MIDDLEBY CORP (MIDD) Stock Fundamental Analysis
NASDAQ:MIDD - Nasdaq - US5962781010 - Common Stock - Currency: USD
MIDD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. MIDD has only an average score on both its financial health and profitability. MIDD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MIDD was profitable.
MIDD had a positive operating cash flow in the past year.
In the past 5 years MIDD has always been profitable.
Each year in the past 5 years MIDD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.88%, MIDD is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
MIDD's Return On Equity of 11.78% is fine compared to the rest of the industry. MIDD outperforms 60.16% of its industry peers.
MIDD's Return On Invested Capital of 8.30% is in line compared to the rest of the industry. MIDD outperforms 58.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MIDD is below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.78% | ||
| ROIC | 8.3% |
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
The Profit Margin of MIDD (11.06%) is better than 73.44% of its industry peers.
MIDD's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.27%, MIDD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Operating Margin of MIDD has remained more or less at the same level.
MIDD has a better Gross Margin (37.94%) than 69.53% of its industry peers.
MIDD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.27% | ||
| PM (TTM) | 11.06% | ||
| GM | 37.94% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MIDD is destroying value.
Compared to 1 year ago, MIDD has about the same amount of shares outstanding.
The number of shares outstanding for MIDD has been reduced compared to 5 years ago.
The debt/assets ratio for MIDD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that MIDD is not in any danger for bankruptcy at the moment.
The Altman-Z score of MIDD (3.06) is comparable to the rest of the industry.
MIDD has a debt to FCF ratio of 3.76. This is a good value and a sign of high solvency as MIDD would need 3.76 years to pay back of all of its debts.
MIDD has a Debt to FCF ratio of 3.76. This is comparable to the rest of the industry: MIDD outperforms 58.59% of its industry peers.
MIDD has a Debt/Equity ratio of 0.65. This is a neutral value indicating MIDD is somewhat dependend on debt financing.
MIDD has a worse Debt to Equity ratio (0.65) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.89
WACC9.36%
2.3 Liquidity
MIDD has a Current Ratio of 2.81. This indicates that MIDD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MIDD (2.81) is better than 73.44% of its industry peers.
MIDD has a Quick Ratio of 1.79. 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 1.79 is fine compared to the rest of the industry. MIDD outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The earnings per share for MIDD have decreased by -1.76% in the last year.
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 -4.00%.
Measured over the past years, MIDD shows a small growth in Revenue. The Revenue has been growing by 5.54% on average per year.
EPS 1Y (TTM)-1.76%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%8.68%
Revenue 1Y (TTM)-4%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%0.53%
3.2 Future
Based on estimates for the next years, MIDD will show a small growth in Earnings Per Share. The EPS will grow by 7.81% on average per year.
MIDD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y5.12%
EPS Next 2Y7.26%
EPS Next 3Y8.57%
EPS Next 5Y7.81%
Revenue Next Year3.96%
Revenue Next 2Y3.93%
Revenue Next 3Y3.6%
Revenue Next 5Y3.33%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 13.50 indicates a correct valuation of MIDD.
Compared to the rest of the industry, the Price/Earnings ratio of MIDD indicates a somewhat cheap valuation: MIDD is cheaper than 78.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MIDD to the average of the S&P500 Index (28.64), we can say MIDD is valued rather cheaply.
MIDD is valuated correctly with a Price/Forward Earnings ratio of 12.85.
81.25% of the companies in the same industry are more expensive than MIDD, based on the Price/Forward Earnings ratio.
MIDD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MIDD is valued a bit cheaper than 65.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MIDD is valued cheaper than 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 10.28 |
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)2.64
PEG (5Y)1.96
EPS Next 2Y7.26%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
MIDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.16
+0.72 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners110.42%
Inst Owner Change-1.86%
Ins Owners1.26%
Ins Owner Change1.87%
Market Cap6.88B
Analysts76
Price Target196.69 (53.47%)
Short Float %5.88%
Short Ratio3.74
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)1
Avg EPS beat(2)2.11%
Min EPS beat(2)-7.73%
Max EPS beat(2)11.96%
EPS beat(4)2
Avg EPS beat(4)-1.07%
Min EPS beat(4)-10.12%
Max EPS beat(4)11.96%
EPS beat(8)5
Avg EPS beat(8)1.93%
EPS beat(12)7
Avg EPS beat(12)1.13%
EPS beat(16)9
Avg EPS beat(16)1.06%
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-6.61%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-4.09%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)-0.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.13%
Revenue beat(12)2
Avg Revenue beat(12)-2.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)23.72%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-2.53%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.77 | ||
| P/FCF | 10.79 | ||
| P/OCF | 10.01 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.28 |
EPS(TTM)9.49
EY7.4%
EPS(NY)9.98
Fwd EY7.78%
FCF(TTM)11.88
FCFY9.27%
OCF(TTM)12.8
OCFY9.99%
SpS72.23
BVpS67.82
TBVpS-9.15
PEG (NY)2.64
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.78% | ||
| ROCE | 10.97% | ||
| ROIC | 8.3% | ||
| ROICexc | 9.3% | ||
| ROICexgc | 32.77% | ||
| OM | 18.27% | ||
| PM (TTM) | 11.06% | ||
| GM | 37.94% | ||
| FCFM | 16.45% |
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-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 38.84% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 7.25 | ||
| Cash Conversion | 82.25% | ||
| Profit Quality | 148.78% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 3.06 |
F-Score7
WACC9.36%
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)-1.76%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%8.68%
EPS Next Y5.12%
EPS Next 2Y7.26%
EPS Next 3Y8.57%
EPS Next 5Y7.81%
Revenue 1Y (TTM)-4%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%0.53%
Revenue Next Year3.96%
Revenue Next 2Y3.93%
Revenue Next 3Y3.6%
Revenue Next 5Y3.33%
EBIT growth 1Y-2.63%
EBIT growth 3Y10.34%
EBIT growth 5Y6.38%
EBIT Next Year25.85%
EBIT Next 3Y12.39%
EBIT Next 5YN/A
FCF growth 1Y17.65%
FCF growth 3Y19.69%
FCF growth 5Y14.02%
OCF growth 1Y9.23%
OCF growth 3Y17.5%
OCF growth 5Y12.72%