The tattooed chief (TTCF) seems promising for long -term transport. Let’s see why.
The tattooed chef is a plant -based company that sells frozen foods in retailers like Costco, Walmart and Sams Club. The American frozen food market Is worth around 55 billion and the tattooed chef is trying to disrupt the market with plant -based quality foods. A large part of this change involves generation of the millennium and generation Z.
The average millennium and the Z generation cannot cook, when they withdraw and frozen foods. But with more concentration on vegan and plant foods. This is where the tattooed chief comes out to shine.
The average man spends nearly $ 300 at the grocery store and for women, it is even more $ 323.
What is the size of the millennium generation and Z in America that you ask? 133 million large Americans and if they spend 20 dollars each for frozen foods based on plants. This represents approximately 2.6 billion dollars in revenue for the TTCF.
TTCF action price
Currently, the action is traded at $ 22.22 USD, at its end on Friday.
Just in case you do not know, TTCF is negotiated on the Nasdaq with a market capitalization of 1.80b. One year to date, the stock has not done much in terms of price movement, remaining almost flat between 20 and 30 USD.
The tattooed chief stock is currently no dividend. (He has not paid in the past)
What has the tattooed chef has that the very good food company and beyond meat is not?
Well, the possibility of having innovative products with a potential of 62 SKU in 2021 and they target approximately 200 SKU.
In addition, the tattooed chief is a vertically integrated sense that they have all the forms of manufacturing and sharing ideas. They can go from an idea to the market in 3 days (now it’s great).
Remember that the tattooed chef has all types of frozen foods in their range of products, such as single service bowls, smoothie bowls, vegetable mixtures, meat alternatives and factory pizzas. They also launched a European trade site because it will attract new customers from all over the United States.
The company currently has around 200,000 manufacturing room spaces. But it is important to note that they doubled the space in 2020 and will double again in 2021 (manufacturing room).
In addition, the company accelerates production because it is about to reach 62 different repercussions. They have a factory in Italy and a factory in California. The Italian factory will be particularly good for European expansion in 2024. Their certifications are at another level, they have all the biological seals approved by the USDA.
Income forecast of tattooed chief
The turnover of the tattooed chief increased by 87% the year in 2019 to 2020. They went from 58.1 million to 108.9 million in 2020.
In addition, their gross profit increased by 70% from 9.9 million to 16.8 million in 2020. The adjusted Baiia rose from 4.7% with a percentage of sales of 8.1%. It reached 10.6% of total sales of 9.7%. They have not yet launched their board of directors of advertising, but it should again help with the total sales.
The turnover planned for 2021 is 222 million, which represents almost 100% of income.
In 2022, their income should be around 300 million with a gross margin of 25 to 30%.
By 2023, income should be 500 million with a total margin of 30 to 35%.
2026 is the killer year with a planned turnover of 1 billion with total margins of 35% more. The adjusted baiia must be 20% from 2026 and 2021, it should be among the main adolescents.
In the third quarter, the 2020 tattooed chief had total assets of 66.718 million With 56,550 million total liabilities. They recently exercised a mandate for 230 million liquidity and put them at 296,718 million USD. Their P / s is approximately 13.04.
The company has a p / e before 309.25. Based on the above statistics with a P / S of 13.04 and with a turnover of 2021 of 222 million, their market capitalization should be 2,894,88 billion, which represents nearly a billion additional capitals. My price target in 12 months should be 45 to 50 USD.
Tattooed chief (TTCF) Prospective targets and prices
The tattooed chief is currently estimated at around $ 1.8 billion (market capitalization).
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With 2023, revenue advice at $ 500 million and an extremely conservative P / S (sales prices) of 5 (remember, bynd (Beyond Meat) is around 25) suggests an assessment of $ 2.5 billion and a yield of 40% of current levels. 15 p / s is more realistic – suggesting a market capitalization of $ 7.5 billion and more than one yield of 400%.
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The tattooed chef also has a growth of 155% of distribution points, with projections to reach more than 200% in 2021. They seek to extend beyond the American market
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Vertically integrated operations massively reduce costs and have a positive impact on the margin.
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The company’s electronic commerce side has started to operate recently.
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8% of the shares are held by institutions (when it is more covered, we should see the share price increase).
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The company has not yet really spent on advertising and draws a large number. They plan to do everything on advertising in 2021.
Thank you for reading, let me know your thoughts and comments below.
