MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
Taking everything into account, MGPI scores 5 out of 10 in our fundamental rating. MGPI was compared to 32 industry peers in the Beverages industry. Both the profitability and the financial health of MGPI get a neutral evaluation. Nothing too spectacular is happening here. MGPI has a bad growth rate and is valued cheaply. With these ratings, MGPI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MGPI was profitable.
MGPI had a positive operating cash flow in the past year.
MGPI had positive earnings in each of the past 5 years.
In the past 5 years MGPI always reported a positive cash flow from operatings.
1.2 Ratios
MGPI has a Return On Assets of 2.44%. This is in the lower half of the industry: MGPI underperforms 62.50% of its industry peers.
MGPI has a Return On Equity of 4.11%. This is comparable to the rest of the industry: MGPI outperforms 40.63% of its industry peers.
With a Return On Invested Capital value of 7.12%, MGPI perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 12.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 4.11% | ||
| ROIC | 7.12% |
ROA(3y)6.49%
ROA(5y)7.82%
ROE(3y)10.39%
ROE(5y)12.1%
ROIC(3y)8.14%
ROIC(5y)8.63%
1.3 Margins
Looking at the Profit Margin, with a value of 4.87%, MGPI is in line with its industry, outperforming 46.88% of the companies in the same industry.
MGPI's Profit Margin has declined in the last couple of years.
The Operating Margin of MGPI (21.10%) is better than 68.75% of its industry peers.
In the last couple of years the Operating Margin of MGPI has grown nicely.
MGPI has a Gross Margin of 40.69%. This is comparable to the rest of the industry: MGPI outperforms 40.63% of its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.1% | ||
| PM (TTM) | 4.87% | ||
| GM | 40.69% |
OM growth 3Y3.57%
OM growth 5Y10.14%
PM growth 3Y-30.4%
PM growth 5Y-14.42%
GM growth 3Y8.62%
GM growth 5Y14.05%
2. Health
2.1 Basic Checks
MGPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MGPI has less shares outstanding than it did 1 year ago.
MGPI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MGPI is higher compared to a year ago.
2.2 Solvency
MGPI has an Altman-Z score of 2.42. This is not the best score and indicates that MGPI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MGPI (2.42) is comparable to the rest of the industry.
The Debt to FCF ratio of MGPI is 10.40, which is on the high side as it means it would take MGPI, 10.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGPI (10.40) is comparable to the rest of the industry.
MGPI has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
MGPI has a better Debt to Equity ratio (0.38) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 10.4 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.07
WACC6.68%
2.3 Liquidity
MGPI has a Current Ratio of 5.91. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
MGPI's Current ratio of 5.91 is amongst the best of the industry. MGPI outperforms 100.00% of its industry peers.
MGPI has a Quick Ratio of 1.96. This is a normal value and indicates that MGPI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.96, MGPI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.10% over the past year.
Measured over the past years, MGPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.96% on average per year.
Looking at the last year, MGPI shows a very negative growth in Revenue. The Revenue has decreased by -15.88% in the last year.
Measured over the past years, MGPI shows a quite strong growth in Revenue. The Revenue has been growing by 14.17% on average per year.
EPS 1Y (TTM)15.1%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%5.37%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-15.87%
3.2 Future
MGPI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.58% yearly.
MGPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.24% yearly.
EPS Next Y-53.72%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
EPS Next 5YN/A
Revenue Next Year-24.03%
Revenue Next 2Y-13.48%
Revenue Next 3Y-7.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.98, the valuation of MGPI can be described as very cheap.
MGPI's Price/Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 100.00% of the companies in the same industry.
MGPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
A Price/Forward Earnings ratio of 10.76 indicates a reasonable valuation of MGPI.
MGPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 96.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.85. MGPI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.98 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 96.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
MGPI's earnings are expected to decrease with -16.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.72%.
In the last 3 months the price of MGPI has falen by -22.41%. 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 3.00.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of MGPI has a limited annual growth rate of 3.98%.
