MIDDLEBY CORP (MIDD) Stock Fundamental Analysis
NASDAQ:MIDD - Nasdaq - US5962781010 - Common Stock - Currency: USD
Taking everything into account, MIDD scores 5 out of 10 in our fundamental rating. MIDD was compared to 128 industry peers in the Machinery industry. Both the profitability and the financial health of MIDD get a neutral evaluation. Nothing too spectacular is happening here. MIDD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MIDD was profitable.
In the past year MIDD had a positive cash flow from operations.
MIDD had positive earnings in each of the past 5 years.
Each year in the past 5 years MIDD had a positive operating cash flow.
1.2 Ratios
MIDD has a better Return On Assets (5.87%) than 61.72% of its industry peers.
With a decent Return On Equity value of 11.64%, MIDD is doing good in the industry, outperforming 60.94% of the companies in the same industry.
MIDD has a Return On Invested Capital (8.26%) which is comparable to the rest of the industry.
MIDD had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROIC | 8.26% |
ROA(3y)6.01%
ROA(5y)5.93%
ROE(3y)13.24%
ROE(5y)13.96%
ROIC(3y)8.58%
ROIC(5y)7.78%
1.3 Margins
MIDD's Profit Margin of 11.26% is fine compared to the rest of the industry. MIDD outperforms 78.91% of its industry peers.
MIDD's Profit Margin has been stable in the last couple of years.
MIDD has a Operating Margin of 18.44%. This is amongst the best in the industry. MIDD outperforms 84.38% of its industry peers.
MIDD's Operating Margin has been stable in the last couple of years.
MIDD has a Gross Margin of 38.13%. This is in the better half of the industry: MIDD outperforms 70.31% of its industry peers.
In the last couple of years the Gross Margin of MIDD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.44% | ||
| PM (TTM) | 11.26% | ||
| GM | 38.13% |
OM growth 3Y4.07%
OM growth 5Y0.8%
PM growth 3Y-9.72%
PM growth 5Y-1.46%
GM growth 3Y1.06%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
MIDD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MIDD has about the same amount of shares outstanding.
MIDD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MIDD has been reduced compared to a year ago.
2.2 Solvency
MIDD has an Altman-Z score of 3.23. This indicates that MIDD is financially healthy and has little risk of bankruptcy at the moment.
MIDD has a Altman-Z score (3.23) which is comparable to the rest of the industry.
MIDD has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as MIDD would need 3.87 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.87, MIDD perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that MIDD is somewhat dependend on debt financing.
MIDD has a worse Debt to Equity ratio (0.63) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.89
WACC9.31%
2.3 Liquidity
A Current Ratio of 2.72 indicates that MIDD has no problem at all paying its short term obligations.
MIDD's Current ratio of 2.72 is fine compared to the rest of the industry. MIDD outperforms 71.09% of its industry peers.
MIDD has a Quick Ratio of 1.73. This is a normal value and indicates that MIDD is financially healthy and should not expect problems in meeting its short term obligations.
MIDD's Quick ratio of 1.73 is fine compared to the rest of the industry. MIDD outperforms 72.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
MIDD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.42%.
Measured over the past 5 years, MIDD shows a small growth in Earnings Per Share. The EPS has been growing by 6.89% on average per year.
MIDD shows a decrease in Revenue. In the last year, the revenue decreased by -2.56%.
The Revenue has been growing slightly by 5.54% on average over the past years.
EPS 1Y (TTM)3.42%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%10.05%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 9.08% on average over the next years. This is quite good.
MIDD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.95% yearly.
EPS Next Y1.84%
EPS Next 2Y5.91%
EPS Next 3Y8.04%
EPS Next 5Y9.08%
Revenue Next Year1.4%
Revenue Next 2Y2.47%
Revenue Next 3Y3%
Revenue Next 5Y2.95%
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 accelerating.
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 15.44, the valuation of MIDD can be described as correct.
