Steakholder Foods Ltd.: From the 3D Printer onto Your Grill
What sounds like science fiction could become reality as early as 1H25, and if it does, it is most likely attributable to Steakholder Foods Ltd. (NASDAQ: STKH). The Israel-based FoodTec start-up, around industry veteran Arik Kaufman, looks to disrupt the alternative protein market by delivering a scalable and customizable manufacturing option for established B2C players, addressing major growth hurdles for the industry. With their two flagship printers, STKH is the first NASDAQ traded company that specializes on sustainable 3D-printed seafood and meat alternatives. The MX200 Meat Printer and HD144 Fish printer are designed to print plant-based alternative proteins that emulate the taste and texture of their conventional counterparts authentically, at a competitive price, and environmentally friendly. Furthermore, STKH offers fish and meat premix blends to complement their printers that round out the product offering and ensure recurring revenues.
Investors and customers can see this impressive technology in action – from premix to final packaging (including taste test) – in the recently completed, full-scale, demonstration center, showcasing the technologies’ readiness for deployment. STKH’s ability to serve technological and material needs for their B2C partners puts the company in a unique position, to capitalize off strong projected growth in the alternative protein market, without the need for capital intensive consumer marketing. However, ultimately the success of the company boils down to consumer appeal. With the salmon patty, fish kebab, and beef steak winning prestigious awards at the World Plant-Based Expo, there is substantial reason for optimism.
Value and growth investors might consider STKH due to an attractive P/B ratio of 0.8 and a negative enterprise value, indicating a potential undervaluation and huge upside potential. As the company ramps up commercialization efforts and brings in first revenues, we expect additional strategic partnerships to follow, resulting in increasing investor interest and a narrowing valuation gap. The company’s unique positioning in a growing market, combined with initial results following their commercialization efforts, and a current undervaluation leads to bullish expectations for CY25. Additionally, considering the strong technology base, IP portfolio, and low valuation, there is a significant chance STKH could become target for a strategic takeover.
With STKH’s undoubted commitment to innovation and commercialization the company is certainly one to watch for investors and foodies alike.