Disclaimer
It is by no means a matter of form or form, fluid and function, an analytical, qualitative or intelligent report. There is absolutely no financial advice here, as the only financial advice I can give is research, research, and research. The purpose of this analysis is to serve as an example of investigating a company’s track record, fundamentals, and assets through various lenses to determine what constitutes a good potential investment. The function of this writing is to serve as an educational support Resource for investors looking to understand how to find good investments. So read on and learn about a business making burgers from plants, converting a market to meat substitutes, and trying to survive.

editorial

What is the real cost of being early? Apple’s iPhone line hit the market in 2007, but before that, the shrill cynic might be referring to Microsoft’s failed attempts at the start of the decade. While the historian might dig down to Psion in 1984, anyone with a basic knowledge of BlackBerrys and PDAs in general would know that Apple was not the first in the concept. The price of Psion? Maybe ego, market cap, a real future, but in the billions of lifetime income, has Psion really lost? Granted, they’ll never get the clubhouse, their name only belonging to the historian, but a final $ 200 million buyout hardly seems like a cost.

For Beyond meat , what is the real cost of being ahead? For the founder and CEO, a net worth of several hundred million, a multi-billion dollar publicly traded company and a small ego burnt out. Their investors pay more, their egos burnt with their money; but in mid-October, valuing their business at $ 10 billion, an eight-quarter average of $ 100 million in sales, maybe it was their egos and their money to burn. Honestly, this analyst has nothing but praise for Beyond Meat: one of the first companies to mass-produce a plant-based “meat” alternative. Paving roads and build bridges to supermarkets, dinner tables, Sunday grills and restaurants. Bring the meat substitute philosophy out of Wall Street to Main Street. Fast food menu placements and local restaurants. Beyond meat did an amazing job and should be really proud of himself.

As the world begins to realize the real thing scope From problems to be solved, known and unknown to a planet on fire, meat substitutes will have an increasingly large market capitalization. The reasons for a drastically expanding market are many ranging from labor, environment, processing, pollution, space, health, veganism / vegetarianism / animal ethics, costs, etc., etc., etc. Even the most skeptical of ten years ago must adjust their conviction as the overwhelming truth of the future roars. But maybe they can be solved forever Beyond meat . Highlighting their failures is about highlighting their successes, how each company that came before did better, and how each company that comes after can remedy it.

I can’t believe it’s not meat, except that it has absolutely nothing to do with meat and the stress on the plant juice is… weird. The famous margarine used a catchy slogan, and one of the greatest models of all time, to spread through the 1990s, reaching nearly $ 300 million in sales in 2016. Although any comparison between margarine and Beyond Meat’s burgers would be a bit oily, the contradictions are much more relevant. Can’t believe it’s not margarine has vegan, organic, and lean lines the same way Beyond meat has various factory lines, except it is owned by Unilever. Unilever, an international conglomerate of subsidiaries such as Lipton, Dove, Ax, Ben & Jerrys, had revenues of around $ 58 billion last year and has a market capitalization of just over $ 134 billion. of dollars. This analyst would agree with any ethical argument to tear up Unilever, to what end? All these affiliates are splitting up just to go public and get their own absurd valuations? Technology and the hope of Beyond meat It could certainly make the market hungrier, but when it’s Mr. Creosote’s time, will anyone have thoughts and prayers for Beyond?

From established empires like Kellogg’s, Nestlé, Unilever, Tyson, to upstarts like Impossible food , Just eat Inc. , Mosa Meat, Meat, FoodWorks Pattern Inc. ; Beyond meat not only has competitors, they have problems. Scientifically, Beyond meat is surpassed. It’s a veggie burger with vegetable juice painted to taste as similar to meat as possible. Their competitors do mass spectrometry to ensure that the protein composition of their lab-grown meats is identical to the meat product. From there they can scientifically to modify the transcriptomic profile of the cell line to create a hamburger with the perfect consistency and taste, more nutritional than you might imagine, all at the expense of growth media and impression. Beyond meat takes vegetables and heavily transforms them to be a cheap mimic, a Mona Lisa facade of their competitor. On the revenue side, the company could easily create a start-up, with its $ 886 million in cash and cash equivalents from October’s quarterly report, but then it loses the much-needed lead.

