Jefferies has revised its price target for Beyond (BYON, Financial), reducing it from $6.50 to $5, while maintaining a Hold rating on the stock. The firm's analysis suggests that achieving a near-breakeven EBITDA is feasible by the end of 2025. Moreover, it predicts that an annual positive EBITDA is probable in 2026, provided the macroeconomic environment and consumer interest in home furnishings remain stable.
Nevertheless, Jefferies notes that the stock's valuation will likely remain unchanged until there is a significant improvement in quarterly EBITDA. This insight was shared in a recent post-earnings communication with investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Beyond Inc (BYON, Financial) is $14.75 with a high estimate of $36.00 and a low estimate of $6.50. The average target implies an upside of 259.76% from the current price of $4.10. More detailed estimate data can be found on the Beyond Inc (BYON) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Beyond Inc's (BYON, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Beyond Inc (BYON, Financial) in one year is $12.47, suggesting a upside of 204.15% from the current price of $4.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Beyond Inc (BYON) Summary page.
BYON Key Business Developments
Release Date: February 25, 2025
- Revenue: $1.4 billion for the year ending December 2024, an 11% decline versus full-year 2023.
- Gross Margin: 23% for Q4, a 380-basis-point improvement year over year.
- Adjusted EBITDA: Loss of $28 million for Q4, a 43% improvement versus Q4 2023.
- GAAP EPS: Loss of $1.66 per share for Q4.
- Adjusted Diluted Loss Per Share: $0.91 for Q4.
- Cash and Cash Equivalents: $186 million at the end of Q4.
- SG&A and Tech Expense: $48 million for Q4, a $6 million decrease year over year.
- Marketing Efficiency: 12% of revenue in December, with a 2024 run rate of 17%.
- SKU Reduction: Reduced Bed Bath & Beyond SKU count from 12 million to under 6 million by November, with an additional 1 million SKUs cut in December.
- Vendor Reduction: 800 vendor partners cut in December.
- Net Cash Proceeds: $17 million from building sale and $43 million from sale of common stock via ATM.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beyond Inc (BYON, Financial) achieved a gross margin of 23% in Q4, surpassing their target of 21.5%, indicating effective cost management and pricing strategies.
- The company successfully reduced SG&A expenses by $65 million in 2024, exceeding their initial target and demonstrating disciplined cost control.
- Beyond Inc (BYON) has made significant progress in vendor consolidation, eliminating millions of SKUs and focusing on profitable vendor relationships to improve margins.
- The company has strengthened its balance sheet with $186 million in cash and cash equivalents, supported by strategic investments and asset sales.
- Beyond Inc (BYON) is actively exploring blockchain and tokenization strategies, such as LifeChain, to unlock additional value and integrate innovative technology into their business model.
Negative Points
- Revenue declined by 21% year-over-year in Q4 and 11% for the full year 2024, as the company focused on margin improvement and profitability over top-line growth.
- Despite improvements, Beyond Inc (BYON) reported an adjusted EBITDA loss of $28 million for Q4, highlighting ongoing challenges in achieving profitability.
- The company anticipates continued revenue contraction in the short term as they prioritize profitability, which may impact growth prospects.
- Marketing efficiency remains a challenge, with a Q4 marketing spend of 17% of revenue deemed unacceptable by management, though improvements are targeted.
- The integration of acquired brands like Bed Bath & Beyond and Overstock is still in progress, with ongoing SKU rationalization and vendor streamlining needed to optimize operations.
