Sunday , 3 July 2022

Plant-Based Food Stocks Index Continued To Decline In May

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, 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 in May (as of May 27th) in descending order, along with their performances year-to-date and from their 2021 highs.

  1. Else Nutrition (BABYF): UP 4.9% since the end of April; (UP 21.3% YTD); DOWN 69.0% from 2021 high
    • An Israel-based food and nutrition company focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults.
      • Chance of Financial Distress in the next 2 years: 28
      • Analyst Consensus: No analysts following BABYF
  2. Guru Organic (GUROF): DOWN 9.1% since the end of March; (DOWN 26.5% YTD); DOWN 47.7% 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
  3. Tattooed Chef (TTCF): DOWN 10.0%; (DOWN 53.7% YTD); DOWN 70.1% 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.
      • Chance of Financial Distress in the next 2 years: 24%
      • Analyst Consensus: 9 stock analysts currently rate TTCF as a BUY
  4. Laird Superfood (LSF): DOWN 13.0%; (DOWN 79.9% YTD); DOWN 95.3% from 2021 high
    • Co-founded in 2015 Laird offers environmentally conscientious, responsibly tested products made with real ingredients.
      • Chance of Financial Distress in the next 2 years: 62%
      • Analyst Consensus: 7 stock analysts currently rate LSF as a BUY.

The average market capitalization of the above 4 stocks is $153M with an average stock price of US$4.97/share.

The Pure-Play Plant-Based Food Stocks Index was DOWN 9.3% in May, and is now DOWN 52.3% YTD and DOWN 80.2% from its peak in 2021.

Not included in the Index are two huge companies with market capitalizations in excess of $1B with their stock performances in May, in descending order, along with their performances year-to-date and from their 2021 highs:

  1. Oatly Group (OTLY): UP 17.7% in May; (DOWN 47.4% YTD); DOWN 85.6% 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.
  2. Beyond Meat (BYND): DOWN 22.4%; (DOWN 56.1% YTD); DOWN 85.1% from 2021 high
    • A provider of plant-based meats which are sold in the meat case of grocery stores in 85 different countries.
      • Chance of Financial Distress in next 2 years: 10%
      • Analyst Consensus: 26 stock analysts currently rate BYND as a HOLD.

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

Leave a Reply

Your email address will not be published.