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)3.98%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
MGPI pays out 31.00% of its income as dividend. This is a sustainable payout ratio.
DP31%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
28.08
+0.18 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.42%
Inst Owner Change-0.4%
Ins Owners27.45%
Ins Owner Change0.76%
Market Cap597.26M
Analysts80
Price Target43.86 (56.2%)
Short Float %24.62%
Short Ratio7.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP31%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.71%
Min EPS beat(2)1.04%
Max EPS beat(2)2.39%
EPS beat(4)4
Avg EPS beat(4)4.71%
Min EPS beat(4)1.04%
Max EPS beat(4)8.74%
EPS beat(8)7
Avg EPS beat(8)0.86%
EPS beat(12)11
Avg EPS beat(12)10.52%
EPS beat(16)15
Avg EPS beat(16)31.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)7
Avg Revenue beat(12)2.05%
Revenue beat(16)11
Avg Revenue beat(16)4.71%
PT rev (1m)-5.49%
PT rev (3m)-31.75%
EPS NQ rev (1m)-12.69%
EPS NQ rev (3m)-45.34%
EPS NY rev (1m)-26.15%
EPS NY rev (3m)-31.18%
Revenue NQ rev (1m)-3.93%
Revenue NQ rev (3m)-13.6%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-10.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.98 | ||
| Fwd PE | 10.76 | ||
| P/S | 0.85 | ||
| P/FCF | 19.21 | ||
| P/OCF | 5.84 | ||
| P/B | 0.72 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)5.64
EY20.09%
EPS(NY)2.61
Fwd EY9.3%
FCF(TTM)1.46
FCFY5.21%
OCF(TTM)4.81
OCFY17.12%
SpS33.08
BVpS39.22
TBVpS14.95
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 4.11% | ||
| ROCE | 11.3% | ||
| ROIC | 7.12% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 12.11% | ||
| OM | 21.1% | ||
| PM (TTM) | 4.87% | ||
| GM | 40.69% | ||
| FCFM | 4.42% |
ROA(3y)6.49%
ROA(5y)7.82%
ROE(3y)10.39%
ROE(5y)12.1%
ROIC(3y)8.14%
ROIC(5y)8.63%
ROICexc(3y)8.36%
ROICexc(5y)8.97%
ROICexgc(3y)14.96%
ROICexgc(5y)14.4%
ROCE(3y)12.92%
ROCE(5y)13.71%
ROICexcg growth 3Y-7.74%
ROICexcg growth 5Y2.67%
ROICexc growth 3Y-3.39%
ROICexc growth 5Y-7.33%
OM growth 3Y3.57%
OM growth 5Y10.14%
PM growth 3Y-30.4%
PM growth 5Y-14.42%
GM growth 3Y8.62%
GM growth 5Y14.05%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 10.4 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 323.71% | ||
| Cap/Sales | 10.12% | ||
| Interest Coverage | 14.04 | ||
| Cash Conversion | 60.01% | ||
| Profit Quality | 90.69% | ||
| Current Ratio | 5.91 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 2.42 |
F-Score6
WACC6.68%
ROIC/WACC1.07
Cap/Depr(3y)261.61%
Cap/Depr(5y)237.02%
Cap/Sales(3y)7.51%
Cap/Sales(5y)7.01%
Profit Quality(3y)52.55%
Profit Quality(5y)57.29%
High Growth Momentum
Growth
EPS 1Y (TTM)15.1%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%5.37%
EPS Next Y-53.72%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-15.87%
Revenue Next Year-24.03%
Revenue Next 2Y-13.48%
Revenue Next 3Y-7.24%
Revenue Next 5YN/A
EBIT growth 1Y-12.67%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-33.63%
EBIT Next 3Y-6.88%
EBIT Next 5YN/A
FCF growth 1Y9.05%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y22.07%
OCF growth 3Y5.04%
OCF growth 5Y38.99%