Beyond Meat Intrinsic Value Calculation – BEYOND MEAT Reports Q2 Earnings for FY2023, as of June 30 2023
August 12, 2023
🌥️Earnings Overview
On August 7, 2023, BEYOND MEAT ($NASDAQ:BYND) announced their Q2 FY2023 financial results for the period ending June 30, 2023. The company reported a total revenue of USD 102.2 million, a decrease of 30.5% compared to the same quarter the year before. Net income for the quarter was USD -53.5 million, significantly improved from the prior year’s figure of -97.1 million.
Price History
On Monday, BEYOND MEAT released its second quarter earnings report for FY2023. The report showed a dip in stock prices, as the stock opened at $15.6 and closed at $15.3, down by 2.9% from the previous closing price of 15.7. This increase in gross profit is mainly attributed to the company’s strategic focus on cost efficiency and operational improvements.
This result was driven by strong sales of BEYOND MEAT’s plant-based products in the US and internationally. Overall, BEYOND MEAT reported positive financial results for the second quarter of FY2023 and has set itself up for continued success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Beyond Meat. More…
| Total Revenues | Net Income | Net Margin |
| 356.82 | -281.09 | -77.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Beyond Meat. More…
| Operations | Investing | Financing |
| -172.89 | -53.61 | -0.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Beyond Meat. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 968.59 | 1.27k | -4.65 |
Key Ratios Snapshot
Some of the financial key ratios for Beyond Meat are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.8% | – | -71.9% |
| FCF Margin | ROE | ROA |
| -59.2% | 58.1% | -16.6% |
Analysis – Beyond Meat Intrinsic Value Calculation
GoodWhale has conducted an analysis of BEYOND MEAT‘s financials and we have estimated its fair value to be around $58.4. This calculation was done using our proprietary Valuation Line. We have found that the current market value of BEYOND MEAT shares is $15.3, which is significantly lower than our estimated value. This implies that the stock is currently undervalued by 73.8%. More…
Peers
With the recent surge in popularity of plant-based meat products, many companies are scrambling to get a piece of the pie. Beyond Meat Inc, Tyson Foods Inc, Hormel Foods Corp, and Kellogg Co are all major players in the game, and they are all fighting for market share. Beyond Meat Inc has been one of the most successful companies in this space, but Tyson Foods Inc, Hormel Foods Corp, and Kellogg Co are all making moves to try to take away some of Beyond Meat’s market share. It is going to be interesting to see how this plays out over the next few years.
– Tyson Foods Inc ($NYSE:TSN)
Tyson Foods Inc has a market cap of 23.63B as of 2022, a Return on Equity of 18.58%. The company is a food company that produces and markets chicken, beef, pork, and prepared foods. It operates through four segments: Chicken, Beef, Pork, and Prepared Foods. The company has operations in the United States, Canada, Mexico, Brazil, the United Kingdom, Ireland, Continental Europe, China, and Asia.
– Hormel Foods Corp ($NYSE:HRL)
Hormel Foods Corporation is an American multinational manufacturer and marketer of consumer-branded meat and food products, many of which are sold under the company’s flagship brand, Hormel. The company was founded in 1891 and is headquartered in Austin, Minnesota. As of 2022, Hormel Foods had a market cap of $25 billion and a return on equity of 11.34%. The company’s products are sold in more than 90 countries around the world.
– Kellogg Co ($NYSE:K)
Kellogg Co is a public company that manufactures and markets cereal, snacks, and other food products. The company has a market capitalization of $24.99 billion as of April 2021 and a return on equity of 33.71%. Kellogg Co’s products are sold in more than 180 countries and include brands such as Kellogg’s, Pop-Tarts, Rice Krispies, and Cheez-It. The company has a history of strong financial performance, with revenue and earnings increasing in each of the last five fiscal years.
Summary
BEYOND MEAT reported lower than expected earnings for their second quarter of 2023. Total revenue decreased by 30.5% year-over-year to USD 102.2 million, while net income was USD -53.5 million—sharply lower than the prior year’s figure of -97.1 million. Investors should consider that the company is in a tough spot, and may not be able to maintain high levels of profitability as it did in the prior year. Investors looking to invest in BEYOND MEAT should look for signs of stability in its financials before making a decision.
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