NasdaqGS:MIDD

Stock Analysis Report

Executive Summary

The Middleby Corporation designs, manufactures, markets, distributes, and services foodservice, food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America.

Snowflake

Fundamentals

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Middleby's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

MIDD

2.5%

US Machinery

0.4%

US Market


1 Year Return

0.9%

MIDD

8.5%

US Machinery

6.9%

US Market

Return vs Industry: MIDD underperformed the US Machinery industry which returned 8.5% over the past year.

Return vs Market: MIDD underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

MIDDIndustryMarket
7 Day2.2%2.5%0.4%
30 Day-1.1%0.9%-1.1%
90 Day-15.4%-0.4%-0.5%
1 Year0.9%0.9%10.8%8.5%9.3%6.9%
3 Year1.3%1.3%49.9%40.2%45.8%36.4%
5 Year36.1%36.1%57.6%38.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Middleby's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Middleby undervalued compared to its fair value and its price relative to the market?

10.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MIDD ($115.74) is trading below our estimate of fair value ($129.87)

Significantly Undervalued: MIDD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MIDD is good value based on its PE Ratio (19.6x) compared to the Machinery industry average (20.1x).

PE vs Market: MIDD is poor value based on its PE Ratio (19.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: MIDD is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MIDD is overvalued based on its PB Ratio (3.6x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Middleby forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIDD's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MIDD's earnings (11.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: MIDD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MIDD's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MIDD's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MIDD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Middleby performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MIDD's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: MIDD's earnings growth over the past year (10%) is below its 5-year average (13% per year).

Earnings vs Industry: MIDD earnings growth over the past year (10%) underperformed the Machinery industry 17.5%.


Return on Equity

High ROE: MIDD's Return on Equity (18.3%) is considered low.


Return on Assets

ROA vs Industry: MIDD has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: MIDD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Middleby's financial position?


Financial Position Analysis

Short Term Liabilities: MIDD's short term assets ($1.2B) exceeds its short term liabilities ($565.3M)

Long Term Liabilities: MIDD's short term assets (1.2B) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: MIDD's debt to equity ratio (112.4%) is considered high

Reducing Debt: MIDD's debt to equity ratio has increased from 65% to 112.4% over the past 5 years.

Debt Coverage: MIDD's debt is not well covered by operating cash flow (16%).

Interest Coverage: MIDD's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: MIDD has a high level of physical assets or inventory.

Debt Coverage by Assets: MIDD's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Middleby's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MIDD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MIDD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MIDD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MIDD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MIDD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Middleby's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Tim FitzGerald (49yo)

0.7yrs

Tenure

US$3,561,555

Compensation

Mr. Timothy J. FitzGerald, also known as Tim, has been Chief Executive Officer and Director since February 16, 2019 and served as the Chief Financial Officer of Middleby Corp. since May 16, 2003 until Febr ...


CEO Compensation Analysis

Compensation vs. Market: Tim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.7yrs

Average Tenure

59.5yo

Average Age

Experienced Management: MIDD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: MIDD's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MIDD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$50,60114 Aug 19
Robert Nerbonne
EntityIndividual
Role
Member of the Board of Directors
Director
Shares455
Max PriceUS$111.21
BuyUS$51,23313 Aug 19
Robert Nerbonne
EntityIndividual
Role
Member of the Board of Directors
Director
Shares450
Max PriceUS$113.85
SellUS$13,50016 May 19
Sarah Chapin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$135.00
SellUS$252,74016 Apr 19
John Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$126.37
SellUS$37,25412 Mar 19
Sarah Chapin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$124.18

Ownership Breakdown


Management Team

  • Selim Bassoul (62yo)

    Consultant

    • Tenure: 0.7yrs
    • Compensation: US$1.55m
  • Tim FitzGerald (49yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: US$3.56m
  • Magdy Albert (67yo)

    President Food Processing Group

    • Tenure: 0yrs
    • Compensation: US$583.49k
  • Martin Lindsay (54yo)

    VP, Treasurer & Secretary

    • Tenure: 17.7yrs
    • Compensation: US$778.21k
  • David Brewer (62yo)

    Executive VP & COO

    • Tenure: 0.7yrs
    • Compensation: US$1.51m
  • Gary Mick (57yo)

    President of Blodgett Oven Company

    • Tenure: 12.5yrs
    • Compensation: US$497.09k
  • Ousama Sidani (62yo)

    VP of Supply Chain & Group President of Houno A/S

    • Tenure: 10.8yrs
  • Partha Biswas

    Division President of Middleby India & Global Chief Information Officer

    • Tenure: 0yrs
  • Bryan Mittelman (48yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
  • David Abi

    President of CookTek and President of Carter-Hoffmann

    • Tenure: 0.2yrs

Board Members

  • Gordon O'Brien (53yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$219.97k
  • John Miller (78yo)

    Independent Director

    • Tenure: 41.8yrs
    • Compensation: US$219.97k
  • Cathy McCarthy (71yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$219.97k
  • Tim FitzGerald (49yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: US$3.56m
  • Sarah Chapin (57yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$209.97k
  • Robert Nerbonne

    Director

    • Tenure: 0.2yrs
  • Nassem Ziyad (53yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$204.97k

Company Information

The Middleby Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Middleby Corporation
  • Ticker: MIDD
  • Exchange: NasdaqGS
  • Founded: 1888
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$6.443b
  • Shares outstanding: 55.67m
  • Website: https://www.middleby.com

Number of Employees


Location

  • The Middleby Corporation
  • 1400 Toastmaster Drive
  • Elgin
  • Illinois
  • 60120
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MIDDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1987
MBYDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1987
0K1GLSE (London Stock Exchange)YesCommon StockGBUSDAug 1987

Biography

The Middleby Corporation designs, manufactures, markets, distributes, and services foodservice, food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle Eas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:36
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.