This is a step-by-step stock review to answer the question, is Beyond Meat (BYND) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Beyond Meat (BYND) stock a good buy?
- Beyond Meat Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Beyond Meat (BYND) stock a good buy?
1. Beyond Meat Company History
- Founded in 2009: Beyond Meat was established by Ethan Brown with a mission to create plant-based meat alternatives that replicate the taste and texture of animal meat.
- Headquarters: Based in El Segundo, California, Beyond Meat is a leader in the plant-based food industry.
- Innovative Products: The company gained attention for its groundbreaking plant-based burgers and sausages, designed to appeal to both vegetarians and meat-eaters.
- Public Offering: Beyond Meat went public in May 2019, trading on the NASDAQ under the ticker symbol BYND, marking a significant milestone for the plant-based food sector.
- Partnerships: The company has formed key partnerships with major food chains, including McDonald’s and PepsiCo, to expand its market reach and product availability.
- Sustainability Focus: Beyond Meat emphasizes environmental sustainability, aiming to reduce the ecological footprint associated with traditional meat production.
- Global Expansion: The company continues to expand its product offerings and international presence, responding to growing consumer demand for plant-based and sustainable food options.
- Market Impact: Beyond Meat is recognized for pioneering the plant-based meat movement and influencing the broader food industry towards more sustainable practices.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 22
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Beyond Meat makes money:
- Product Sales: Beyond Meat makes money by selling plant-based meat products, including burgers, sausages, and ground meat, through grocery stores and foodservice providers.
- Partnerships with Restaurants: They generate revenue from partnerships with major restaurant chains, where their products are featured on menus.
- Foodservice Distribution: Beyond Meat earns from supplying its products to foodservice distributors who then sell to restaurants, cafeterias, and other food establishments.
- International Sales: The company makes money from exporting its products to international markets, expanding its global presence.
- Co-Branding Agreements: They profit from co-branding agreements where their products are used in collaboration with other food brands or companies.
- Retail Partnerships: Beyond Meat earns from partnerships with retailers for exclusive product lines and promotions within their stores.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Beyond Meat stacks up against other companies.
- Lifeway Foods, Inc.(LWAY) – 83
- J&J Snack Foods Corp.(JJSF) – 78
- Mama’s Creations, Inc.(MAMA) – 72
- Nature’s Sunshine Products, Inc.(NATR) – 67
- Lancaster Colony Corporation.(LANC) – 67
- Beyond Meat, Inc.(BYND) – 22
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founded Beyond Meat: Ethan Brown established Beyond Meat in 2009, creating a pioneering company in the plant-based meat industry.
- Developed Innovative Products: He led the development of groundbreaking plant-based products, including the Beyond Burger and Beyond Sausage, which closely mimic the taste and texture of animal meat.
- Secured Major Partnerships: Brown successfully formed key partnerships with major fast-food chains and retailers, including collaborations with McDonald’s and Walmart, significantly expanding product distribution.
- Achieved High-Profile IPO: Beyond Meat went public in May 2019 under Brown’s leadership, with a highly successful IPO that drew significant attention and investment.
- Global Expansion: Under his guidance, Beyond Meat expanded its operations internationally, entering new markets and increasing its global presence.
- Advanced Sustainability Goals: Brown emphasized sustainability in Beyond Meat’s mission, promoting the environmental benefits of plant-based diets and reducing the ecological impact of meat production.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Beyond Meat (BYND) is 37/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Beyond Meat (BYND) stock a good buy?
Some of the top questions investors can have is Beyond Meat (BYND) stock a good buy or should I buy Beyond Meat (BYND) stock?
Beyond Meat (BYND) presents a compelling investment opportunity due to its leadership in the plant-based meat industry. As a pioneer with innovative products like the Beyond Burger and Sausage, the company benefits from strong brand recognition and an expanding market for sustainable, healthier eating options. Strategic partnerships with major food chains and retailers further enhance its market reach and product availability.
However, there are risks to consider. Beyond Meat has faced challenges with profitability and financial stability, and the competitive plant-based food market is crowded with both emerging players and established food companies. While Beyond Meat offers exposure to a high-growth sector with significant future potential, investors should be mindful of its financial volatility and the intense competition within the industry.