MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
USA - NASDAQ:MGPI - US55303J1060 - Common Stock
24.55 USD
+0.32 (+1.32%)
24.55 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MGPI. MGPI was compared to 32 industry peers in the Beverages industry. MGPI has an average financial health and profitability rating. 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.
MGPI had a positive operating cash flow in the past year.
Each year in the past 5 years MGPI has 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 71.88% 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 71.88% of its industry peers.
With a Return On Invested Capital value of 4.98%, MGPI is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
MGPI had an Average Return On Invested Capital over the past 3 years of 8.14%. This is below the industry average of 10.90%.
| 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
In the last couple of years the Profit Margin of MGPI has declined.
MGPI's Operating Margin of 15.67% is fine compared to the rest of the industry. MGPI outperforms 68.75% of its industry peers.
MGPI's Operating Margin has improved in the last couple of years.
The Gross Margin of MGPI (39.71%) is worse than 65.63% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGPI is still creating some value.
Compared to 1 year ago, MGPI has less shares outstanding
The number of shares outstanding for MGPI has been increased compared to 5 years ago.
MGPI has a worse debt/assets ratio than last year.
2.2 Solvency
MGPI has an Altman-Z score of 2.11. 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.
With a Altman-Z score value of 2.11, MGPI perfoms like the industry average, outperforming 50.00% of the companies in the same 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 Debt to FCF ratio of 5.03. This is in the better half of the industry: MGPI outperforms 71.88% 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 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.8
WACC6.25%
2.3 Liquidity
A Current Ratio of 2.91 indicates that MGPI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.91, MGPI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that MGPI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, MGPI is in line with its industry, outperforming 43.75% of the companies in the same 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.
MGPI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
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 -17.72% on average per year.
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.
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 5.86 indicates a rather cheap valuation of MGPI.
Based on the Price/Earnings ratio, MGPI is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.40, MGPI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.88, the valuation of MGPI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 90.63% of the companies listed in the same industry.
MGPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
MGPI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGPI is cheaper than 90.63% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than MGPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
MGPI's earnings are expected to decrease with -17.72% in the coming years. This may justify a cheaper valuation.
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 1.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.05, MGPI has a dividend in line with its industry peers.
MGPI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
MGPI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-158.55%
EPS Next 2Y-29.98%
EPS Next 3Y-17.72%
24.55
+0.32 (+1.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.12%
Inst Owner Change1.36%
Ins Owners26.72%
Ins Owner Change2.01%
Market Cap522.67M
Analysts80
Price Target39.78 (62.04%)
Short Float %12.38%
Short Ratio8.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 | 5.86 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.86 | ||
| P/FCF | 8.84 | ||
| P/OCF | 4.05 | ||
| P/B | 0.62 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)4.19
EY17.07%
EPS(NY)2.77
Fwd EY11.26%
FCF(TTM)2.78
FCFY11.31%
OCF(TTM)6.06
OCFY24.69%
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 | 2.11 |
F-Score5
WACC6.25%
ROIC/WACC0.8
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%