Summary: OVERPRICED
Score: 8/20
MOS: -300%
Share Price: $142
Sticker Price: $35
To infinity and beyond!
Nope… this isn’t Toy Story (I’m such a movie nerd). Actually, this is Beyond Meat, one of the market leaders for plant-based meats.
Here is a quick summary from their website:
Our process is simple. We source the building blocks of meat directly from plants. Using heating, cooling, and pressure, we create the fibrous texture of meat from plant-based proteins. Then, we mix in fats, minerals, fruit and vegetable-based colors, natural flavors, and carbohydrates to replicate the appearance, juiciness, and flavor of meat. The result? Uncompromisingly delicious plant-based burgers, sausage, and beef, no sacrifice required.
Plant-based meats are a growing trend and Beyond Meat is one of the top players. The problem is, this is an EASY business model to duplicate. There isn’t a wide moat. Creating plant based meats doesn’t take a lot of effort and now other brands including Tyson, Kroger, and Nestle are nipping at Beyond Meat’s heals.
See what I did there? Nipping-at-the…. never mind. Cheesy joke. I’ll move on.
With the stock being well OVERPRICED and having too many competitors, maybe put this on your watchlist. It’ll be cool to see where the plant-based meat industry goes but from an investment standpoint, you and I like to make much bigger gains in the market. So, we’ll pass on this one.