MGP INGREDIENTS INC (MGPI) Stock Fundamental Analysis
NASDAQ:MGPI - Nasdaq - US55303J1060 - Common Stock - Currency: USD
MGPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 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
Looking at the Return On Assets, with a value of 0.79%, MGPI is doing worse than 66.67% of the companies in the same industry.
MGPI has a worse Return On Equity (1.31%) than 69.70% of its industry peers.
MGPI has a Return On Invested Capital (6.24%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGPI is below the industry average of 11.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROIC | 6.24% |
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 of 1.66% is on the low side compared to the rest of the industry. MGPI is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of MGPI has declined.
With a decent Operating Margin value of 18.11%, 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 (40.76%) which is in line with its industry peers.
MGPI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% |
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
MGPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MGPI has been reduced compared to 1 year ago.
Compared to 5 years ago, MGPI has more shares outstanding
The debt/assets ratio for MGPI is higher compared to a year ago.
2.2 Solvency
MGPI has an Altman-Z score of 2.31. 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.
MGPI has a Altman-Z score (2.31) which is in line with its industry peers.
The Debt to FCF ratio of MGPI is 5.10, which is a neutral value as it means it would take MGPI, 5.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGPI (5.10) is better than 78.79% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that MGPI is not too dependend on debt financing.
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 | 5.1 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.91
WACC6.85%
2.3 Liquidity
MGPI has a Current Ratio of 2.83. This indicates that MGPI is financially healthy and has no problem in meeting its short term obligations.
MGPI's Current ratio of 2.83 is fine compared to the rest of the industry. MGPI outperforms 75.76% of its industry peers.
A Quick Ratio of 0.76 indicates that MGPI may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, MGPI perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MGPI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.64%.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
MGPI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.77%.
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)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
3.2 Future
The Earnings Per Share is expected to decrease by -16.71% on average over the next years. This is quite bad
Based on estimates for the next years, MGPI will show a decrease in Revenue. The Revenue will decrease by -7.11% on average per year.
EPS Next Y-54.96%
EPS Next 2Y-28.72%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
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 6.05 indicates a rather cheap valuation of MGPI.
MGPI's Price/Earnings ratio is rather cheap when compared to the industry. MGPI is cheaper than 93.94% 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 26.43.
The Price/Forward Earnings ratio is 10.42, which indicates a very decent valuation of MGPI.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.17. MGPI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
93.94% of the companies in the same industry are more expensive than MGPI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGPI indicates a rather cheap valuation: MGPI is cheaper than 87.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 6.46 |
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)0.3
EPS Next 2Y-28.72%
EPS Next 3Y-16.71%
5. Dividend
5.1 Amount
MGPI has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
MGPI's Dividend Yield is comparable with the industry average which is at 2.91.
MGPI's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
MGPI pays out 96.79% of its income as dividend. This is not a sustainable payout ratio.
MGPI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP96.79%
EPS Next 2Y-28.72%
EPS Next 3Y-16.71%
29.85
+0.27 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.42%
Inst Owner Change-0.95%
Ins Owners27.45%
Ins Owner Change1.9%
Market Cap634.91M
Analysts80
Price Target39.78 (33.27%)
Short Float %11.27%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.49
Dividend Growth(5Y)3.98%
DP96.79%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-2.9%
Max EPS beat(2)2.39%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-2.9%
Max EPS beat(4)8.74%
EPS beat(8)6
Avg EPS beat(8)-2.45%
EPS beat(12)10
Avg EPS beat(12)4.15%
EPS beat(16)14
Avg EPS beat(16)27.26%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)1.19%
Revenue beat(16)10
Avg Revenue beat(16)4.17%
PT rev (1m)-2.9%
PT rev (3m)-34.82%
EPS NQ rev (1m)-4.94%
EPS NQ rev (3m)-24%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-28.12%
Revenue NQ rev (1m)2.35%
Revenue NQ rev (3m)-8.14%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)-10.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.97 | ||
| P/FCF | 10.9 | ||
| P/OCF | 5.19 | ||
| P/B | 0.77 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 6.46 |
EPS(TTM)4.93
EY16.52%
EPS(NY)2.87
Fwd EY9.6%
FCF(TTM)2.74
FCFY9.18%
OCF(TTM)5.75
OCFY19.27%
SpS30.78
BVpS38.94
TBVpS14.71
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.31% | ||
| ROCE | 9.92% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 11.31% | ||
| OM | 18.11% | ||
| PM (TTM) | 1.66% | ||
| GM | 40.76% | ||
| FCFM | 8.9% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 284.7% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.71% | ||
| Profit Quality | 535.21% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.31 |
F-Score6
WACC6.85%
ROIC/WACC0.91
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)7.64%
EPS 3Y9.98%
EPS 5Y19.96%
EPS Q2Q%-66.36%
EPS Next Y-54.96%
EPS Next 2Y-28.72%
EPS Next 3Y-16.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.77%
Revenue growth 3Y3.93%
Revenue growth 5Y14.17%
Sales Q2Q%-28.73%
Revenue Next Year-23.96%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.11%
Revenue Next 5YN/A
EBIT growth 1Y-24.7%
EBIT growth 3Y7.65%
EBIT growth 5Y25.75%
EBIT Next Year-34.35%
EBIT Next 3Y-7%
EBIT Next 5YN/A
FCF growth 1Y179.95%
FCF growth 3Y-8.71%
FCF growth 5Y59.74%
OCF growth 1Y70.55%
OCF growth 3Y5.04%
OCF growth 5Y38.99%