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small-cap

Update on One NASDAQ- Listed Food Processing Stock - Beyond Meat Inc

Jun 09, 2023 | Team Kalkine
Update on One NASDAQ- Listed Food Processing Stock - Beyond Meat Inc

Beyond Meat Inc

Beyond Meat, Inc. (NASDAQ: BYND) is a plant-based meat company, which offers a portfolio of plant-based meats. The Company’s flagship product is the Beyond Burger, designed to look, cook, and taste like a traditional beef burger.

Recent Financial Update:

  • BYND's financial performance in the first quarter of 2023 demonstrated several notable figures. Net revenues amounted to USD 92.2 million, representing a 15.7% decrease compared to the previous year.
  • Gross profit reached USD 6.2 million, with a gross margin of 6.7% of net revenues, indicating a significant improvement from the year-ago period's gross profit of USD 0.2 million and a gross margin of 0.2% of net revenues. The positive impact on gross profit and gross margin was attributed to reduced manufacturing costs (excluding depreciation), decreased logistics costs, and relatively lower materials costs per pound.
  • BYND reported a net loss of USD 59.0 million, equivalent to a loss of USD 0.92 per common share, compared to a net loss of USD 100.5 million, or USD 1.58 per common share, in the year-ago period. Adjusted EBITDA showed a loss of USD 45.8 million, accounting for -49.6% of net revenues, an improvement from the Adjusted EBITDA loss of USD 78.9 million, or -72.1% of net revenues, in the year-ago period.
  • As of April 1, 2023, the company's cash, and cash equivalents balance, including restricted cash, amounted to USD 273.6 million, while the total outstanding debt stood at USD 1.1 billion.
  • Looking ahead, BYND provided its outlook for the full year 2023. The company expects net revenues to range from approximately USD 375 million to USD 415 million, indicating a decrease of approximately 10% to 1% compared to 2022. Due to the change in accounting estimate for the estimated useful lives of its fixed assets, the gross margin is now projected to be 1 to 2 percentage points higher than the previous guidance of the low double-digit range for the full year. Operating expenses are anticipated to be around USD 250 million, slightly weighted towards the first half of the year, while capital expenditures are estimated to range from USD 30 million to USD 35 million.

Technical Observation (on the daily chart)

The stock price has given correction over the past year of 26.83%, indicating a downtrend trend. This downtrend trend is also evident in the medium-term, with a correction of 19.83% in the previous six months. The price is currently near an important resistance zone of USD 12.00 – USD 13.00, with the price showing rejection from the same zone. The momentum indicator RSI (14 period) currently stands at 52.37, recovering from oversold levels, suggest further some short-term consolidation. It is worth noting that the price is currently trading between both the 21-day and 50-day SMA trend-following indicators, and these SMAs will act as short-term support and resistance respectively.  

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is June 09, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.