MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
MGPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 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. This makes MGPI very considerable for value investing!
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
The Return On Assets of MGPI (2.44%) is worse than 62.50% of its industry peers.
MGPI has a Return On Equity (4.11%) which is comparable to the rest of the industry.
MGPI has a Return On Invested Capital (7.12%) which is in line with its industry peers.
MGPI had an Average Return On Invested Capital over the past 3 years of 8.14%. This is below the industry average of 12.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 4.11% | ||
| ROIC | 7.12% |
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 of 4.87% is in line compared to the rest of the industry. MGPI outperforms 46.88% of its industry peers.
In the last couple of years the Profit Margin of MGPI has declined.
MGPI has a Operating Margin of 21.10%. This is in the better half of the industry: MGPI outperforms 68.75% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
MGPI has a Gross Margin (40.69%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MGPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.1% | ||
| PM (TTM) | 4.87% | ||
| GM | 40.69% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGPI is still creating some value.
MGPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGPI has more shares outstanding
MGPI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.45 indicates that MGPI is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGPI has a Altman-Z score (2.45) which is comparable to the rest of the industry.
MGPI has a debt to FCF ratio of 10.40. This is a negative value and a sign of low solvency as MGPI would need 10.40 years to pay back of all of its debts.
MGPI has a Debt to FCF ratio (10.40) which is comparable to the rest of the industry.
MGPI has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
MGPI's Debt to Equity ratio of 0.38 is fine compared to the rest of the industry. MGPI outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 10.4 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.06
WACC6.7%
2.3 Liquidity
A Current Ratio of 5.91 indicates that MGPI has no problem at all paying its short term obligations.
The Current ratio of MGPI (5.91) is better than 100.00% of its industry peers.
MGPI has a Quick Ratio of 1.96. This is a normal value and indicates that MGPI is financially healthy and should not expect problems in meeting its short term obligations.
MGPI's Quick ratio of 1.96 is amongst the best of the industry. MGPI outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.10% over the past year.
Measured over the past years, MGPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.96% on average per year.
Looking at the last year, MGPI shows a very negative growth in Revenue. The Revenue has decreased by -15.88% in the last year.
The Revenue has been growing by 14.17% on average over the past years. This is quite good.
EPS 1Y (TTM)15.1%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%5.37%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-15.87%
3.2 Future
The Earnings Per Share is expected to decrease by -16.58% 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 -7.20% yearly.
EPS Next Y-53.72%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
EPS Next 5YN/A
Revenue Next Year-24.34%
Revenue Next 2Y-13.92%
Revenue Next 3Y-7.2%
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.
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
MGPI is valuated cheaply with a Price/Earnings ratio of 5.18.
MGPI's Price/Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 100.00% of the companies in the same industry.
MGPI is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.18 indicates a reasonable valuation of MGPI.
Based on the Price/Forward Earnings ratio, MGPI is valued cheaper than 96.88% of the companies in the same industry.
MGPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.18 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
96.88% of the companies in the same industry are more expensive than MGPI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.97 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as MGPI's earnings are expected to decrease with -16.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 3.01, MGPI has a dividend in line with its industry peers.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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
31.00% of the earnings are spent on dividend by MGPI. This is a low number and sustainable payout ratio.
DP31%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
29.19
+0.22 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.42%
Inst Owner Change-0.4%
Ins Owners27.45%
Ins Owner Change0.76%
Market Cap620.87M
Analysts80
Price Target40.97 (40.36%)
Short Float %22.39%
Short Ratio7.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP31%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.71%
Min EPS beat(2)1.04%
Max EPS beat(2)2.39%
EPS beat(4)4
Avg EPS beat(4)4.71%
Min EPS beat(4)1.04%
Max EPS beat(4)8.74%
EPS beat(8)7
Avg EPS beat(8)0.86%
EPS beat(12)11
Avg EPS beat(12)10.52%
EPS beat(16)15
Avg EPS beat(16)31.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)7
Avg Revenue beat(12)2.05%
Revenue beat(16)11
Avg Revenue beat(16)4.71%
PT rev (1m)-11.72%
PT rev (3m)-36.24%
EPS NQ rev (1m)-10.91%
EPS NQ rev (3m)-45.34%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-31.18%
Revenue NQ rev (1m)-3.93%
Revenue NQ rev (3m)-13.6%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-10.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.18 | ||
| Fwd PE | 11.18 | ||
| P/S | 0.88 | ||
| P/FCF | 19.97 | ||
| P/OCF | 6.07 | ||
| P/B | 0.74 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 5.39 |
EPS(TTM)5.64
EY19.32%
EPS(NY)2.61
Fwd EY8.94%
FCF(TTM)1.46
FCFY5.01%
OCF(TTM)4.81
OCFY16.47%
SpS33.08
BVpS39.22
TBVpS14.95
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 4.11% | ||
| ROCE | 11.3% | ||
| ROIC | 7.12% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 12.11% | ||
| OM | 21.1% | ||
| PM (TTM) | 4.87% | ||
| GM | 40.69% | ||
| FCFM | 4.42% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 10.4 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 323.71% | ||
| Cap/Sales | 10.12% | ||
| Interest Coverage | 14.04 | ||
| Cash Conversion | 60.01% | ||
| Profit Quality | 90.69% | ||
| Current Ratio | 5.91 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 2.45 |
F-Score6
WACC6.7%
ROIC/WACC1.06
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)15.1%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%5.37%
EPS Next Y-53.72%
EPS Next 2Y-27.18%
EPS Next 3Y-16.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-15.87%
Revenue Next Year-24.34%
Revenue Next 2Y-13.92%
Revenue Next 3Y-7.2%
Revenue Next 5YN/A
EBIT growth 1Y-12.67%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-33.63%
EBIT Next 3Y-6.88%
EBIT Next 5YN/A
FCF growth 1Y9.05%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y22.07%
OCF growth 3Y5.04%
OCF growth 5Y38.99%