MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - US55303J1060 - Common Stock
30.16 USD
+1.2 (+4.13%)
30.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MGPI. MGPI was compared to 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.
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
MGPI has a worse Return On Assets (-0.48%) than 69.70% of its industry peers.
MGPI has a worse Return On Equity (-0.78%) than 69.70% of its industry peers.
MGPI has a Return On Invested Capital of 4.98%. This is in the lower half of the industry: MGPI underperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGPI is below the industry average of 11.01%.
| 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.
With a decent Operating Margin value of 15.67%, MGPI is doing good in the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Operating Margin of MGPI has grown nicely.
MGPI has a Gross Margin of 39.71%. This is in the lower half of the industry: MGPI underperforms 69.70% of its industry peers.
In the last couple of years the Gross Margin of MGPI has grown nicely.
| 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.
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 2.22 indicates that MGPI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MGPI (2.22) 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 has a better Debt to FCF ratio (5.03) than 78.79% 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.
The Debt to Equity ratio of MGPI (0.35) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.74
WACC6.73%
2.3 Liquidity
A Current Ratio of 2.91 indicates that MGPI has no problem at all paying its short term obligations.
MGPI's Current ratio of 2.91 is amongst the best of the industry. MGPI outperforms 81.82% of its industry peers.
A Quick Ratio of 0.79 indicates that MGPI may have some problems paying its short term obligations.
MGPI has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
MGPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.61%.
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 -22.65% 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)-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
Based on estimates for the next years, MGPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.71% on average per year.
Based on estimates for the next years, MGPI will show a decrease in Revenue. The Revenue will decrease by -7.14% on average per year.
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-13.8%
Revenue Next 3Y-7.14%
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
The Price/Earnings ratio is 7.20, which indicates a rather cheap valuation of MGPI.
MGPI's Price/Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 96.97% of the companies in the same industry.
MGPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of MGPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 93.94% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. MGPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGPI is valued cheaper than 87.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGPI is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 7.57 |
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)0.36
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
MGPI's Dividend Yield is comparable with the industry average which is at 2.80.
Compared to the average S&P500 Dividend Yield of 2.36, MGPI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 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
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-29.63%
EPS Next 3Y-16.71%
30.16
+1.2 (+4.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners71.81%
Inst Owner Change-11.19%
Ins Owners27%
Ins Owner Change2.31%
Market Cap642.11M
Analysts80
Price Target39.78 (31.9%)
Short Float %12.12%
Short Ratio6.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)-13.92%
EPS NQ rev (3m)-33.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.67%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)-12.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 10.8 | ||
| P/S | 1.05 | ||
| P/FCF | 10.86 | ||
| P/OCF | 4.98 | ||
| P/B | 0.76 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)4.19
EY13.89%
EPS(NY)2.79
Fwd EY9.26%
FCF(TTM)2.78
FCFY9.21%
OCF(TTM)6.06
OCFY20.1%
SpS28.62
BVpS39.54
TBVpS15.37
PEG (NY)N/A
PEG (5Y)0.36
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 | 2.22 |
F-Score5
WACC6.73%
ROIC/WACC0.74
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-54.96%
EPS Next 2Y-29.63%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.65%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-23.75%
Revenue Next Year-23.96%
Revenue Next 2Y-13.8%
Revenue Next 3Y-7.14%
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%