MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
MGPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Beverages industry. MGPI has only an average score on both its financial health and profitability. MGPI has a bad growth rate and is valued cheaply. This makes MGPI very considerable for value investing!
1. Profitability
1.1 Basic Checks
MGPI had positive earnings in the past year.
In the past year MGPI had a positive cash flow from operations.
In the past 5 years MGPI has always been profitable.
In the past 5 years MGPI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 7.40%, MGPI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
MGPI's Return On Equity of 11.65% is in line compared to the rest of the industry. MGPI outperforms 53.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.43%, MGPI is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MGPI is below the industry average of 13.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.4% | ||
| ROE | 11.65% | ||
| ROIC | 8.43% |
ROA(3y)8.57%
ROA(5y)9.72%
ROE(3y)13.7%
ROE(5y)14.61%
ROIC(3y)10.2%
ROIC(5y)11.33%
1.3 Margins
The Profit Margin of MGPI (14.44%) is better than 71.43% of its industry peers.
MGPI's Profit Margin has improved in the last couple of years.
MGPI has a better Operating Margin (20.26%) than 67.86% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
MGPI's Gross Margin of 40.26% is on the low side compared to the rest of the industry. MGPI is outperformed by 67.86% of its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.26% | ||
| PM (TTM) | 14.44% | ||
| GM | 40.26% |
OM growth 3Y14.05%
OM growth 5Y8.82%
PM growth 3Y7.85%
PM growth 5Y5.5%
GM growth 3Y13.4%
GM growth 5Y10.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MGPI is creating some value.
MGPI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MGPI has been increased compared to 5 years ago.
The debt/assets ratio for MGPI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that MGPI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.63, MGPI perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
MGPI has a debt to FCF ratio of 6.80. This is a slightly negative value and a sign of low solvency as MGPI would need 6.80 years to pay back of all of its debts.
MGPI's Debt to FCF ratio of 6.80 is in line compared to the rest of the industry. MGPI outperforms 57.14% of its industry peers.
MGPI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MGPI (0.31) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.8 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.15
WACC7.36%
2.3 Liquidity
MGPI has a Current Ratio of 6.46. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
MGPI's Current ratio of 6.46 is amongst the best of the industry. MGPI outperforms 100.00% of its industry peers.
A Quick Ratio of 1.94 indicates that MGPI should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.94, MGPI belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.46 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
MGPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.79%, which is quite impressive.
MGPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.69% yearly.
The Revenue has decreased by -9.22% in the past year.
Measured over the past years, MGPI shows a quite strong growth in Revenue. The Revenue has been growing by 17.34% on average per year.
EPS 1Y (TTM)25.79%
EPS 3Y24.98%
EPS 5Y17.69%
EPS Q2Q%122.41%
Revenue 1Y (TTM)-9.22%
Revenue growth 3Y28.36%
Revenue growth 5Y17.34%
Sales Q2Q%-23.7%
3.2 Future
The Earnings Per Share is expected to decrease by -0.70% on average over the next years.
The Revenue is expected to decrease by -6.55% on average over the next years.
EPS Next Y16.12%
EPS Next 2Y-15.07%
EPS Next 3Y-4.71%
EPS Next 5Y-0.7%
Revenue Next Year-15.4%
Revenue Next 2Y-15.32%
Revenue Next 3Y-9.89%
Revenue Next 5Y-6.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.79 indicates a rather cheap valuation of MGPI.
MGPI's Price/Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MGPI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.11 indicates a reasonable valuation of MGPI.
MGPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MGPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
MGPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MGPI may justify a higher PE ratio.
MGPI's earnings are expected to decrease with -4.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.36
PEG (5Y)0.33
EPS Next 2Y-15.07%
EPS Next 3Y-4.71%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MGPI has falen by -29.25%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MGPI's Dividend Yield is comparable with the industry average which is at 3.25.
Compared to the average S&P500 Dividend Yield of 2.27, MGPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of MGPI grows each year by 8.24%, which is quite nice.
MGPI has paid a dividend for at least 10 years, which is a reliable track record.
MGPI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.24%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
MGPI pays out 10.02% of its income as dividend. This is a sustainable payout ratio.
