MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock
We assign a fundamental rating of 6 out of 10 to MGPI. MGPI was compared to 31 industry peers in the Beverages industry. MGPI has an average financial health and profitability rating. MGPI is valued quite cheap, but it does not seem to be growing. 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.
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
MGPI has a Return On Assets of 7.40%. This is comparable to the rest of the industry: MGPI outperforms 57.14% of its industry peers.
MGPI has a Return On Equity (11.65%) which is in line with its industry peers.
MGPI's Return On Invested Capital of 8.43% is in line compared to the rest of the industry. MGPI outperforms 50.00% of its industry peers.
MGPI had an Average Return On Invested Capital over the past 3 years of 10.20%. This is below the industry average of 13.61%.
| 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
MGPI has a better Profit Margin (14.44%) than 71.43% of its industry peers.
MGPI's Profit Margin has improved in the last couple of years.
MGPI has a Operating Margin of 20.26%. This is in the better half of the industry: MGPI outperforms 67.86% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 40.26%, MGPI is not doing good in the industry: 67.86% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGPI is still creating some value.
MGPI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGPI has more shares outstanding
MGPI has a worse debt/assets ratio than last year.
2.2 Solvency
MGPI has an Altman-Z score of 2.72. 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 (2.72) is comparable to the rest of the 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.
The Debt to FCF ratio of MGPI (6.80) is better than 67.86% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that MGPI is not too dependend on debt financing.
MGPI has a better Debt to Equity ratio (0.31) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.8 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.1
WACC7.64%
2.3 Liquidity
A Current Ratio of 6.46 indicates that MGPI has no problem at all paying its short term obligations.
MGPI has a Current ratio of 6.46. This is amongst the best in the industry. MGPI outperforms 100.00% 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.
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.
Looking at the last year, MGPI shows a decrease in Revenue. The Revenue has decreased by -9.22% in the last year.
The Revenue has been growing by 17.34% on average over the past years. This is quite good.
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
Based on estimates for the next years, MGPI will show a decrease in Earnings Per Share. The EPS will decrease by -0.70% on average per year.
Based on estimates for the next years, MGPI will show a decrease in Revenue. The Revenue will decrease by -6.55% on average per year.
EPS Next Y16.12%
EPS Next 2Y-12.02%
EPS Next 3Y-1.6%
EPS Next 5Y-0.7%
Revenue Next Year-15.4%
Revenue Next 2Y-15.25%
Revenue Next 3Y-9.86%
Revenue Next 5Y-6.55%
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
Based on the Price/Earnings ratio of 6.44, 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.
When comparing the Price/Earnings ratio of MGPI to the average of the S&P500 Index (28.29), we can say MGPI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.44, which indicates a very decent valuation of MGPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, MGPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 96.43% of the companies in the same industry.
MGPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGPI is cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.43 | ||
| EV/EBITDA | 6.18 |
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.
MGPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.4
PEG (5Y)0.36
EPS Next 2Y-12.02%
EPS Next 3Y-1.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, MGPI has a reasonable but not impressive dividend return.
The stock price of MGPI dropped by -37.60% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.21, MGPI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, MGPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of MGPI grows each year by 8.24%, which is quite nice.
MGPI has been paying a dividend for at least 10 years, so it has a reliable track record.
MGPI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.24%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
10.02% of the earnings are spent on dividend by MGPI. This is a low number and sustainable payout ratio.
DP10.02%
EPS Next 2Y-12.02%
EPS Next 3Y-1.6%
MGP INGREDIENTS INC
NASDAQ:MGPI (1/21/2025, 8:14:04 PM)
After market: 35.8 0 (0%)35.8
-0.25 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner Change0.58%
Ins Owners27.36%
Ins Owner Change0.43%
Market Cap785.81M
Analysts78.33
Price Target64.26 (79.5%)
Short Float %26.94%
Short Ratio7.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)-1.31%
PT rev (3m)-44.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 9.44 | ||
| P/S | 1.07 | ||
| P/FCF | 18.43 | ||
| P/OCF | 7.23 | ||
| P/B | 0.86 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)5.56
EY15.53%
EPS(NY)3.79
Fwd EY10.59%
FCF(TTM)1.94
FCFY5.42%
OCF(TTM)4.95
OCFY13.83%
SpS33.61
BVpS41.66
TBVpS14.75
PEG (NY)0.4
PEG (5Y)0.36
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 | 2.72 |
F-Score8
WACC7.64%
ROIC/WACC1.1
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-12.02%
EPS Next 3Y-1.6%
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-15.25%
Revenue Next 3Y-9.86%
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-0.53%
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%