Plant-Based Food Stocks Continued To Plummet Last Week
Image by Sean Hayes from Pixabay
Only 5 stocks meet the criteria1 to be included in the munKNEE Plant-based Food Stocks Index and they continue to drop, DOWN 7.8%, on average, last week and are DOWN 58.0% in the past 6 months and are now DOWN a whopping 75.6% YTD.
Each stock's latest quarterly financial report shows a company with a negative net operating cash flow, negative EBITDA and a negative EBITDA margin and only two of the stocks (Oatly and Beyond Meat) actually show any improvement in those metrics (source). With financials like those it begs the question "How much further are the largest plant-based food stocks likely to decline?"
To help you arrive at which, if any, of the constituents in the Index are best suited to buck the trend their performances are highlighted below, in descending order for the past week, and for the past 6 months and year-to-date. In addition, the extent to which each company is likely to encounter financial stress and/or bankruptcy in the next 2 years compared to its peers according to their Altman Z-Scores (as sourced from macroaxis.com) are also provided.
- Guru Organic Energy (GUROF): No Change last week but is DOWN 58.3% in the last 6 months and is now DOWN 66.3% YTD
- a Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink
- has a 26% chance of encountering financial stress in the next 2 years.
- Tattooed Chef (TTCF): DOWN 6.8% last week, is DOWN 44.9% in the last 6 months, is DOWN 71.7% YTD
- 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
- has a 25% chance of encountering financial stress in the next 2 years.
- Else Nutrition (BABYF): DOWN 9.8% last week, is DOWN 55.3% in the last 6 months, is DOWN 48.3% YTD
- 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.
- It is coming close to dropping off the bottom of our index. It is also the sole penny stock in the group.
- has a 28% chance of encountering financial stress in the next 2 years. (NB: this relates primarily to ability to handle debt, not strength or chance of avoiding bankruptcy.)
- Beyond Meat (BYND): DOWN 10.4% last week, is DOWN 62.3% in the last 6 months, is DOWN 78.7% YTD
- seeks to replicate the look, cook, and taste of meat. Its products are sold in the meat case of retail food stores across the U.S. and Canada and 83 other countries
- has more than an 86% chance of encountering financial stress in the next 2 years.
- Oatly Group (OTLY): DOWN 17.4% last week, is DOWN 42.7% in the last 6 months, is DOWN 74.4% YTD
- the world’s largest oat drink company catering primarily to customers in Sweden, Germany, the United Kingdom, Netherlands, Finland, and North America
- has a 41% chance of encountering financial stress in the next 2 years.
In total, our Plant-Based Food Stocks Index went DOWN 7.8% last week, has gone DOWN 58.0% in the past 6 months, and is now DOWN 75.6% YTD.
1The 5 stocks in the munKNEE Pure-Play Plant-Based Food Stocks Index consist of companies with market caps in excess of $50M which trade on Canadian and/or American stock exchanges.
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