MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
USA - NASDAQ:MGPI - US55303J1060 - Common Stock
24.85 USD
+0.71 (+2.94%)
24.85 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 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.
In the past year MGPI had a positive cash flow from operations.
Each year in the past 5 years MGPI has been profitable.
Each year in the past 5 years MGPI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MGPI (-1.09%) is worse than 72.73% of its industry peers.
The Return On Equity of MGPI (-1.75%) is worse than 72.73% of its industry peers.
The Return On Invested Capital of MGPI (4.43%) is worse than 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGPI is below the industry average of 10.75%.
| 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
In the last couple of years the Profit Margin of MGPI has declined.
The Operating Margin of MGPI (14.50%) is better than 60.61% of its industry peers.
In the last couple of years the Operating Margin of MGPI has grown nicely.
With a Gross Margin value of 38.98%, MGPI is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MGPI has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MGPI is creating some value.
Compared to 1 year ago, MGPI has less shares outstanding
The number of shares outstanding for MGPI has been increased compared to 5 years ago.
Compared to 1 year ago, MGPI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.09 indicates that MGPI is not a great score, but indicates 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 54.55% 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.
A Debt/Equity ratio of 0.31 indicates that MGPI is not too dependend on debt financing.
MGPI's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. MGPI outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.7
WACC6.36%
2.3 Liquidity
A Current Ratio of 2.78 indicates that MGPI has no problem at all paying its short term obligations.
The Current ratio of MGPI (2.78) is better than 78.79% of its industry peers.
MGPI has a Quick Ratio of 2.78. This is a bad value and indicates that MGPI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MGPI (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for MGPI have decreased strongly by -32.55% in the last year.
MGPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
MGPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.53%.
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)-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
The Revenue is expected to decrease by -6.99% on average over the next years.
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
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 6.63, the valuation of MGPI can be described as very cheap.
Based on the Price/Earnings ratio, MGPI is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MGPI to the average of the S&P500 Index (26.03), we can say MGPI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.89, the valuation of MGPI can be described as very reasonable.
MGPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 87.88% of the companies in the same industry.
MGPI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 8.89 |
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.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 7.16 |
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)0.33
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, MGPI has a dividend in line with its industry peers.
MGPI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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 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
The earnings of MGPI are negative and hence is the payout ratio. MGPI will probably not be able to sustain this dividend level.
DP-69.03%
EPS Next 2Y-29.6%
EPS Next 3Y-17.72%
24.85
+0.71 (+2.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.12%
Inst Owner Change-4%
Ins Owners26.72%
Ins Owner Change1.81%
Market Cap529.06M
Revenue(TTM)578.86M
Net Income(TTM)-15002000
Analysts80
Price Target38.93 (56.66%)
Short Float %11.98%
Short Ratio8.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)2.84%
EPS NQ rev (3m)-13.68%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.91 | ||
| P/FCF | 8.5 | ||
| P/OCF | 4.36 | ||
| P/B | 0.62 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)3.75
EY15.09%
EPS(NY)2.79
Fwd EY11.25%
FCF(TTM)2.92
FCFY11.76%
OCF(TTM)5.69
OCFY22.91%
SpS27.19
BVpS40.17
TBVpS16.04
PEG (NY)N/A
PEG (5Y)0.33
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
WACC6.36%
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%.