MGP Ingredients
Market Cap
US$580.1m
Last Updated
2020/02/16 23:39 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.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-0.6%
MGPI
1.3%
US Beverage
1.5%
US Market
1 Year Return
-55.3%
MGPI
24.6%
US Beverage
20.1%
US Market
Return vs Industry: MGPI underperformed the US Beverage industry which returned 24.6% over the past year.
Return vs Market: MGPI underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| MGPI | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.3% | 1.5% |
| 30 Day | -10.8% | 4.4% | 1.4% |
| 90 Day | -22.3% | 10.8% | 8.7% |
| 1 Year | -55.0%-55.3% | 27.8%24.6% | 22.7%20.1% |
| 3 Year | -20.5%-22.7% | 48.6%37.1% | 50.1%40.5% |
| 5 Year | 144.2%135.5% | 64.7%44.1% | 73.1%54.1% |
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
5 days ago | Simply Wall St
We Think MGP Ingredients (NASDAQ:MGPI) Can Stay On Top Of Its Debt2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At MGP Ingredients, Inc.'s (NASDAQ:MGPI) P/E Ratio2 weeks ago | Simply Wall St
MGP Ingredients, Inc. (NASDAQ:MGPI) Earns A Nice Return On Capital EmployedValuation
Is MGP Ingredients undervalued compared to its fair value and its price relative to the market?
15.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGPI ($34.07) is trading above our estimate of fair value ($9.19)
Significantly Below Fair Value: MGPI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGPI is good value based on its PE Ratio (15.5x) compared to the Beverage industry average (34.1x).
PE vs Market: MGPI is good value based on its PE Ratio (15.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MGPI is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: MGPI is good value based on its PB Ratio (2.6x) compared to the US Beverage industry average (3x).
Next Steps
Future Growth
How is MGP Ingredients forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGPI's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).
Earnings vs Market: MGPI's earnings (8.8% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: MGPI's earnings are forecast to grow, but not significantly.
Revenue vs Market: MGPI's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MGPI's revenue (2.2% 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 MGPI's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has MGP Ingredients performed over the past 5 years?
13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGPI has high quality earnings.
Growing Profit Margin: MGPI's current net profit margins (9.9%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: MGPI's earnings have grown by 13.4% per year over the past 5 years.
Accelerating Growth: MGPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MGPI had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Beverage industry average (-11.9%).
Return on Equity
High ROE: MGPI's Return on Equity (17.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is MGP Ingredients's financial position?
Financial Position Analysis
Short Term Liabilities: MGPI's short term assets ($175.6M) exceed its short term liabilities ($35.1M).
Long Term Liabilities: MGPI's short term assets ($175.6M) exceed its long term liabilities ($52.5M).
Debt to Equity History and Analysis
Debt Level: MGPI's debt to equity ratio (18.8%) is considered satisfactory.
Reducing Debt: MGPI's debt to equity ratio has increased from 17.1% to 18.8% over the past 5 years.
Debt Coverage: MGPI's debt is well covered by operating cash flow (107%).
Interest Coverage: MGPI's interest payments on its debt are well covered by EBIT (37.3x coverage).
Balance Sheet
Inventory Level: MGPI has a high level of physical assets or inventory.
Debt Coverage by Assets: MGPI's debt is covered by short term assets (assets are 4.3x debt).
Next Steps
Dividend
What is MGP Ingredients's current dividend yield, its reliability and sustainability?
1.17%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MGPI's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: MGPI's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: MGPI has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MGPI's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (17.3%), MGPI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Gus Griffin (59yo)
5.6yrs
Tenure
US$2,153,228
Compensation
Mr. Augustus C. Griffin, also known as Gus, has been the Chief Executive Officer and President of MGP Ingredients, Inc. since July 28, 2014. Mr. Griffin's career with Brown-Forman, a leading global wine an ...
CEO Compensation Analysis
Compensation vs Market: Gus's total compensation ($USD2.15M) is about average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Gus's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 5.6yrs | US$2.15m | 0.52% $3.0m | |
| VP & Chief Administrative Officer | 4.2yrs | US$977.26k | 0.18% $1.0m | |
| VP of Finance & CFO | 0.8yrs | no data | 0.066% $381.0k | |
| Chief Science Officer and VP of Ingredients Research & Development | 4.3yrs | no data | no data | |
| VP, General Counsel & Corporate Secretary | 2.5yrs | no data | no data | |
| Corporate Director of Communications | 0yrs | no data | no data | |
| Vice President of Sales and Marketing | 0yrs | no data | no data | |
| Corporate Controller | 0.7yrs | no data | no data | |
| Consultant | 4.2yrs | US$619.76k | no data |
4.2yrs
Average Tenure
64yo
Average Age
Experienced Management: MGPI's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 5.6yrs | US$2.15m | 0.52% $3.0m | |
| Chairman Emeritus | 0yrs | US$64.88k | no data | |
| Independent Director | 5.8yrs | US$108.00k | 0.36% $2.1m | |
| Independent Director | 6.2yrs | US$117.50k | 0.26% $1.5m | |
| Independent Director | 5.8yrs | US$106.50k | 0.23% $1.3m | |
| Independent Director | 3.8yrs | US$104.00k | 0.026% $148.7k | |
| Independent Director | 4.5yrs | US$110.50k | 0.062% $362.5k | |
| Independent Chairperson | 5.2yrs | US$134.50k | 1.81% $10.5m | |
| Independent Director | 1yrs | no data | 0.013% $73.7k | |
| Director | 0.4yrs | no data | 0.0056% $32.3k |
5.2yrs
Average Tenure
72yo
Average Age
Experienced Board: MGPI's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
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$580.112m
- Shares outstanding: 17.03m
- Website: https://www.mgpingredients.com
Number of Employees
Location
- MGP Ingredients, Inc.
- Cray Business Plaza
- 100 Commercial Street
- Atchison
- Kansas
- 66002
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGPI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1988 |
| M1I | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1988 |
| M1I | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Oct 1988 |
Biography
MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. It operates in two segments, Distillery Products and Ingredient Solutions. The Distillery Products segment provides food grade alcohol for beverage applications that include bourbon and rye whiskeys, as well as grain neutral spirits, including vodka and gin; and food grade industrial alcohol, which is used as an ingredient in foods, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also provides fuel grade alcohol for blending with gasoline; distillery co-products, such as distillers feed and corn oil; and warehouse services, including barrel put away, storage, and retrieval services. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym Resistant Starch, FiberRite RW Resistant Starch, Pregel Instant Starch, and Midsol Cook-up Starch trademarks; specialty wheat proteins for food applications; commodity wheat starch for food and non-food applications; and commodity wheat proteins. The company sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries primarily in the United States, Japan, Thailand, and Canada. MGP Ingredients, Inc. was founded in 1941 and is headquartered in Atchison, Kansas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:39 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.