Far from organic growth, Beyond Meat’s business plan is unsustainable. Sitting at an average profit rate of about 33% through the creation of their sales in 2018, a historic annual report of operating expenses over gross revenues of 4 times, $ 886 million in cash will only allow them to spend than 6 other quarters. Also, the only reason they have cash, and not BANKRUPTCY is a $ 1.1 billion convertible bond sale this year. What a good time to point out that an asset can be worth more dead than alive; if entity X was selling short PARND infinitely, given the market’s capacity to do so, PARND is unable to sell its own shares in the market (removing this line of capital accumulation), and any bank or institution willing to lend money is likely to look at its books and say no. This author absolutely insinuates that companies hungry for news of the debt cycle like Beyond meat are kept alive in the market as a means for both, a) reserve collateral for the banks that manage their general ledger. And b) being sold endlessly on the stock exchange knowing full well that the business is illiquid and unable to achieve profitability, so that they can unplug the business itself if ever it is necessary. Even after a possible non-synthetic hyperinflationary event food (which would hurt particularly Beyond meat since they use breeding plants), Beyond meat has no path to profitability. Their overheads are ridiculous, their books aren’t as creative as they are sad, and they don’t have any good outcomes.

Pull just how much in sales Beyond meat would need to knock for them to become profitable would be almost impossible; their operating expenses appear to be derived from the actual cost of the goods produced, rather than the BS rating on a 10-Q. They don’t have the infrastructure pipeline to meet any massive increase in demand, which is good because even they know the demand is not coming. From there, they gorged themselves on their depreciation reserve, taking on more debt through leases and purchases of $ 104 million of tangible assets as all the sales optimism for years yielded a meager quarterly growth of $ 30 million after 7 obsolete. Beyond meat survives if they manage to increase their profit margins, which would reduce their sales, to $ 11.50 / kg price tag at this author’s local grocer. In many ways, companies like Beyond meat achieve profitability during hyperinflationary events (the increase in the price of healthcare has been offset by an increase in the number of healthcare industries – but unevenly); as commodity prices rise and ground beef grows $ 4 / kg double digits now, and should reach higher as inflation increases, synthetic alternatives can go from unprofitable to profitable by artificially capitalizing on this hyperinflation without being in the same direct line of increasing costs. If ground beef goes to $ 20 / kg , Beyond meat can afford to match and achieve a profitability of around 60%, but that still would not be enough. As their own costs go up, all that profit margin goes down. The only way hyperinflation helps Beyond meat is cheaper money, which they will continue to need without massive deflationary pressures in manufacturing. Except in the meantime, their competitors are creaking their ax and cutting into their market all the time. Between the tortoise or the hare winner of the race, they each rest. Beyond meat will continue to fight meat substitutes and synthetics to the end, and as the field presses in, can they count on more and more private money and public attention?

There are times when a move can be profitable, and profitability can be a move. For a company that relies on an oversized profit for earnings ratio, Beyond Meat’s books will only bring it down. While cheap headlines focusing on increasing sales can fool the lazy eye, the real one scope The horror show of non-profitability is just a simple EDGAR search. In BYND’s books, the investor’s opinion can be found, and one day, can Beyond meat belonged to the historian.

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Disclaimer

Thanks for your time, I really appreciate it and hope it will add value to it. This analysis should not be used as primary financial advice, rhyme or reason. This book is an editorialized overview of the pieces and pieces of the company, as well as the different ways in which this author analyzes them. As of the publication date 11/16/2021, this author has no investment in the price of BYND and never will. I absolutely hate short selling, I think it should be banned for so many reasons, and a short investment strategy should not be taken as a suggestion to short sell Beyond meat , I believe that it is their investors, and they alone, to ultimately decide the fate of the business, and that only they have the right to sell a percentage of the ownership in the business.

As the main purpose of this article is to be informative about the company, the stock market and the relevant market mechanisms, feel free to ask any questions.

Thank you.