NasdaqGS:MGPI

Stock Analysis Report

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Market Cap

US$1.5b

Last Updated

2021/06/15 06:52 UTC

Data Sources

Company Financials +

Executive Summary

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MGPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MGPI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-11.9%

MGPI

-1.2%

US Beverage

0.8%

US Market


1 Year Return

81.2%

MGPI

22.8%

US Beverage

43.1%

US Market

Return vs Industry: MGPI exceeded the US Beverage industry which returned 24.7% over the past year.

Return vs Market: MGPI exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

MGPIIndustryMarket
7 Day-11.9%-1.2%0.8%
30 Day1.2%1.1%3.0%
90 Day0.3%7.9%4.8%
1 Year83.0%81.2%25.9%22.8%45.5%43.1%
3 Year-29.1%-31.0%43.5%32.7%60.2%50.3%
5 Year103.4%94.1%56.1%36.6%126.4%101.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGPI ($75.21) is trading below our estimate of fair value ($173.62)

Significantly Below Fair Value: MGPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGPI is good value based on its PE Ratio (27.9x) compared to the US Beverage industry average (33.3x).

PE vs Market: MGPI is poor value based on its PE Ratio (27.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: MGPI is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MGPI is good value based on its PB Ratio (4.6x) compared to the US Beverage industry average (6.2x).


Future Growth

How is MGP Ingredients forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPI's forecast earnings growth (21.9% per year) is above the savings rate (2%).

Earnings vs Market: MGPI's earnings (21.9% per year) are forecast to grow faster than the US market (15.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGPI's revenue (22.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: MGPI's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has MGP Ingredients performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGPI has high quality earnings.

Growing Profit Margin: MGPI's current net profit margins (11.3%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: MGPI's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: MGPI's earnings growth over the past year (17.9%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: MGPI earnings growth over the past year (17.9%) underperformed the Beverage industry 22.3%.


Return on Equity

High ROE: MGPI's Return on Equity (16.5%) is considered low.


Financial Health

How is MGP Ingredients's financial position?


Financial Position Analysis

Short Term Liabilities: MGPI's short term assets ($229.5M) exceed its short term liabilities ($55.0M).

Long Term Liabilities: MGPI's short term assets ($229.5M) exceed its long term liabilities ($47.6M).


Debt to Equity History and Analysis

Debt Level: MGPI's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: MGPI's debt to equity ratio has reduced from 28.9% to 13.6% over the past 5 years.

Debt Coverage: MGPI's debt is well covered by operating cash flow (184.6%).

Interest Coverage: MGPI's interest payments on its debt are well covered by EBIT (40.9x coverage).


Balance Sheet


Dividend

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

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGPI's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: MGPI's dividend (0.64%) is low compared to the top 25% of dividend payers in the US market (3.35%).


Stability and Growth of Payments

Stable Dividend: MGPI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MGPI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MGPI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGPI'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?

2.1yrs

Average management tenure


CEO

Dave Colo (57 yo)

1.08yrs

Tenure

US$1,876,352

Compensation

Mr. David J. Colo, also known as Dave, has been Chief Executive Officer of MGP Ingredients, Inc. since May 21, 2020 and its President since March 16, 2020 and Director since August 18, 2015. Mr. Colo was C...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.88M) is below average for companies of similar size in the US market ($USD3.67M).

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


Leadership Team

Experienced Management: MGPI's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: MGPI's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.9%.


Top Shareholders

Company Information

MGP Ingredients, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGP Ingredients, Inc.
  • Ticker: MGPI
  • Exchange: NasdaqGS
  • Founded: 1941
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.456b
  • Shares outstanding: 21.95m
  • Website: https://www.mgpingredients.com

Number of Employees


Location

  • MGP Ingredients, Inc.
  • Cray Business Plaza
  • 100 Commercial Street
  • Atchison
  • Kansas
  • 66002-0130
  • United States

Listings


Biography

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. It operates through two segments, Distillery Produc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 06:52
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.