MGP Ingredients
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
Rewards
Risk Analysis
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
| MGPI | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.9% | -1.2% | 0.8% |
| 30 Day | 1.2% | 1.1% | 3.0% |
| 90 Day | 0.3% | 7.9% | 4.8% |
| 1 Year | 83.0%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 Year | 103.4%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
5 days ago | Simply Wall St
We Think MGP Ingredients (NASDAQ:MGPI) Can Stay On Top Of Its Debt2 weeks ago | Simply Wall St
Did You Miss MGP Ingredients' (NASDAQ:MGPI) Impressive 106% Share Price Gain?4 months ago | Simply Wall St
Is There More To The Story Than MGP Ingredients' (NASDAQ:MGPI) Earnings Growth?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/15 06:52 |
| End of Day Share Price | 2021/06/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.