Is Oatly stock a good buy? Short analysis. For more detailed analysis visit our website https://www.overlookedalpha.com
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00:00 Oatsly is a food company from Sweden that produces dairy products from oats. In the
00:04 third quarter of 2022, Oatsly reported revenue of $183 million which was a 7% increase on
00:10 the previous year. However, net losses more than doubled to $108 million. To top it off,
00:16 gross profit margins dropped to just 2.7% in Q3 from 26% the year before. Unsurprisingly,
00:23 this news sent the stock down 16% overnight and shares are now down 74% year to date,
00:29 trading at just over $2. Oatsly now has an enterprise value of $1.2 billion which means
00:33 the company is worth roughly 1.7 times revenue. And that's still not cheap. Oatsly's problems
00:39 stem from its decision to build its own factories. Building these factories was costly and slow
00:43 and allowed big rivals like Chobani, Planet Oat and Trader Joe's to gain market share.
00:49 Consumers now have a plethora of options to choose from when it comes to oat milk and
00:53 there's little reason why Oatsly should be preferred over other brands.