DP10.02%
EPS Next 2Y-15.07%
EPS Next 3Y-4.71%
32.19
-0.05 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner Change-5.93%
Ins Owners27.36%
Ins Owner Change0.27%
Market Cap706.57M
Analysts78.33
Price Target61.03 (89.59%)
Short Float %23.27%
Short Ratio8.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.49
Dividend Growth(5Y)8.24%
DP10.02%
Div Incr Years0
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)1.04%
Max EPS beat(2)8.74%
EPS beat(4)4
Avg EPS beat(4)6.01%
Min EPS beat(4)1.04%
Max EPS beat(4)8.74%
EPS beat(8)7
Avg EPS beat(8)2.6%
EPS beat(12)11
Avg EPS beat(12)13.21%
EPS beat(16)15
Avg EPS beat(16)32.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.57%
Revenue beat(8)3
Avg Revenue beat(8)0.04%
Revenue beat(12)7
Avg Revenue beat(12)2.62%
Revenue beat(16)10
Avg Revenue beat(16)4.6%
PT rev (1m)-5.03%
PT rev (3m)-38.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 9.11 | ||
| P/S | 0.96 | ||
| P/FCF | 16.58 | ||
| P/OCF | 6.5 | ||
| P/B | 0.77 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)5.56
EY17.27%
EPS(NY)3.53
Fwd EY10.98%
FCF(TTM)1.94
FCFY6.03%
OCF(TTM)4.95
OCFY15.38%
SpS33.61
BVpS41.66
TBVpS14.75
PEG (NY)0.36
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.4% | ||
| ROE | 11.65% | ||
| ROCE | 11.01% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.56% | ||
| ROICexgc | 15.34% | ||
| OM | 20.26% | ||
| PM (TTM) | 14.44% | ||
| GM | 40.26% | ||
| FCFM | 5.78% |
ROA(3y)8.57%
ROA(5y)9.72%
ROE(3y)13.7%
ROE(5y)14.61%
ROIC(3y)10.2%
ROIC(5y)11.33%
ROICexc(3y)10.5%
ROICexc(5y)11.73%
ROICexgc(3y)19.54%
ROICexgc(5y)17.16%
ROCE(3y)13.32%
ROCE(5y)14.78%
ROICexcg growth 3Y11.13%
ROICexcg growth 5Y3.69%
ROICexc growth 3Y-10.11%
ROICexc growth 5Y-8.7%
OM growth 3Y14.05%
OM growth 5Y8.82%
PM growth 3Y7.85%
PM growth 5Y5.5%
GM growth 3Y13.4%
GM growth 5Y10.38%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.8 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 298.35% | ||
| Cap/Sales | 8.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.33% | ||
| Profit Quality | 40.01% | ||
| Current Ratio | 6.46 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 2.63 |
F-Score8
WACC7.36%
ROIC/WACC1.15
Cap/Depr(3y)236.45%
Cap/Depr(5y)201.19%
Cap/Sales(3y)6.65%
Cap/Sales(5y)5.91%
Profit Quality(3y)37.36%
Profit Quality(5y)40.71%
High Growth Momentum
Growth
EPS 1Y (TTM)25.79%
EPS 3Y24.98%
EPS 5Y17.69%
EPS Q2Q%122.41%
EPS Next Y16.12%
EPS Next 2Y-15.07%
EPS Next 3Y-4.71%
EPS Next 5Y-0.7%
Revenue 1Y (TTM)-9.22%
Revenue growth 3Y28.36%
Revenue growth 5Y17.34%
Sales Q2Q%-23.7%
Revenue Next Year-15.4%
Revenue Next 2Y-15.32%
Revenue Next 3Y-9.89%
Revenue Next 5Y-6.55%
EBIT growth 1Y-3.75%
EBIT growth 3Y46.4%
EBIT growth 5Y27.69%
EBIT Next Year15.53%
EBIT Next 3Y-1.21%
EBIT Next 5Y0.8%
FCF growth 1Y-15.37%
FCF growth 3Y-5.28%
FCF growth 5Y63.64%
OCF growth 1Y21.14%
OCF growth 3Y16.3%
OCF growth 5Y20.14%