MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
Overall MGPI gets a fundamental rating of 5 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 valued quite cheap, but it does not seem to be growing.
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.
MGPI had positive earnings in each of the past 5 years.
In the past 5 years MGPI always reported a positive cash flow from operatings.
1.2 Ratios
MGPI's Return On Assets of 0.79% is on the low side compared to the rest of the industry. MGPI is outperformed by 65.63% of its industry peers.
The Return On Equity of MGPI (1.31%) is worse than 65.63% of its industry peers.
The Return On Invested Capital of MGPI (6.24%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 11.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROIC | 6.24% |
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
The Profit Margin of MGPI (1.66%) is worse than 65.63% of its industry peers.
In the last couple of years the Profit Margin of MGPI has declined.
Looking at the Operating Margin, with a value of 18.11%, MGPI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
MGPI's Operating Margin has improved in the last couple of years.
MGPI has a Gross Margin (40.76%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MGPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% |
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.
MGPI has less shares outstanding than it did 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 2.34. 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 (2.34) which is comparable to the rest of the industry.
MGPI has a debt to FCF ratio of 5.10. This is a neutral value as MGPI would need 5.10 years to pay back of all of its debts.
MGPI has a better Debt to FCF ratio (5.10) than 78.13% of its industry peers.
MGPI has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
MGPI has a Debt to Equity ratio of 0.35. This is in the better half of the industry: MGPI outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.91
WACC6.89%
2.3 Liquidity
A Current Ratio of 2.83 indicates that MGPI has no problem at all paying its short term obligations.
MGPI has a Current ratio of 2.83. This is in the better half of the industry: MGPI outperforms 75.00% of its industry peers.
MGPI has a Quick Ratio of 2.83. This is a bad value and indicates that MGPI is not financially healthy enough and could expect problems in meeting its short term obligations.
MGPI has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MGPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.64%.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
MGPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.77%.
The Revenue has been growing by 14.17% on average over the past years. This is quite good.
EPS 1Y (TTM)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
3.2 Future
MGPI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.71% yearly.
The Revenue is expected to decrease by -7.11% on average over the next years.
EPS Next Y-54.96%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
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 6.30, the valuation of MGPI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MGPI is valued rather cheaply.
MGPI is valuated reasonably with a Price/Forward Earnings ratio of 11.12.
Based on the Price/Forward Earnings ratio, MGPI is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, MGPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 90.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
A cheap valuation may be justified as MGPI's earnings are expected to decrease with -16.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, MGPI has a reasonable but not impressive dividend return.
MGPI's Dividend Yield is comparable with the industry average which is at 3.08.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
96.79% of the earnings are spent on dividend by MGPI. This is not a sustainable payout ratio.
The Dividend Rate of MGPI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP96.79%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
31.06
-0.45 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners73.73%
Inst Owner Change0%
Ins Owners26.99%
Ins Owner Change1.47%
Market Cap660.65M
Analysts80
Price Target39.78 (28.07%)
Short Float %9.75%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP96.79%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-2.9%
Max EPS beat(2)2.39%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-2.9%
Max EPS beat(4)8.74%
EPS beat(8)6
Avg EPS beat(8)-2.45%
EPS beat(12)10
Avg EPS beat(12)4.15%
EPS beat(16)14
Avg EPS beat(16)27.26%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)1.19%
Revenue beat(16)10
Avg Revenue beat(16)4.17%
PT rev (1m)0%
PT rev (3m)-9.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.01 | ||
| P/FCF | 11.34 | ||
| P/OCF | 5.4 | ||
| P/B | 0.8 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)4.93
EY15.87%
EPS(NY)2.79
Fwd EY8.99%
FCF(TTM)2.74
FCFY8.82%
OCF(TTM)5.75
OCFY18.52%
SpS30.78
BVpS38.94
TBVpS14.71
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROCE | 9.92% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 11.31% | ||
| OM | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% | ||
| FCFM | 8.9% |
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%
ROICexcg growth 3Y-7.74%
ROICexcg 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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 284.7% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 535.21% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.34 |
F-Score6
WACC6.89%
ROIC/WACC0.91
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)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
EPS Next Y-54.96%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
Revenue Next 5YN/A
EBIT growth 1Y-24.7%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-34.35%
EBIT Next 3Y-7%
EBIT Next 5YN/A
FCF growth 1Y179.95%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y70.55%
OCF growth 3Y5.04%
OCF growth 5Y38.99%