24.44 USD
-0.46 (-1.85%)
24.5 USD
+0.06 (+0.25%)
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 only an average score on both its financial health and profitability. MGPI has a bad growth rate and is valued cheaply.
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.
- In the past 5 years MGPI has always been profitable.
- In the past 5 years MGPI always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of -1.09%, MGPI is doing worse than 71.88% of the companies in the same industry.
- With a Return On Equity value of -1.75%, MGPI is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
- The Return On Invested Capital of MGPI (4.43%) is worse than 68.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MGPI is below the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.09% | ||
| ROE | -1.75% | ||
| ROIC | 4.43% |
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 has a better Operating Margin (14.50%) than 62.50% of its industry peers.
- MGPI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 38.98%, MGPI is doing worse than 71.88% of the companies in the same industry.
- In the last couple of years the Gross Margin of MGPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.5% | ||
| PM (TTM) | N/A | ||
| GM | 38.98% |
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
- 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.
- MGPI has a debt to FCF ratio of 4.32. This is a neutral value as MGPI would need 4.32 years to pay back of all of its debts.
- MGPI's Debt to FCF ratio of 4.32 is fine compared to the rest of the industry. MGPI outperforms 78.13% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that MGPI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.31, MGPI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.69
WACC6.4%
2.3 Liquidity
- A Current Ratio of 2.78 indicates that MGPI has no problem at all paying its short term obligations.
- MGPI has a Current ratio of 2.78. This is in the better half of the industry: MGPI outperforms 78.13% of its industry peers.
- MGPI has a Quick Ratio of 2.78. This is a bad value and indicates that MGPI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.69, MGPI is in line with its industry, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- MGPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.55%.
- 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 -21.53%.
- MGPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.17% yearly.
EPS 1Y (TTM)-32.55%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-34.11%
Revenue 1Y (TTM)-21.53%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-18.92%
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 -14.72% yearly.
- MGPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.51% yearly.
EPS Next Y-51.62%
EPS Next 2Y-32.03%
EPS Next 3Y-14.72%
EPS Next 5YN/A
Revenue Next Year-24.21%
Revenue Next 2Y-14.35%
Revenue Next 3Y-8.51%
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
- MGPI is valuated cheaply with a Price/Earnings ratio of 6.52.
- Based on the Price/Earnings ratio, MGPI is valued cheaper than 90.63% of the companies in the same industry.
- MGPI is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.38, the valuation of MGPI can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MGPI is valued cheaper than 90.63% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MGPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 9.38 |
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.
- 96.88% 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 | 8.36 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
- MGPI's earnings are expected to decrease with -14.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-32.03%
EPS Next 3Y-14.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.91%, MGPI has a reasonable but not impressive dividend return.
- MGPI's Dividend Yield is a higher than the industry average which is at 1.66.
- MGPI's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
- The earnings of MGPI are negative and hence is the payout ratio. MGPI will probably not be able to sustain this dividend level.
DP-69.03%
EPS Next 2Y-32.03%
EPS Next 3Y-14.72%
MGP INGREDIENTS INC / MGPI FAQ
What is the fundamental rating for MGPI stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGPI.
What is the valuation status of MGP INGREDIENTS INC (MGPI) stock?
ChartMill assigns a valuation rating of 7 / 10 to MGP INGREDIENTS INC (MGPI). This can be considered as Undervalued.
Can you provide the profitability details for MGP INGREDIENTS INC?
MGP INGREDIENTS INC (MGPI) has a profitability rating of 4 / 10.
What is the valuation of MGP INGREDIENTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MGP INGREDIENTS INC (MGPI) is 6.52 and the Price/Book (PB) ratio is 0.61.
How financially healthy is MGP INGREDIENTS INC?
The financial health rating of MGP INGREDIENTS INC (MGPI) is 5 / 10.