MIDDLEBY CORP (MIDD) Stock Fundamental Analysis
NASDAQ:MIDD - Nasdaq - US5962781010 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MIDD. MIDD was compared to 128 industry peers in the Machinery industry. MIDD has only an average score on both its financial health and profitability. MIDD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MIDD had positive earnings in the past year.
MIDD had a positive operating cash flow in the past year.
In the past 5 years MIDD has always been profitable.
In the past 5 years MIDD always reported a positive cash flow from operatings.
1.2 Ratios
MIDD's Return On Assets of 5.87% is fine compared to the rest of the industry. MIDD outperforms 61.72% of its industry peers.
MIDD has a Return On Equity of 11.64%. This is in the better half of the industry: MIDD outperforms 60.94% of its industry peers.
MIDD has a Return On Invested Capital (8.26%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MIDD is below the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROIC | 8.26% |
ROA(3y)6.01%
ROA(5y)5.93%
ROE(3y)13.24%
ROE(5y)13.96%
ROIC(3y)8.58%
ROIC(5y)7.78%
1.3 Margins
MIDD's Profit Margin of 11.26% is fine compared to the rest of the industry. MIDD outperforms 78.91% of its industry peers.
In the last couple of years the Profit Margin of MIDD has remained more or less at the same level.
The Operating Margin of MIDD (18.44%) is better than 84.38% of its industry peers.
MIDD's Operating Margin has been stable in the last couple of years.
MIDD's Gross Margin of 38.13% is fine compared to the rest of the industry. MIDD outperforms 70.31% of its industry peers.
In the last couple of years the Gross Margin of MIDD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.44% | ||
| PM (TTM) | 11.26% | ||
| GM | 38.13% |
OM growth 3Y4.07%
OM growth 5Y0.8%
PM growth 3Y-9.72%
PM growth 5Y-1.46%
GM growth 3Y1.06%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MIDD is destroying value.
The number of shares outstanding for MIDD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MIDD has less shares outstanding
The debt/assets ratio for MIDD has been reduced compared to a year ago.
2.2 Solvency
MIDD has an Altman-Z score of 3.18. This indicates that MIDD is financially healthy and has little risk of bankruptcy at the moment.
MIDD has a Altman-Z score of 3.18. This is comparable to the rest of the industry: MIDD outperforms 53.91% of its industry peers.
MIDD has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as MIDD would need 3.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.87, MIDD is in line with its industry, outperforming 58.59% of the companies in the same industry.
MIDD has a Debt/Equity ratio of 0.63. This is a neutral value indicating MIDD is somewhat dependend on debt financing.
MIDD has a worse Debt to Equity ratio (0.63) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.87
WACC9.48%
2.3 Liquidity
MIDD has a Current Ratio of 2.72. This indicates that MIDD is financially healthy and has no problem in meeting its short term obligations.
MIDD has a Current ratio of 2.72. This is in the better half of the industry: MIDD outperforms 71.09% of its industry peers.
MIDD has a Quick Ratio of 1.73. This is a normal value and indicates that MIDD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.73, MIDD is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.42% over the past year.
MIDD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.89% yearly.
The Revenue has decreased by -2.56% in the past year.
Measured over the past years, MIDD shows a small growth in Revenue. The Revenue has been growing by 5.54% on average per year.
EPS 1Y (TTM)3.42%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%10.05%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 9.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y1.84%
EPS Next 2Y5.91%
EPS Next 3Y8.04%
EPS Next 5Y9.08%
Revenue Next Year1.4%
Revenue Next 2Y2.47%
Revenue Next 3Y3%
Revenue Next 5Y2.95%
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 accelerating.
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 14.88, which indicates a correct valuation of MIDD.
Compared to the rest of the industry, the Price/Earnings ratio of MIDD indicates a somewhat cheap valuation: MIDD is cheaper than 78.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, MIDD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.53, MIDD is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MIDD indicates a somewhat cheap valuation: MIDD is cheaper than 76.56% of the companies listed in the same industry.
