MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
USA - NASDAQ:MGPI - US55303J1060 - Common Stock
23.94 USD
+0.14 (+0.59%)
Taking everything into account, MGPI scores 4 out of 10 in our fundamental rating. MGPI was compared to 33 industry peers in the Beverages industry. Both the profitability and the financial health of MGPI get a neutral evaluation. Nothing too spectacular is happening here. MGPI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MGPI had positive earnings in the past year.
MGPI had a positive operating cash flow in the past year.
In the past 5 years MGPI has always been profitable.
Each year in the past 5 years MGPI had a positive operating cash flow.
1.2 Ratios
MGPI has a worse Return On Assets (-0.48%) than 69.70% of its industry peers.
MGPI's Return On Equity of -0.78% is on the low side compared to the rest of the industry. MGPI is outperformed by 69.70% of its industry peers.
MGPI has a worse Return On Invested Capital (4.98%) than 66.67% of 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 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -0.78% | ||
| ROIC | 4.98% |
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 has declined in the last couple of years.
MGPI has a better Operating Margin (15.67%) than 69.70% of its industry peers.
In the last couple of years the Operating Margin of MGPI has grown nicely.
Looking at the Gross Margin, with a value of 39.71%, MGPI is doing worse than 66.67% of the companies in the same industry.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.67% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% |
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.
The number of shares outstanding for MGPI has been reduced compared to 1 year ago.
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 2.10 indicates that MGPI is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGPI has a Altman-Z score (2.10) which is comparable to the rest of the industry.
The Debt to FCF ratio of MGPI is 5.03, which is a neutral value as it means it would take MGPI, 5.03 years of fcf income to pay off all of its debts.
MGPI's Debt to FCF ratio of 5.03 is fine compared to the rest of the industry. MGPI outperforms 72.73% 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.
Looking at the Debt to Equity ratio, with a value of 0.35, MGPI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.79
WACC6.29%
2.3 Liquidity
MGPI has a Current Ratio of 2.91. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MGPI (2.91) is better than 84.85% of its industry peers.
MGPI has a Quick Ratio of 2.91. 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 (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for MGPI have decreased strongly by -13.61% in the last 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.
MGPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.65%.
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)-13.61%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-43.27%
Revenue 1Y (TTM)-22.65%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-23.75%
3.2 Future
The Earnings Per Share is expected to decrease by -17.72% 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 -7.04% yearly.
EPS Next Y-53.31%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue Next Year-23.86%
Revenue Next 2Y-13.91%
Revenue Next 3Y-7.04%
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
With a Price/Earnings ratio of 5.71, the valuation of MGPI can be described as very cheap.
Based on the Price/Earnings ratio, MGPI is valued cheaper than 93.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGPI to the average of the S&P500 Index (27.90), we can say MGPI is valued rather cheaply.
The Price/Forward Earnings ratio is 8.66, which indicates a very decent valuation of MGPI.
90.91% of the companies in the same industry are more expensive than MGPI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MGPI to the average of the S&P500 Index (23.36), we can say MGPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 87.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
A cheap valuation may be justified as MGPI's earnings are expected to decrease with -17.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MGPI has falen by -23.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MGPI's Dividend Yield is a higher than the industry average which is at 2.98.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of MGPI has a limited annual growth rate of 3.98%.
MGPI has paid a dividend for at least 10 years, which is 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
The earnings of MGPI are negative and hence is the payout ratio. MGPI will probably not be able to sustain this dividend level.
DP-158.55%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
NASDAQ:MGPI (10/7/2025, 3:51:08 PM)
23.94
+0.14 (+0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.12%
Inst Owner Change0%
Ins Owners26.72%
Ins Owner Change2.01%
Market Cap509.68M
Analysts80
Price Target39.78 (66.17%)
Short Float %12.38%
Short Ratio8.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP-158.55%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.83%
Min EPS beat(2)-2.9%
Max EPS beat(2)44.56%
EPS beat(4)3
Avg EPS beat(4)11.27%
Min EPS beat(4)-2.9%
Max EPS beat(4)44.56%
EPS beat(8)6
Avg EPS beat(8)1.5%
EPS beat(12)10
Avg EPS beat(12)6.18%
EPS beat(16)14
Avg EPS beat(16)23.11%
Revenue beat(2)1
Avg Revenue beat(2)1.17%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)10
Avg Revenue beat(16)3.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.84 | ||
| P/FCF | 8.62 | ||
| P/OCF | 3.95 | ||
| P/B | 0.61 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)4.19
EY17.5%
EPS(NY)2.77
Fwd EY11.55%
FCF(TTM)2.78
FCFY11.6%
OCF(TTM)6.06
OCFY25.32%
SpS28.62
BVpS39.54
TBVpS15.37
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -0.78% | ||
| ROCE | 7.91% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 8.9% | ||
| OM | 15.67% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% | ||
| FCFM | 9.7% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 303.97% | ||
| Cap/Sales | 11.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.1 |
F-Score5
WACC6.29%
ROIC/WACC0.79
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)-13.61%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-43.27%
EPS Next Y-53.31%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.65%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-23.75%
Revenue Next Year-23.86%
Revenue Next 2Y-13.91%
Revenue Next 3Y-7.04%
Revenue Next 5YN/A
EBIT growth 1Y-38.52%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-33.47%
EBIT Next 3Y-7.02%
EBIT Next 5YN/A
FCF growth 1Y572.5%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y95.3%
OCF growth 3Y5.04%
OCF growth 5Y38.99%