MGP INGREDIENTS INC (MGPI)
US55303J1060 - Common Stock
Overall MGPI gets a fundamental rating of 5 out of 10. We evaluated MGPI against 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 has a correct valuation and a medium growth rate.
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.
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 Return On Assets of 7.65%. This is in the better half of the industry: MGPI outperforms 60.61% of its industry peers.
The Return On Equity of MGPI (12.52%) is comparable to the rest of the industry.
MGPI has a Return On Invested Capital (10.19%) which is in line with its industry peers.
MGPI had an Average Return On Invested Capital over the past 3 years of 10.20%. This is below the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 12.52% | ||
| ROIC | 10.19% |
ROA(3y)8.57%
ROA(5y)9.72%
ROE(3y)13.7%
ROE(5y)14.61%
ROIC(3y)10.2%
ROIC(5y)11.33%
1.3 Margins
MGPI's Profit Margin of 12.73% is fine compared to the rest of the industry. MGPI outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of MGPI has grown nicely.
With a decent Operating Margin value of 20.32%, MGPI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MGPI's Operating Margin has improved in the last couple of years.
MGPI's Gross Margin of 36.42% is on the low side compared to the rest of the industry. MGPI is outperformed by 84.85% of its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.32% | ||
| PM (TTM) | 12.73% | ||
| GM | 36.42% |
OM growth 3Y14.05%
OM growth 5Y8.82%
PM growth 3Y7.85%
PM growth 5Y5.5%
GM growth 3Y13.4%
GM growth 5Y10.38%
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.
Compared to 1 year ago, MGPI has about the same amount of shares outstanding.
The number of shares outstanding for MGPI has been increased compared to 5 years ago.
The debt/assets ratio for MGPI is higher compared to a year ago.
2.2 Solvency
MGPI has an Altman-Z score of 3.86. This indicates that MGPI is financially healthy and has little risk of bankruptcy at the moment.
MGPI has a better Altman-Z score (3.86) than 63.64% of its industry peers.
The Debt to FCF ratio of MGPI is 10.07, which is on the high side as it means it would take MGPI, 10.07 years of fcf income to pay off all of its debts.
MGPI's Debt to FCF ratio of 10.07 is on the low side compared to the rest of the industry. MGPI is outperformed by 69.70% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that MGPI is not too dependend on debt financing.
MGPI has a better Debt to Equity ratio (0.33) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 10.07 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.24
WACC8.21%
2.3 Liquidity
MGPI has a Current Ratio of 4.51. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MGPI (4.51) is better than 93.94% of its industry peers.
A Quick Ratio of 1.47 indicates that MGPI should not have too much problems paying its short term obligations.
MGPI has a better Quick ratio (1.47) than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
MGPI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.65%.
Measured over the past years, MGPI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.69% on average per year.
Looking at the last year, MGPI shows a small growth in Revenue. The Revenue has grown by 6.92% in the last year.
The Revenue has been growing by 17.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.65%
EPS 3Y24.98%
EPS 5Y17.69%
EPS growth Q2Q-23.02%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y28.36%
Revenue growth 5Y17.34%
Revenue growth Q2Q-15.15%
3.2 Future
The Earnings Per Share is expected to grow by 19.57% on average over the next years. This is quite good.
The Revenue is expected to decrease by -1.96% on average over the next years.
EPS Next Y28.23%
EPS Next 2Y19.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.76%
Revenue Next 2Y-1.96%
Revenue Next 3YN/A
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 stable.
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 17.39, MGPI is valued on the expensive side.
Based on the Price/Earnings ratio, MGPI is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
MGPI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of MGPI can be described as reasonable.
MGPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 93.94% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, MGPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 11.37 |
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 81.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGPI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.48 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MGPI may justify a higher PE ratio.
A more expensive valuation may be justified as MGPI's earnings are expected to grow with 19.57% in the coming years.
PEG (NY)0.62
PEG (5Y)0.98
EPS Next 2Y19.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, MGPI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.57, MGPI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MGPI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of MGPI is nicely growing with an annual growth rate of 8.24%!
MGPI has been paying a dividend for at least 10 years, so it has a reliable track record.
MGPI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.24%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
10.03% of the earnings are spent on dividend by MGPI. This is a low number and sustainable payout ratio.
The dividend of MGPI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.03%
EPS Next 2Y19.57%
EPS Next 3YN/A
MGP INGREDIENTS INC
NASDAQ:MGPI (5/17/2024, 7:13:02 PM)
After market: 79.75 +0.1 (+0.13%)79.65
-1.18 (-1.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 11.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 12.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.32% | ||
| PM (TTM) | 12.73% | ||
| GM | 36.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.51 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.65%
EPS 3Y24.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.92%
Revenue growth 3Y28.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y