Image by Sean Hayes from Pixabay

Only 5 stocks meet the criteria¹ to be included in the munKNEE Plant-based Food Stocks Index and each constituent's latest quarterly financial report shows that ALL the constituents :

• have negative net operating cash flows but all but one (OTLY) have shown some improvement over the previous quarter;
• have negative net profits and just one (OTLY) has shown some growth over the previous quarter;
• have negative earnings before interest depreciation and amortization (EBITDA) but two (OTLY & BYND) have shown some improvement over the previous quarter;
• have negative EBITDA margins but two (OTLY & BYND) have shown some improvement over the previous quarter.

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, for the past 3 weeks 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.

1. Guru Organic Energy (GUROF): No Change in the last 3 weeks and remains 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.
2. Beyond Meat (BYND): DOWN 11.6% this week, is DOWN 13.3% in the last 3 weeks, is now  DOWN 79.4% 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.
3. Oatly Group (OTLY): DOWN 20.4% this week, is DOWN 21.7% in the last 3 weeks, and is now DOWN 75.5% 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.
4. Else Nutrition (BABYF): DOWN 21.3% this week, is only DOWN 5.9% in the last 3 weeks, but is DOWN 46.1% 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. 
   • has a 28% chance of encountering financial stress in the next 2 years.
   • Editor's Note: The stock no loner meets the criteria for being in the Index but will remain in the Index until it is rebalanced at the end of 2022.
5. Tattooed Chef (TTCF): DOWN 39.7% this week, is DOWN 52.1% in the last 3 weeks and is now DOWN 85.5% 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.

In total, the munKNEE Plant-Based Food Stocks Index went DOWN 14.9% this week, has gone DOWN 17.7% in the last 3 weeks, and is now DOWN 78.2% 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. Please note that one or more are penny stocks and such stocks are easily manipulated; do your own careful due diligence.

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