MGP INGREDIENTS INC (MGPI)
US55303J1060 - Common Stock
Taking everything into account, MGPI scores 6 out of 10 in our fundamental rating. MGPI was compared to 31 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. 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.
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 (7.40%) is better than 64.52% of its industry peers.
Looking at the Return On Equity, with a value of 11.65%, MGPI is in line with its industry, outperforming 51.61% of the companies in the same industry.
The Return On Invested Capital of MGPI (8.43%) 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 13.16%.
| 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
With a decent Profit Margin value of 14.44%, MGPI is doing good in the industry, outperforming 74.19% of the companies in the same industry.
In the last couple of years the Profit Margin of MGPI has grown nicely.
MGPI's Operating Margin of 20.26% is fine compared to the rest of the industry. MGPI outperforms 67.74% of its industry peers.
In the last couple of years the Operating Margin of MGPI has grown nicely.
With a Gross Margin value of 40.26%, MGPI is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
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
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 about the same amout of shares outstanding than it did 1 year ago.
MGPI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.06 indicates that MGPI is not in any danger for bankruptcy at the moment.
MGPI has a Altman-Z score of 3.06. This is comparable to the rest of the industry: MGPI outperforms 54.84% of its industry peers.
The Debt to FCF ratio of MGPI is 6.80, which is on the high side as it means it would take MGPI, 6.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.80, MGPI is doing good in the industry, outperforming 70.97% of the companies in the same industry.
MGPI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, MGPI is doing good in the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.8 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.07
WACC7.85%
2.3 Liquidity
A Current Ratio of 6.46 indicates that MGPI has no problem at all paying its short term obligations.
The Current ratio of MGPI (6.46) is better than 96.77% of its industry peers.
MGPI has a Quick Ratio of 1.94. This is a normal value and indicates that MGPI is financially healthy and should not expect problems in meeting its short term obligations.
MGPI has a Quick ratio of 1.94. This is amongst the best in the industry. MGPI outperforms 83.87% of its industry peers.
| 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 -1.13% on average over the next years.
MGPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.37% yearly.
EPS Next Y16.29%
EPS Next 2Y-7.41%
EPS Next 3Y-1.13%
EPS Next 5YN/A
Revenue Next Year-15.4%
Revenue Next 2Y-14.97%
Revenue Next 3Y-9.37%
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.
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
Based on the Price/Earnings ratio of 8.91, the valuation of MGPI can be described as reasonable.
100.00% of the companies in the same industry are more expensive than MGPI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.53, MGPI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.79, the valuation of MGPI can be described as reasonable.
Based on the Price/Forward Earnings ratio, MGPI is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
MGPI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGPI indicates a somewhat cheap valuation: MGPI is cheaper than 77.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.5 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
The 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.
PEG (NY)0.55
PEG (5Y)0.5
EPS Next 2Y-7.41%
EPS Next 3Y-1.13%
5. Dividend
5.1 Amount
MGPI has a yearly dividend return of 0.95%, which is pretty low.
In the last 3 months the price of MGPI has falen by -42.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.99, MGPI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, MGPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 Years13
5.3 Sustainability
MGPI pays out 10.02% of its income as dividend. This is a sustainable payout ratio.
DP10.02%
EPS Next 2Y-7.41%
EPS Next 3Y-1.13%
MGP INGREDIENTS INC
NASDAQ:MGPI (11/18/2024, 12:47:04 PM)
49.52
-0.13 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 11.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.55
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.4% | ||
| ROE | 11.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.26% | ||
| PM (TTM) | 14.44% | ||
| GM | 40.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.46 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.79%
EPS 3Y24.98%
EPS 5Y
EPS Q2Q%
EPS Next Y16.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.22%
Revenue growth 3Y28.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y