Last Updated: March 23, 2022
Beyond Meat is one of the fastest-growing whole food producers in the US. The company’s key feature is the well-developed and unique meatless protein-based products without GMOs, synthetically produced ingredients, and antibiotics.
And even if that’s not to your taste, if you’re seeking an investment opportunity, you might want to know how to buy Beyond Meat stock.
We’ve covered the company’s brief history, the reasons and options for investing in it, and FAQs that will help you decide whether you should add the stock to your portfolio.
About the Company
Beyond Meat was established by Ethan Brown in Los Angeles in 2009, with the mission to “combat climate change”. Collaborating with two University of Missouri professors developing meatless protein, the company later came out with its distinctive product line. Its first whole food meat substitutes reached the US market in 2012 and expanded nationally within a year.
Today, Beyond Meat’s products can be found in 122,000 retail and foodservice locations in more than 80 countries. With such impressive growth, revenue has increased exponentially over the past several years. Beyond Meat’s earnings reached over $149.4 million in the second quarter of fiscal 2021.
Beyond Meat launched an IPO (initial public offering) in May 2019. The shares were listed on the NASDAQ exchange under the BYND ticker symbol. At the time, the company’s market value was $3.8 billion. And this had jumped to $9.44 billion by June 2021.
Should You Buy Beyond Meat Stock?
Beyond Meat is one of the fastest-growing plant-based meat companies in the US. However, before you invest in it, there are many factors to consider. Broadly speaking, these are:
- Beyond Meat’s recent financial performance.
- The stock fundamental and technical analysis.
- The BYND stock forecast and analysts’ expectations.
- The mix of assets in your investment portfolio.
You should also remember that the stock market has a volatile nature. So, assess your own risk tolerance before deciding on any equity investment.
Beyond Meat stock performance
The Beyond Meat stock IPO in 2019 was the best-performing public offering by a major US company in almost two decades. But how does the company trade now?
At the time of writing, Beyond Meat stock price is nearly flat at $99.64, with a market cap of $6.27 billion. The 52-week range is between $91.55 and $221.00.
BYND stock has been volatile since the company dropped Q2 earnings views, reversing higher after an initial drop, and reported a loss of 31 cents per share on income of $149.4 million. Despite the loss, the net sales marked a 31.8% increase year-on-year and beat expectations of $140.8 million.
Beyond Meat’s trailing 12-months (TTM) revenue has increased from only $88 million recorded in fiscal 4Q of 2018 to around $418 million reported in fiscal 1Q of 2021. The above statements implicate a BYND Meat combined annual growth rate or CAGR of nearly 200% in just two years.
Operating loss standing in the way of cash dividend
Although the company’s growth from the fourth quarter of 2018 has made some impressive progress toward profitability, its operating loss has been getting critical going into fiscal 2021. Looking at the last ten quarters, Beyond Meat has succeeded in reporting a quarter of positive operating profit during 1Q of 2020 at $6.6 million on a TTM basis.
Beyond Meat’s free cash flow for the quarter ending June 30, 2021, was $-171.87. This is an important measure of economic performance counted as operating cash flow minus capital expenditures.
The company has yet to increase earnings from a profitability standpoint. Operating losses have increased in the last couple of quarters and were the largest in fiscal 2021 Q1 at $76 million on a TTM basis. Notably, BYND earnings show that now it’s not the time for the company to initiate a cash dividend.
A wise investment is to create a diverse portfolio that spans many industries. The goal is to minimize the risks of losing money in the long run while maximizing your potential returns. Ideally, you should own a portfolio of 20–30 different companies and not more than 5% of each company.
So, before buying a BYND meat stock, you should make sure it will fit your existing portfolio and know enough about the industry and the company itself.
How to Buy Beyond Meat Stock
The best option you have when it comes to buying stocks is through an online trading platform. And when it comes to investing in Beyond Meat, this will be the only choice you have, as you will not be able to buy the plant-based meat producer stocks directly from the company.
The first step is to compare online stockbrokers and find the one that fits your needs and your financial plan. Once you make an account, search for the BYND quote. Then, you can easily purchase Beyond Meat stocks, following several simple steps.
Bear in mind that when you make an online order, you do it for a specific fee or commission. To play on the safe side, always research the trading platform and invest only as much as you are willing to lose.
Consulting a financial advisor is always a good idea if you need specific stock investment advice. Suppose you are unsure which vegan companies to invest in, or you are currently overwhelmed or confused by the capital you want to invest. Professional assistance will guide you through the best strategy in your particular case.
However, keep in mind that the price of consulting a financial planner can vary from $2,500 to $3,500 just to set up a plan, and later around $3,000 to $3,500 annually. Therefore, hiring a financial advisor wouldn’t be practical if you want to make just a small Beyond Meat investment.
Looking at the forecasts and history of the company, BYND stocks will probably have their share of ups and downs. However, long-term investors are set to profit from the company as the market for meat replacements is growing at a steady pace. Worldwide demand is driven by shoppers with a broad range of meal preferences, such as vegetarians, vegans, and those looking to have healthier diet options.
With this being said, it may be wise to invest in Beyond Meat. Remember, however, that choosing the right moment and trading platform to place your order will determine the success of your investment.
Beyond Meat has not issued dividends on regular shares in the past, despite the impressive revenue growth over the years. It’s not clear if the company is looking into creating an investor-friendly dividend policy soon.
As a public company, Beyond Meat has multiple owners. The three largest stockholders are Baillie Gifford & Co. (13.53%), The Vanguard Group, Inc. (6.91%), and BlackRock Fund Advisors (3.10%). If you want to join them, refer to the information above and learn how to buy Beyond Meat stock.