MIDD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MIDD is valued a bit cheaper than 67.19% of the companies in the same industry.
MIDD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MIDD is cheaper than 86.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MIDD does not grow enough to justify the current Price/Earnings ratio.
MIDD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.08
PEG (5Y)2.16
EPS Next 2Y5.91%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
No dividends for MIDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
144
-0.94 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.37%
Inst Owner Change-2.94%
Ins Owners1.36%
Ins Owner Change4.64%
Market Cap7.70B
Analysts76
Price Target179.86 (24.9%)
Short Float %7.02%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.13%
Min EPS beat(2)4.3%
Max EPS beat(2)11.96%
EPS beat(4)3
Avg EPS beat(4)2.53%
Min EPS beat(4)-7.73%
Max EPS beat(4)11.96%
EPS beat(8)5
Avg EPS beat(8)1.21%
EPS beat(12)8
Avg EPS beat(12)1.55%
EPS beat(16)9
Avg EPS beat(16)0.83%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-4.07%
Revenue beat(12)1
Avg Revenue beat(12)-3.03%
Revenue beat(16)3
Avg Revenue beat(16)-2.29%
PT rev (1m)-4.51%
PT rev (3m)-8.56%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)-6.42%
EPS NY rev (1m)1.08%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.53 | ||
| P/S | 2 | ||
| P/FCF | 12.49 | ||
| P/OCF | 11.21 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)9.68
EY6.72%
EPS(NY)10.64
Fwd EY7.39%
FCF(TTM)11.53
FCFY8.01%
OCF(TTM)12.85
OCFY8.92%
SpS72.08
BVpS69.74
TBVpS-7.85
PEG (NY)8.08
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.64% | ||
| ROCE | 10.91% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 33.2% | ||
| OM | 18.44% | ||
| PM (TTM) | 11.26% | ||
| GM | 38.13% | ||
| FCFM | 16% |
ROA(3y)6.01%
ROA(5y)5.93%
ROE(3y)13.24%
ROE(5y)13.96%
ROIC(3y)8.58%
ROIC(5y)7.78%
ROICexc(3y)9.12%
ROICexc(5y)8.23%
ROICexgc(3y)32.98%
ROICexgc(5y)32.85%
ROCE(3y)11.34%
ROCE(5y)10.28%
ROICexcg growth 3Y-1.32%
ROICexcg growth 5Y-3.17%
ROICexc growth 3Y7.22%
ROICexc growth 5Y0.39%
OM growth 3Y4.07%
OM growth 5Y0.8%
PM growth 3Y-9.72%
PM growth 5Y-1.46%
GM growth 3Y1.06%
GM growth 5Y0.35%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 55.48% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 7.52 | ||
| Cash Conversion | 82.01% | ||
| Profit Quality | 142.01% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 3.18 |
F-Score8
WACC9.48%
ROIC/WACC0.87
Cap/Depr(3y)51.59%
Cap/Depr(5y)46.78%
Cap/Sales(3y)1.72%
Cap/Sales(5y)1.68%
Profit Quality(3y)114.73%
Profit Quality(5y)130.65%
High Growth Momentum
Growth
EPS 1Y (TTM)3.42%
EPS 3Y6.17%
EPS 5Y6.89%
EPS Q2Q%10.05%
EPS Next Y1.84%
EPS Next 2Y5.91%
EPS Next 3Y8.04%
EPS Next 5Y9.08%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y6.03%
Revenue growth 5Y5.54%
Sales Q2Q%-2.19%
Revenue Next Year1.4%
Revenue Next 2Y2.47%
Revenue Next 3Y3%
Revenue Next 5Y2.95%
EBIT growth 1Y0.98%
EBIT growth 3Y10.34%
EBIT growth 5Y6.38%
EBIT Next Year17.27%
EBIT Next 3Y8.92%
EBIT Next 5YN/A
FCF growth 1Y72.24%
FCF growth 3Y19.69%
FCF growth 5Y14.02%
OCF growth 1Y56.18%
OCF growth 3Y17.5%
OCF growth 5Y12.72%