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MGPI

MGP Ingredients NasdaqGS:MGPI Stock Report

Last Price

US$95.36

Market Cap

US$2.1b

7D

2.4%

1Y

46.1%

Updated

26 Jun, 2022

Data

Company Financials +
MGPI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends0/6

MGPI Stock Overview

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, branded spirits, and food ingredients.

MGP Ingredients Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MGP Ingredients
Historical stock prices
Current Share PriceUS$95.36
52 Week HighUS$104.00
52 Week LowUS$58.41
Beta1.14
1 Month Change-2.39%
3 Month Change14.56%
1 Year Change46.06%
3 Year Change43.81%
5 Year Change86.36%
Change since IPO1,032.99%

Recent News & Updates

Jun 10
Calculating The Fair Value Of MGP Ingredients, Inc. (NASDAQ:MGPI)

Calculating The Fair Value Of MGP Ingredients, Inc. (NASDAQ:MGPI)

Does the June share price for MGP Ingredients, Inc. ( NASDAQ:MGPI ) reflect what it's really worth? Today, we will...

Jun 04

MGP Ingredients: Upside From Here Is Limited

MGP Ingredients has had a great run over the past couple of months, as strong fundamental performance has driven shares higher. This trend looks set to continue and the long-term outlook for the company is promising. However, shares are now more or less fully valued, leaving additional upside limited.

Shareholder Returns

MGPIUS BeverageUS Market
7D2.4%6.3%6.6%
1Y46.1%9.4%-18.4%

Return vs Industry: MGPI exceeded the US Beverage industry which returned 9.4% over the past year.

Return vs Market: MGPI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is MGPI's price volatile compared to industry and market?
MGPI volatility
MGPI Average Weekly Movement5.3%
Beverage Industry Average Movement6.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: MGPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MGPI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1941672Dave Colohttps://www.mgpingredients.com

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, branded spirits, and food ingredients. It operates through three segments: Distillery Products; Branded Spirits; 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.

MGP Ingredients Fundamentals Summary

How do MGP Ingredients's earnings and revenue compare to its market cap?
MGPI fundamental statistics
Market CapUS$2.10b
Earnings (TTM)US$112.43m
Revenue (TTM)US$713.63m

18.6x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGPI income statement (TTM)
RevenueUS$713.63m
Cost of RevenueUS$496.43m
Gross ProfitUS$217.20m
Other ExpensesUS$104.77m
EarningsUS$112.43m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.11
Gross Margin30.44%
Net Profit Margin15.76%
Debt/Equity Ratio34.2%

How did MGPI perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MGPI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGPI?

Other financial metrics that can be useful for relative valuation.

MGPI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA15.6x
PEG Ratio19.7x

Price to Earnings Ratio vs Peers

How does MGPI's PE Ratio compare to its peers?

MGPI PE Ratio vs Peers
The above table shows the PE ratio for MGPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average45.5x
NAPA Duckhorn Portfolio
39.6x18.5%US$2.5b
VWE Vintage Wine Estates
59.4x37.9%US$548.5m
CWGL Crimson Wine Group
42.3xn/aUS$163.0m
BF.B Brown-Forman
40.9x9.6%US$34.1b
MGPI MGP Ingredients
18.6x0.9%US$2.1b

Price-To-Earnings vs Peers: MGPI is good value based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (45.5x).


Price to Earnings Ratio vs Industry

How does MGPI's PE Ratio compare vs other companies in the North American Beverage Industry?

Price-To-Earnings vs Industry: MGPI is good value based on its Price-To-Earnings Ratio (18.6x) compared to the US Beverage industry average (30x)


Price to Earnings Ratio vs Fair Ratio

What is MGPI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGPI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: MGPI is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


Share Price vs Fair Value

What is the Fair Price of MGPI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MGPI ($95.36) is trading below our estimate of fair value ($112.81)

Significantly Below Fair Value: MGPI is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: MGPI is poor value based on its PEG Ratio (19.7x)


Discover undervalued companies

Future Growth

How is MGP Ingredients forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPI's forecast earnings growth (0.9% per year) is below the savings rate (1.9%).

Earnings vs Market: MGPI's earnings (0.9% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: MGPI's revenue (4.1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: MGPI's revenue (4.1% 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


Discover growth companies

Past Performance

How has MGP Ingredients performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MGPI has a large one-off gain of $28.7M impacting its March 31 2022 financial results.

Growing Profit Margin: MGPI's current net profit margins (15.8%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: MGPI's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: MGPI's earnings growth over the past year (146.6%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: MGPI earnings growth over the past year (146.6%) exceeded the Beverage industry 8.9%.


Return on Equity

High ROE: MGPI's Return on Equity (16.6%) is considered low.


Discover strong past performing companies

Financial Health

How is MGP Ingredients's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MGPI's short term assets ($395.3M) exceed its short term liabilities ($84.5M).

Long Term Liabilities: MGPI's short term assets ($395.3M) exceed its long term liabilities ($313.0M).


Debt to Equity History and Analysis

Debt Level: MGPI's net debt to equity ratio (30.2%) is considered satisfactory.

Reducing Debt: MGPI's debt to equity ratio has increased from 27% to 34.2% over the past 5 years.

Debt Coverage: MGPI's debt is well covered by operating cash flow (40.2%).

Interest Coverage: MGPI's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MGPI's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MGPI's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure


CEO

Dave Colo (58 yo)

2.25yrs

Tenure

US$3,373,695

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 ($USD3.37M) is below average for companies of similar size in the US market ($USD5.47M).

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 (2.3 years average tenure).


Board Members

Experienced Board: MGPI's board of directors are not considered experienced ( 1 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: MGPI 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 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
  • Implied Market Cap: US$2.097b
  • Shares outstanding: 21.99m
  • Website: https://www.mgpingredients.com

Number of Employees


Location

  • MGP Ingredients, Inc.
  • 100 Commercial Street
  • PO Box 130
  • Atchison
  • Kansas
  • 66002
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.