MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
USA - NASDAQ:MGPI - US55303J1060 - Common Stock
23.96 USD
-0.64 (-2.6%)
23.96 USD
0 (0%)
Overall MGPI gets a fundamental rating of 4 out of 10. We evaluated MGPI against 33 industry peers in the Beverages industry. MGPI has only an average score on both its financial health and profitability. MGPI has a bad growth rate and is valued cheaply.
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.
MGPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.09%, MGPI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
MGPI has a worse Return On Equity (-1.75%) than 66.67% of its industry peers.
The Return On Invested Capital of MGPI (4.43%) is worse than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 10.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.09% | ||
| ROE | -1.75% | ||
| ROIC | 4.43% |
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.
Looking at the Operating Margin, with a value of 14.50%, MGPI is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
In the last couple of years the Operating Margin of MGPI has grown nicely.
MGPI has a Gross Margin of 38.98%. This is in the lower half of the industry: MGPI underperforms 69.70% of its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.5% | ||
| PM (TTM) | N/A | ||
| GM | 38.98% |
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.
The number of shares outstanding for MGPI has been reduced compared to 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 2.09. 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 has a Altman-Z score of 2.09. This is comparable to the rest of the industry: MGPI outperforms 51.52% of its industry peers.
The Debt to FCF ratio of MGPI is 4.32, which is a neutral value as it means it would take MGPI, 4.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.32, MGPI is in the better half of the industry, outperforming 78.79% 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.7
WACC6.3%
2.3 Liquidity
MGPI has a Current Ratio of 2.78. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.78, MGPI is doing good in the industry, outperforming 78.79% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that MGPI may have some problems paying its short term obligations.
MGPI has a Quick ratio of 0.69. This is comparable to the rest of the industry: MGPI outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
MGPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.55%.
MGPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
The Revenue for MGPI has decreased by -21.53% in the past year. This is quite bad
MGPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.17% yearly.
EPS 1Y (TTM)-32.55%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-34.11%
Revenue 1Y (TTM)-21.53%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-18.92%
3.2 Future
The Earnings Per Share is expected to decrease by -17.72% on average over the next years. This is quite bad
MGPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.99% yearly.
EPS Next Y-52.48%
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue Next Year-23.91%
Revenue Next 2Y-14.01%
Revenue Next 3Y-6.99%
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 6.39, which indicates a rather cheap valuation of MGPI.
93.94% of the companies in the same industry are more expensive than MGPI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.51. MGPI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of MGPI can be described as reasonable.
Based on the Price/Forward Earnings ratio, MGPI is valued cheaper than 87.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. MGPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
84.85% of the companies in the same industry are more expensive than MGPI, based on the Enterprise Value to EBITDA ratio.
93.94% 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 | 8.2 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
MGPI's earnings are expected to decrease with -17.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MGPI has falen by -20.56%. 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 3.05, MGPI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, MGPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
MGPI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-69.03%
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
23.96
-0.64 (-2.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.12%
Inst Owner Change-9.65%
Ins Owners26.72%
Ins Owner Change1.59%
Market Cap510.11M
Revenue(TTM)578.86M
Net Income(TTM)-15.00M
Analysts80
Price Target38.93 (62.48%)
Short Float %10.36%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP-69.03%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.42%
Min EPS beat(2)38.27%
Max EPS beat(2)44.56%
EPS beat(4)3
Avg EPS beat(4)20.58%
Min EPS beat(4)-2.9%
Max EPS beat(4)44.56%
EPS beat(8)7
Avg EPS beat(8)13.29%
EPS beat(12)10
Avg EPS beat(12)8.59%
EPS beat(16)14
Avg EPS beat(16)15.05%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.27%
Max Revenue beat(2)2.35%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-0.01%
Max Revenue beat(4)2.35%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)6
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)2.14%
PT rev (1m)-2.14%
PT rev (3m)-2.14%
EPS NQ rev (1m)-14.55%
EPS NQ rev (3m)-18.78%
EPS NY rev (1m)1.78%
EPS NY rev (3m)5.49%
Revenue NQ rev (1m)-3.36%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.88 | ||
| P/FCF | 8.2 | ||
| P/OCF | 4.21 | ||
| P/B | 0.6 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)3.75
EY15.65%
EPS(NY)2.79
Fwd EY11.67%
FCF(TTM)2.92
FCFY12.2%
OCF(TTM)5.69
OCFY23.76%
SpS27.19
BVpS40.17
TBVpS16.04
PEG (NY)N/A
PEG (5Y)0.32
Graham Number58.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.09% | ||
| ROE | -1.75% | ||
| ROCE | 7.03% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 7.94% | ||
| OM | 14.5% | ||
| PM (TTM) | N/A | ||
| GM | 38.98% | ||
| FCFM | 10.75% |
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%
ROICexgc growth 3Y-7.74%
ROICexgc 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-Score4
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 250.93% | ||
| Cap/Sales | 10.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.09 |
F-Score4
WACC6.3%
ROIC/WACC0.7
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)-32.55%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-34.11%
EPS Next Y-52.48%
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.53%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-18.92%
Revenue Next Year-23.91%
Revenue Next 2Y-14.01%
Revenue Next 3Y-6.99%
Revenue Next 5YN/A
EBIT growth 1Y-43.86%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-33.47%
EBIT Next 3Y-7.02%
EBIT Next 5YN/A
FCF growth 1Y771.29%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y85.63%
OCF growth 3Y5.04%
OCF growth 5Y38.99%
MGP INGREDIENTS INC / MGPI FAQ
What is the fundamental rating for MGPI stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGPI.
What is the valuation status for MGPI stock?
ChartMill assigns a valuation rating of 7 / 10 to MGP INGREDIENTS INC (MGPI). This can be considered as Undervalued.
Can you provide the profitability details for MGP INGREDIENTS INC?
MGP INGREDIENTS INC (MGPI) has a profitability rating of 4 / 10.
What is the earnings growth outlook for MGP INGREDIENTS INC?
The Earnings per Share (EPS) of MGP INGREDIENTS INC (MGPI) is expected to decline by -52.48% in the next year.
How sustainable is the dividend of MGP INGREDIENTS INC (MGPI) stock?
The dividend rating of MGP INGREDIENTS INC (MGPI) is 4 / 10 and the dividend payout ratio is -69.03%.