Investment Thesis
Beyond Meat faces acute financial distress with negative stockholders' equity (-$21.1M), persistent operating losses (-$70.6% margin), and negative operating cash flow (-$5.0M). Declining revenue (-15.6% YoY) combined with unsustainable 3.4% gross margins and $411.6M debt burden creates severe refinancing risk and near-term solvency concerns.
Strengths
- Substantial cash balance of $191.0M provides near-term liquidity runway
- Current ratio of 2.85x indicates adequate short-term payment capability
- Continued operational presence with $58.2M quarterly revenue demonstrates ongoing business activity
Risks
- Negative stockholders' equity indicates GAAP insolvency and complete equity value destruction risk
- Negative operating cash flow (-$5.0M) with deteriorating revenue creates rapid cash depletion trajectory
- Debt-to-cash ratio of 2.16x with negative interest coverage (-40.5x) creates critical refinancing risk within 24-36 months at current burn rate
- Revenue decline of 15.6% YoY with 3.4% gross margins creates compounding operational distress
- Operating losses of -$41.1M per period are unsustainable and demonstrate structural business model failure
Key Metrics to Watch
- Quarterly cash balance depletion rate and months of runway remaining
- Gross margin stabilization or recovery toward 20%+ levels
- Revenue stabilization and return to positive operating cash flow
- Debt covenant compliance and refinancing timeline
- Restructuring or turnaround initiative effectiveness
Financial Metrics
Revenue
58.2M
Net Income
-28.5M
EPS (Diluted)
$-0.06
Free Cash Flow
-7.6M
Total Assets
579.5M
Cash
191.0M
Profitability Ratios
Gross Margin
3.4%
Operating Margin
-70.6%
Net Margin
-48.9%
ROE
N/A
ROA
-4.9%
FCF Margin
-13.0%
Balance Sheet & Liquidity
Current Ratio
2.85x
Quick Ratio
2.22x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
-40.50x
Long-term Debt
411.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:28:39.341649 |
Data as of: 2026-03-28 |
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