MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MGPI. MGPI was compared to 32 industry peers in the Beverages industry. MGPI has only an average score on both its financial health and profitability. MGPI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MGPI was profitable.
In the past year MGPI had a positive cash flow from operations.
MGPI had positive earnings in each of the past 5 years.
MGPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MGPI (0.79%) is worse than 65.63% of its industry peers.
The Return On Equity of MGPI (1.31%) is worse than 65.63% of its industry peers.
MGPI has a Return On Invested Capital (6.24%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 11.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROIC | 6.24% |
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
MGPI has a worse Profit Margin (1.66%) than 65.63% of its industry peers.
In the last couple of years the Profit Margin of MGPI has declined.
MGPI has a better Operating Margin (18.11%) than 68.75% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
MGPI has a Gross Margin of 40.76%. 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 | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% |
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.
Compared to 1 year ago, MGPI has less shares outstanding
Compared to 5 years ago, MGPI has more shares outstanding
Compared to 1 year ago, MGPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 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 2.34, MGPI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of MGPI is 5.10, which is a neutral value as it means it would take MGPI, 5.10 years of fcf income to pay off all of its debts.
MGPI has a better Debt to FCF ratio (5.10) than 78.13% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that MGPI is not too dependend on debt financing.
The Debt to Equity ratio of MGPI (0.35) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.91
WACC6.89%
2.3 Liquidity
MGPI has a Current Ratio of 2.83. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
MGPI's Current ratio of 2.83 is fine compared to the rest of the industry. MGPI outperforms 75.00% of its industry peers.
MGPI has a Quick Ratio of 2.83. This is a bad value and indicates that MGPI is not financially healthy enough and could expect problems in meeting its short term obligations.
MGPI has a Quick ratio of 0.76. This is comparable to the rest of the industry: MGPI outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.64% over the past year.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
Looking at the last year, MGPI shows a very negative growth in Revenue. The Revenue has decreased by -18.77% 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)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
3.2 Future
Based on estimates for the next years, MGPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.71% on average per year.
MGPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.11% yearly.
EPS Next Y-54.96%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
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
The Price/Earnings ratio is 6.30, which indicates a rather cheap valuation of MGPI.
Compared to the rest of the industry, the Price/Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MGPI is valued rather cheaply.
MGPI is valuated reasonably with a Price/Forward Earnings ratio of 11.12.
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.
MGPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
MGPI's earnings are expected to decrease with -16.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, MGPI has a dividend in line with its industry peers.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
MGPI pays out 96.79% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of MGPI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP96.79%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
31.06
-0.45 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners73.73%
Inst Owner Change0%
Ins Owners26.99%
Ins Owner Change1.47%
Market Cap660.65M
Analysts80
Price Target39.78 (28.07%)
Short Float %9.75%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP96.79%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-2.9%
Max EPS beat(2)2.39%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-2.9%
Max EPS beat(4)8.74%
EPS beat(8)6
Avg EPS beat(8)-2.45%
EPS beat(12)10
Avg EPS beat(12)4.15%
EPS beat(16)14
Avg EPS beat(16)27.26%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)1.19%
Revenue beat(16)10
Avg Revenue beat(16)4.17%
PT rev (1m)0%
PT rev (3m)-9.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.01 | ||
| P/FCF | 11.34 | ||
| P/OCF | 5.4 | ||
| P/B | 0.8 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)4.93
EY15.87%
EPS(NY)2.79
Fwd EY8.99%
FCF(TTM)2.74
FCFY8.82%
OCF(TTM)5.75
OCFY18.52%
SpS30.78
BVpS38.94
TBVpS14.71
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROCE | 9.92% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 11.31% | ||
| OM | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% | ||
| FCFM | 8.9% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 284.7% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 535.21% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.34 |
F-Score6
WACC6.89%
ROIC/WACC0.91
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)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
EPS Next Y-54.96%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
Revenue Next 5YN/A
EBIT growth 1Y-24.7%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-34.35%
EBIT Next 3Y-7%
EBIT Next 5YN/A
FCF growth 1Y179.95%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y70.55%
OCF growth 3Y5.04%
OCF growth 5Y38.99%