Based on the Price/Earnings ratio, MIDD is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
MIDD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.05, which indicates a correct valuation of MIDD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MIDD indicates a somewhat cheap valuation: MIDD is cheaper than 77.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MIDD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
MIDD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MIDD is cheaper than 66.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MIDD indicates a rather cheap valuation: MIDD is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.97 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MIDD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.39
PEG (5Y)2.24
EPS Next 2Y5.91%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
No dividends for MIDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.5
-0.66 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.37%
Inst Owner Change-0.01%
Ins Owners1.36%
Ins Owner Change4.64%
Market Cap8.00B
Analysts76
Price Target179.86 (20.31%)
Short Float %7.02%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.13%
Min EPS beat(2)4.3%
Max EPS beat(2)11.96%
EPS beat(4)3
Avg EPS beat(4)2.53%
Min EPS beat(4)-7.73%
Max EPS beat(4)11.96%
EPS beat(8)5
Avg EPS beat(8)1.21%
EPS beat(12)8
Avg EPS beat(12)1.55%
EPS beat(16)9
Avg EPS beat(16)0.83%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-4.07%
Revenue beat(12)1
Avg Revenue beat(12)-3.03%
Revenue beat(16)3
Avg Revenue beat(16)-2.29%
PT rev (1m)-4.51%
PT rev (3m)-8.56%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-7.79%
EPS NY rev (1m)1.08%
EPS NY rev (3m)-4.96%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.05 | ||
| P/S | 2.07 | ||
| P/FCF | 12.97 | ||
| P/OCF | 11.64 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.54 |
EPS(TTM)9.68
EY6.47%
EPS(NY)10.64
Fwd EY7.12%
FCF(TTM)11.53
FCFY7.71%
OCF(TTM)12.85
OCFY8.59%
SpS72.08
BVpS69.74
TBVpS-7.85
PEG (NY)8.39
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROCE | 10.91% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 33.2% | ||
| OM | 18.44% | ||
| PM (TTM) | 11.26% | ||
| GM | 38.13% | ||
| FCFM | 16% |
ROA(3y)6.01%
ROA(5y)5.93%
ROE(3y)13.24%
ROE(5y)13.96%
ROIC(3y)8.58%
ROIC(5y)7.78%
ROICexc(3y)9.12%
ROICexc(5y)8.23%
ROICexgc(3y)32.98%
ROICexgc(5y)32.85%
ROCE(3y)11.34%
ROCE(5y)10.28%
ROICexcg growth 3Y-1.32%
ROICexcg growth 5Y-3.17%
ROICexc growth 3Y7.22%
ROICexc growth 5Y0.39%
OM growth 3Y4.07%
OM growth 5Y0.8%
PM growth 3Y-9.72%
PM growth 5Y-1.46%
GM growth 3Y1.06%
GM growth 5Y0.35%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 55.48% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 7.52 | ||
| Cash Conversion | 82.01% | ||
| Profit Quality | 142.01% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 3.23 |
F-Score8
WACC9.31%
ROIC/WACC0.89
Cap/Depr(3y)51.59%
Cap/Depr(5y)46.78%
Cap/Sales(3y)1.72%
Cap/Sales(5y)1.68%
Profit Quality(3y)114.73%
Profit Quality(5y)130.65%
High Growth Momentum
Growth
EPS 1Y (TTM)3.42%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%10.05%
EPS Next Y1.84%
EPS Next 2Y5.91%
EPS Next 3Y8.04%
EPS Next 5Y9.08%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%-2.19%
Revenue Next Year1.4%
Revenue Next 2Y2.47%
Revenue Next 3Y3%
Revenue Next 5Y2.95%
EBIT growth 1Y0.98%
EBIT growth 3Y10.34%
EBIT growth 5Y6.38%
EBIT Next Year17.27%
EBIT Next 3Y8.92%
EBIT Next 5YN/A
FCF growth 1Y72.24%
FCF growth 3Y19.69%
FCF growth 5Y14.02%
OCF growth 1Y56.18%
OCF growth 3Y17.5%
OCF growth 5Y12.72%