MIDDLEBY CORP (MIDD) Stock Fundamental Analysis
NASDAQ:MIDD - Nasdaq - US5962781010 - Common Stock - Currency: USD
MIDD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and the financial health of MIDD get a neutral evaluation. Nothing too spectacular is happening here. MIDD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MIDD was profitable.
In the past year MIDD had a positive cash flow from operations.
MIDD had positive earnings in each of the past 5 years.
Each year in the past 5 years MIDD had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 11.64%, MIDD is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
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
With a decent Profit Margin value of 11.26%, MIDD is doing good in the industry, outperforming 78.91% of the companies in the same industry.
In the last couple of years the Profit Margin of MIDD has remained more or less at the same level.
MIDD has a better Operating Margin (18.44%) than 84.38% of its industry peers.
In the last couple of years the Operating Margin of MIDD has remained more or less at the same level.
MIDD has a Gross Margin of 38.13%. This is in the better half 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
MIDD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MIDD has about the same amount of shares outstanding.
MIDD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MIDD has been reduced compared to a year ago.
2.2 Solvency
MIDD has an Altman-Z score of 3.22. This indicates that MIDD is financially healthy and has little risk of bankruptcy at the moment.
MIDD has a Altman-Z score (3.22) which is in line with 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.
MIDD has a Debt to FCF ratio (3.87) which is in line with its industry peers.
MIDD has a Debt/Equity ratio of 0.63. This is a neutral value indicating MIDD is somewhat dependend on debt financing.
The Debt to Equity ratio of MIDD (0.63) is worse than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.22 |
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.
A Quick Ratio of 1.73 indicates that MIDD should not have too much problems paying its short term obligations.
The Quick ratio of MIDD (1.73) is better than 72.66% of its industry peers.
| 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.
Measured over the past 5 years, MIDD shows a small growth in Earnings Per Share. The EPS has been growing by 6.89% on average per year.
Looking at the last year, MIDD shows a decrease in Revenue. The Revenue has decreased by -2.56% in the last year.
The Revenue has been growing slightly by 5.54% on average over the past years.
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
MIDD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.08% yearly.
MIDD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.95% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 15.35, which indicates a correct valuation of MIDD.
Compared to the rest of the industry, the Price/Earnings ratio of MIDD indicates a rather cheap valuation: MIDD is cheaper than 80.47% of the companies listed in the same industry.
MIDD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
MIDD is valuated correctly with a Price/Forward Earnings ratio of 13.96.
Based on the Price/Forward Earnings ratio, MIDD is valued a bit cheaper than 76.56% of the companies in the same industry.
MIDD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.96 |
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.
Based on the Price/Free Cash Flow ratio, MIDD is valued cheaper than 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 11.45 |
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.
The decent profitability rating of MIDD may justify a higher PE ratio.
PEG (NY)8.34
PEG (5Y)2.23
EPS Next 2Y5.91%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
MIDD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
148.63
-0.53 (-0.36%)
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 Cap7.95B
Analysts76
Price Target179.86 (21.01%)
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 | 15.35 | ||
| Fwd PE | 13.96 | ||
| P/S | 2.06 | ||
| P/FCF | 12.89 | ||
| P/OCF | 11.57 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.45 |
EPS(TTM)9.68
EY6.51%
EPS(NY)10.64
Fwd EY7.16%
FCF(TTM)11.53
FCFY7.76%
OCF(TTM)12.85
OCFY8.64%
SpS72.08
BVpS69.74
TBVpS-7.85
PEG (NY)8.34
PEG (5Y)2.23
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 | 3.22 |
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%