its TTM FCF burn rate, the firm has enough cash to operate for just over 16 months before needing additional capital. While the market hasn’t liked this news, both the CEO’s of Beyond Meat and McDonald’s have stated that there is no change in the relationship between the two companies. This adjustment represented 3% of reported net assets. Comparatively, 64.8% of Flowers Foods shares are owned by institutional investors. Comparatively, Beyond Meat has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500. Figure 9: BYND Has Large Downside Risk: DCF Valuation Scenario. Comparatively, Beyond Meat has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. See the math behind this reverse DCF scenario. Comparatively, Flowers Foods has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Apart from total debt which includes the operating leases noted above, the most notable adjustment to shareholder value was $572 million in outstanding employee stock options. The following fund receives an unattractive rating and allocates significantly to BYND. David is a distinguished investment strategist and corporate finance expert. Figure 7: Current Valuation Implies Drastic Profit Growth. Export data to Excel for your own analysis. This article analyzes Beyond Meat’s stock performance, the history of the company, the market for meat alternatives, and some of its competitors. 32.0% of Beyond Meat shares are held by institutional investors. For example, without any existing shelf space, and only recently announcing an e-commerce platform, Beyond Meat must spend more on not only convincing consumers to try their products, but also on retailers to display their products. Flowers Foods has higher revenue and earnings than Beyond Meat. As an emerging growth company, Beyond Meat has opted to comply with the executive compensation disclosure rules applicable to “smaller reporting companies”, which require less stringent disclosures regarding compensation. Comparatively, 32.0% of Beyond Meat shares are owned by institutional investors. Figure 11: Implied Acquisition Prices to Create Value, BYND Implied Acquisition Prices For Value Accretive Deal. The Hain Celestial Group beats Beyond Meat on 10 of the 14 factors compared between the two stocks. Beyond Meat has lower revenue, but higher earnings than The Hain Celestial Group. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Insider Trading and Short Interest Indicate Market Skepticism. Despite less transparency, I know that Beyond Meat’s executive compensation plan consists of a cash bonus, option grants, and restricted share units (RSUs). Here’s a quick summary for noise traders when analyzing BYND: Executive Compensation Adds Additional Risk. Get short term trading ideas from the MarketBeat Idea Engine. I assume revenue grows 47% in years four and five, the same as year three. The mission of the company is focused on plant-based meat alternatives, using pea and other plant protein isolates. Per Figure 5, Beyond Meat saw significant improvement in profitability in 2018, but the improvement was short lived. 35.6% of Campbell Soup shares are owned by company insiders. Given Campbell Soup's stronger consensus rating and higher probable upside, analysts clearly believe Campbell Soup is more favorable than Beyond Meat. We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends. Furthermore, Beyond Meat’s current valuation implies it will generate sales equal to 29% of Tyson’s 2019 revenue – a level that places it as the sixth largest meat and poultry processor in the world in 2019. The Hain Celestial Group has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. With such high expectations, nearly any negative news could place Beyond Meat’s future earnings in doubt and cause shares to fall. Mondelez International (NASDAQ:MDLZ) and Beyond Meat (NASDAQ:BYND) are both consumer staples companies, but which is the superior business? Who are Beyond Meat’s main competitors? Figures 10 and 11 show what I think Kraft Heinz should pay for Beyond Meat to ensure it does not destroy shareholder value. The larger the firm gets, the more difficult it becomes to achieve large year-over-year (YoY) growth rates. You can see all the adjustments made to Beyond Meat’s balance sheet here. ET While Beyond Meat’s stock performance is attractive to many momentum traders, investors with fiduciary responsibilities should consider the deteriorating fundamentals, weak prospects to compete at the scale of its competition, and the unrealistic increase in profits implied by the current valuation. Learn about financial terms, types of investments, trading strategies and more. © 2020 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Competitors, BYND Operating Expense As Of Revenue Beyond Meat Vs. For reference, Beyond Meat’s invested capital has increased by an average of $84 million (28% of 2019 revenue) over the past two years. Economic earnings, which account for the unusual items on the income statement and changes to the balance sheet, are negative $6 million and declining over the TTM, even as adjusted EBITDA is positive and rising. Beyond Meat. Instead, due to the proliferation of noise traders, the focus tends toward technical trading tends while high-quality fundamental research is overlooked. Avoid losses from using other firms’ data: “…many of the income-statement-relevant quantitative disclosures collected by NC do not appear to be easily identifiable in Compustat…” – page 13, “Core Earnings [calculated using New Constructs’ novel dataset] provides predictive power for various measures of one-year-ahead performance…that is incremental to their current-period counterparts.” – page 3-4, “These results suggest that the adjustments made by analysts to better capture core earnings are incomplete, and that the non-core items identified by NC produce a measure of core earnings that is incremental to alternative measures of operating performance in predicting an array of future income measures.”  – page 26, “An appropriate measure of accounting performance for purposes of forecasting future performance requires detailed analysis of all quantitative performance disclosures detailed in the annual report, including those reported only in the footnotes and in the MD&A.” – page 31. 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