MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
USA - NASDAQ:MGPI - US55303J1060 - Common Stock
27.61 USD
+0.04 (+0.15%)
27.61 USD
0 (0%)
Overall MGPI gets a fundamental rating of 4 out of 10. We evaluated MGPI against 32 industry peers in the Beverages industry. MGPI has only an average score on both its financial health and profitability. MGPI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MGPI was profitable.
MGPI had a positive operating cash flow in the past year.
Each year in the past 5 years MGPI has been profitable.
In the past 5 years MGPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MGPI (-0.48%) is worse than 68.75% of its industry peers.
The Return On Equity of MGPI (-0.78%) is worse than 68.75% of its industry peers.
MGPI has a Return On Invested Capital of 4.98%. This is in the lower half of the industry: MGPI underperforms 65.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -0.78% | ||
| ROIC | 4.98% |
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's Profit Margin has declined in the last couple of years.
MGPI has a Operating Margin of 15.67%. This is in the better half of the industry: MGPI outperforms 68.75% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
MGPI has a Gross Margin of 39.71%. This is in the lower half of the industry: MGPI underperforms 71.88% of its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.67% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGPI is still 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.
MGPI has a worse debt/assets ratio than last year.
2.2 Solvency
MGPI has an Altman-Z score of 2.19. 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.
MGPI's Altman-Z score of 2.19 is in line compared to the rest of the industry. MGPI outperforms 53.13% of its industry peers.
MGPI has a debt to FCF ratio of 5.03. This is a neutral value as MGPI would need 5.03 years to pay back of all of its debts.
MGPI has a better Debt to FCF ratio (5.03) than 71.88% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that MGPI is not too dependend on debt financing.
MGPI's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. MGPI outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.77
WACC6.47%
2.3 Liquidity
A Current Ratio of 2.91 indicates that MGPI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.91, MGPI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that MGPI may have some problems paying its short term obligations.
MGPI's Quick ratio of 0.79 is in line compared to the rest of the industry. MGPI outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
MGPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.61%.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
MGPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.65%.
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)-13.61%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-43.27%
Revenue 1Y (TTM)-22.65%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-23.75%
3.2 Future
The Earnings Per Share is expected to decrease by -17.72% on average over the next years. This is quite bad
The Revenue is expected to decrease by -7.04% on average over the next years.
EPS Next Y-53.31%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue Next Year-23.86%
Revenue Next 2Y-13.91%
Revenue Next 3Y-7.04%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.59, which indicates a rather cheap valuation of MGPI.
Based on the Price/Earnings ratio, MGPI is valued cheaper than 96.88% of the companies in the same industry.
MGPI is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
MGPI is valuated reasonably with a Price/Forward Earnings ratio of 9.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, MGPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 90.63% of the companies in the same industry.
90.63% of the companies in the same industry are more expensive than MGPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
A cheap valuation may be justified as MGPI's earnings are expected to decrease with -17.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 2.84, MGPI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, MGPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of MGPI has a limited annual growth rate of 3.98%.
MGPI has been paying a dividend for at least 10 years, so it has 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
The earnings of MGPI are negative and hence is the payout ratio. MGPI will probably not be able to sustain this dividend level.
DP-158.55%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
27.61
+0.04 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners71.81%
Inst Owner Change-11.18%
Ins Owners27%
Ins Owner Change2.02%
Market Cap587.82M
Analysts80
Price Target39.78 (44.08%)
Short Float %12.33%
Short Ratio8.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP-158.55%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.83%
Min EPS beat(2)-2.9%
Max EPS beat(2)44.56%
EPS beat(4)3
Avg EPS beat(4)11.27%
Min EPS beat(4)-2.9%
Max EPS beat(4)44.56%
EPS beat(8)6
Avg EPS beat(8)1.5%
EPS beat(12)10
Avg EPS beat(12)6.18%
EPS beat(16)14
Avg EPS beat(16)23.11%
Revenue beat(2)1
Avg Revenue beat(2)1.17%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)10
Avg Revenue beat(16)3.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-35.49%
EPS NY rev (1m)3.65%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 9.98 | ||
| P/S | 0.96 | ||
| P/FCF | 9.94 | ||
| P/OCF | 4.55 | ||
| P/B | 0.7 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)4.19
EY15.18%
EPS(NY)2.77
Fwd EY10.02%
FCF(TTM)2.78
FCFY10.06%
OCF(TTM)6.06
OCFY21.95%
SpS28.62
BVpS39.54
TBVpS15.37
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -0.78% | ||
| ROCE | 7.91% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 8.9% | ||
| OM | 15.67% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% | ||
| FCFM | 9.7% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 303.97% | ||
| Cap/Sales | 11.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.19 |
F-Score5
WACC6.47%
ROIC/WACC0.77
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)-13.61%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-43.27%
EPS Next Y-53.31%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.65%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-23.75%
Revenue Next Year-23.86%
Revenue Next 2Y-13.91%
Revenue Next 3Y-7.04%
Revenue Next 5YN/A
EBIT growth 1Y-38.52%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-33.47%
EBIT Next 3Y-7.02%
EBIT Next 5YN/A
FCF growth 1Y572.5%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y95.3%
OCF growth 3Y5.04%
OCF growth 5Y38.99%