Thursday , 18 August 2022

April Update: Plant-Based Food Stocks Index Declined 20%

The 4 stocks in the munKNEE Plant-Based Food Stocks Index are focused exclusively on the research, development, sales, distribution, and marketing of fake meat, dairy, egg, and seafood products and trade for a minimum of US$1/share.

By Lorimer Wilson, Founder & Managing Editor of munKNEE.com and a frequent contributor to eResearch.com, usfinancepost.com, bitgrum.com and talkmarkets.com.

About Plant-Based Foods

According to the Good Food Institute, grocery sales of plant-based foods that directly replace animal products have grown 27% in the past year to $7 billion with 98% of those Americans who are buying plant-based meat also purchasing conventional meat. The total plant-based food market is expected to grow at a CAGR of 11.9% going forward and reach $74.2 billion by 2027 .

The munKNEE Plant-Based Food Stocks Index

Below are the updated performances of the constituents in the Index since the end of March in descending order, along with their performances year-to-date and from their 2021 highs. In addition, the Chance of Financial Distress numbers are sourced from macroaxis.com and the Analyst Consensus data from stockanalysis.com.

  1. Guru Organic (GUROF): N/C in April; (DOWN 19.1% YTD); DOWN 42.3% from 2021 high
    • A Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink.
      • Chance of Financial Distress in the next 2 years: 26%
      • Analyst Consensus: No analysts following GUROF
  2. Laird Superfood (LSF): DOWN 16.6%; (DOWN 76.9% YTD); DOWN 94.6% from 2021 high
  3. Else Nutrition (BABYF): DOWN 17.6%; (UP 15.7% YTD); DOWN 70.4% from 2021 high
  4. Tattooed Chef (TTCF): DOWN 36.5%; (DOWN 48.6% YTD); DOWN 66.7% from 2021 high
    • Offers a broad portfolio of plant-based food products that are available in the frozen food sections of national retail food stores across the United States.

The average market capitalization of the above 4 stocks is $173M with an average stock price of US$5.36/share.

The munKNEE Pure-Play Plant-Based Food Stocks Index went DOWN 19.8% in April, and is now DOWN 47.4% YTD and DOWN 78.2% from its peak in 2021.

Not included in the Index are two huge companies with market capitalizations in excess of $2.2B which performed, as follow, in April along with their percentage changes YTD and from their 2021 highs:

  1. Beyond Meat (BYND): DOWN 23.7% in April; (DOWN 43.4% YTD); DOWN 80.8% from 2021 high
  2. Oatly Group (OTLY): DOWN 28.9%; (DOWN 55.3% YTD); DOWN 87.7% from 2021 high
    • The world’s original and largest oat drink company is headquartered in Malmö, Sweden, with a portfolio of alternatives to milks, ice cream, yogurt, cooking creams, and spreads available in more than 20 countries.
      • Chance of Financial Distress in next 2 years: 24%
      • Analyst Consensus: 25 stock analysts currently rate OTLY as a BUY.

We think the above Index reflects the true health of the plant-based food sector in the U.S. and Canada.