Plant-Based Food Stocks Index Up Last Week; Still Down YTD

Despite all the hype regarding plant-based grocery and fast foods, there are very few publicly trading pure-play companies in the sector. By the end of 2023 that will have changed with Kellogg Co. (NYSE:K) splitting into three independent companies, of which one will focus exclusively on plant-based foods.

The munKNEE Pure-Play Plant-Based Food Stocks Index

Below is the stock price performance of each of the 5 constituents last week, in descending order, and in the last 5 weeks (since the end of May) and YTD:

1. Beyond Meat (NASDAQ:BYND): +33.5% last week; +11.6% in last 5 weeks; -51.0% YTD
   • Seeks to replicate the look, cook, and taste of meat. Its products are sold in the meat case of retail food stores across the U.S. and Canada and 83 other countries.
     • *Altman Z-Score: 0.9; 44% chance of financial distress in the next 2 years
     • **Piotroski F Score: 1
2. Oatly Group (NASDAQ:OTLY):+18.2% last week; -2.4% in last 5 weeks; -48.6% YTD
   • The world’s original and largest oat drink company catering primarily to customers in Sweden, Germany, United Kingdom, Netherlands, Finland, and North America.
     • *Altman Z-Score: 3.6; 29% chance of financial distress in the next 2 years
     • **Piotroski F Score: 6
3. Tattooed Chef (NASDAQ:TTCF): +7.0% last week; -6.3% in last 5 weeks; -56.6% YTD
   • Offers a broad portfolio of plant-based food products that are available in the frozen food sections of national retail food stores across the United States.
     • *Altman Z-Score: 6.1; 27% chance of financial distress in the next 2 years
     • **Piotroski F Score: 3
4. Guru Organic Energy (CSE: GURU | OTC:GUROF): No Change last week; -22.9% in last 5 weeks; -43.3% YTD
   • A Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink.
     • *Altman Z-Score: 17.8; 26% chance of financial distress in the next 2 years
     • **Piotroski F Score: 3
5. Else Nutrition (TSX:BABY | OTC:BABYF): -4.1% last week; -57.4% in last 5 weeks; -48.3% YTD
   • An Israel-based food and nutrition company focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults.
     • *Altman Z-Score: 3.9; 24% chance of financial distress in the next 2 years
     • **Piotroski F Score: 3

*The Altman-Z Score is a numerical measurement used to predict the chances of a business going bankrupt in the next two years based on five financial ratios – profitability, leverage, liquidity, solvency, and activity and has an accuracy that ranges from 82% and 94%. 

**The Piotroski F Score is a back-tested strategy that rates how strong the financial fundamentals are for a value stock and in back-testing of the system against the market between 1976 and 1996 the system, it would have beaten the average return on the stock market by 13.4%.

• A score of 0-3 indicates that the company has weak fundamentals while a score of 8-9 indicates a company with powerful fundamentals that are most likely to keep performing well in the future.
• The Piotroski F Score is 100% accurate from a technical perspective yet unforeseen events like an economic downturn, for example, can cause the markets to plummet regardless of what model is used. The Piotroski F Score is no exception but, ignoring any extreme situations, there is likely quite a lot of merit to the Piotroski F Score.

The munKNEE Pure-Play Plant-Based Food Stocks Index was +22.0% last week, is unchanged in the last 5 weeks, and is -50.9% YTD.

We think the above Index reflects the true health of the plant-based food stocks sector in the U.S. and Canada.

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