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.

Rewards

Trading at 13.1% below its fair value

Earnings are forecast to grow 7.73% per year

Earnings grew by 13.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Solid track record and slightly overvalued.


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

Stable Share Price: MIDD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

MIDD

-1.4%

US Machinery

0.5%

US Market


1 Year Return

-6.7%

MIDD

9.4%

US Machinery

20.3%

US Market

Return vs Industry: MIDD underperformed the US Machinery industry which returned 9.4% over the past year.

Return vs Market: MIDD underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

MIDDIndustryMarket
7 Day-2.8%-1.4%0.5%
30 Day-0.09%-1.7%2.0%
90 Day-2.3%1.4%9.4%
1 Year-6.7%-6.7%11.4%9.4%22.8%20.3%
3 Year-18.9%-18.9%37.8%29.0%50.1%40.4%
5 Year4.4%4.4%61.4%42.3%73.1%54.1%

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?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIDD ($111.97) is trading below our estimate of fair value ($128.85)

Significantly Below Fair Value: 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 (18.4x) compared to the Machinery industry average (21.3x).

PE vs Market: MIDD is poor value based on its PE Ratio (18.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MIDD is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MIDD is overvalued based on its PB Ratio (3.4x) 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 7 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIDD's forecast earnings growth (7.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MIDD's earnings (7.7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: MIDD's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MIDD's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIDD has high quality earnings.

Growing Profit Margin: MIDD's current net profit margins (11.5%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: MIDD's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: MIDD's earnings growth over the past year (13.6%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: MIDD earnings growth over the past year (13.6%) exceeded the Machinery industry 1.5%.


Return on Equity

High ROE: MIDD's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Middleby's financial position?


Financial Position Analysis

Short Term Liabilities: MIDD's short term assets ($1.2B) exceed its short term liabilities ($585.2M).

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 (107.2%) is considered high.

Reducing Debt: MIDD's debt to equity ratio has increased from 53.7% to 107.2% over the past 5 years.

Debt Coverage: MIDD's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: MIDD's interest payments on its debt are well covered by EBIT (6.5x 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%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Tim FitzGerald (49yo)

1yrs

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's total compensation ($USD3.56M) is below average for companies of similar size in the US market ($USD6.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy FitzGerald
CEO & Director1yrsUS$3.56m0.48% $30.1m
David Brewer
Executive VP & COO1yrsUS$1.51m0.13% $8.2m
Selim Bassoul
Consultant1yrsUS$1.55m1.18% $73.9m
Martin Lindsay
VP, Treasurer & Secretary18yrsUS$778.21k0.14% $8.5m
Bryan Mittelman
Chief Financial Officer1yrsno data0.014% $887.6k
Partha Biswas
Division President of Middleby India & Global Chief Information Officer0yrsno datano data
David Abi
President of CookTek and President of Carter-Hoffmann0.5yrsno datano data
Magdy Albert
President Food Processing Group0yrsUS$583.49kno data
Gary Mick
President of Blodgett Oven Company12.8yrsUS$497.09kno data
Ousama Sidani
VP of Supply Chain & Group President of Houno A/S11.1yrsno datano data

1.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: MIDD's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy FitzGerald
CEO & Director1yrsUS$3.56m0.48% $30.1m
Gordon O'Brien
Independent Chairman of the Board1yrsUS$219.97k0.064% $4.0m
John Miller
Independent Director42.1yrsUS$219.97k0.029% $1.8m
Cathy McCarthy
Independent Director4.3yrsUS$219.97k0.011% $664.4k
Sarah Chapin
Independent Director6.3yrsUS$209.97k0.0086% $537.5k
Robert Nerbonne
Director0.5yrsno data0.0063% $398.5k
Nassem Ziyad
Independent Director2.8yrsUS$204.97k0.0089% $560.1k

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: MIDD's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MIDD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.286b
  • Shares outstanding: 56.14m
  • 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 East, and Latin America. Its Commercial Foodservice Equipment Group segment offers foodservice equipment for quick and full-service restaurants, convenience stores, retail outlets, hotels, and other institutions. This segment provides conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, rethermalizers, heated cabinets, charbroilers, ventless cooking systems, kitchen ventilations, toasters, griddles, grills, mixers, refrigerators, blast chillers, coldrooms, ice machines, and freezers; steam cooking, food warming, catering, induction and countertop cooking equipment, as well as soft serve, ice cream, coffee, and beverage dispensing equipment; and stainless steel fabrication and custom millwork products. The company’s Food Processing Equipment Group segment offers processing solutions for customers producing hot dog, dinner sausage, poultry, and lunchmeat, as well as muffin, cookie, and bread products. This segment provides batch, baking, proofing, conveyor, and continuous processing ovens; frying and automated thermal processing systems; grinders, slicers, reduction and emulsion systems, mixers, blenders, water cutting systems, food presses, and automated loading and unloading systems; and various battering and breading, seeding, food suspension and forming, food safety and handling, freezing, defrosting, and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising ranges, cookers, stoves, dishwashers, microwaves, cooktops, wine coolers, and ventilation and outdoor equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:12
End of Day Share Price2020/02/19 00:00
Earnings2019/09/28
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.