NasdaqGS:MGPI

Stock Analysis Report

Executive Summary

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


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

-2.7%

MGPI

-0.01%

US Beverage

-1.1%

US Market


1 Year Return

-57.5%

MGPI

24.7%

US Beverage

17.9%

US Market

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

Return vs Market: MGPI underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

MGPIIndustryMarket
7 Day-2.7%-0.01%-1.1%
30 Day-9.6%3.3%1.4%
90 Day-28.9%10.0%6.9%
1 Year-57.2%-57.5%27.9%24.7%20.3%17.9%
3 Year-22.4%-24.6%46.9%35.5%47.8%38.3%
5 Year120.6%112.6%61.2%41.2%71.9%53.0%

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?

15.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGPI ($33.15) 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 (15.1x) compared to the Beverage industry average (35x).

PE vs Market: MGPI is good value based on its PE Ratio (15.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MGPI is poor value based on its PEG Ratio (1.7x)


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 (14.1% 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?

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MGPI's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MGPI's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 ($USD2.15M) is about average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Gus's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Augustus Griffin
CEO, President & Director5.6yrsUS$2.15m0.52% $3.0m
David Rindom
VP & Chief Administrative Officer4.2yrsUS$977.26k0.18% $993.1k
Brandon Gall
VP of Finance & CFO0.8yrsno data0.066% $370.7k
Clodualdo Maningat
Chief Science Officer and VP of Ingredients Research & Development4.3yrsno datano data
Thomas Lynn
VP, General Counsel & Corporate Secretary2.5yrsno datano data
Greg Manis
Corporate Director of Communications0yrsno datano data
Michael Lasater
Vice President of Sales and Marketing0yrsno datano data
Mark Davidson
Corporate Controller0.7yrsno datano data
Randall Schrick
Consultant4.2yrsUS$619.76kno data

4.2yrs

Average Tenure

64yo

Average Age

Experienced Management: MGPI's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Augustus Griffin
CEO, President & Director5.6yrsUS$2.15m0.52% $3.0m
Cloud Cray
Chairman Emeritus0yrsUS$64.88kno data
Terrence Dunn
Independent Director5.8yrsUS$108.00k0.36% $2.0m
M. Strandjord
Independent Director6.2yrsUS$117.50k0.26% $1.5m
Anthony Foglio
Independent Director5.8yrsUS$106.50k0.23% $1.3m
James Bareuther
Independent Director3.8yrsUS$104.00k0.026% $144.7k
David Colo
Independent Director4.5yrsUS$110.50k0.062% $352.7k
Karen Seaberg
Independent Chairperson5.2yrsUS$134.50k1.81% $10.2m
Lynn Jenkins
Independent Director1yrsno data0.013% $71.7k
Kerry Skelly
Director0.4yrsno data0.0056% $31.4k

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$564.447m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGPINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1988
M1IDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1988
M1IBST (Boerse-Stuttgart)YesCommon StockDEEUROct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:52
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.