NasdaqGS:MGPI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 with acceptable track record.


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

5.5%

MGPI

2.8%

US Beverage

3.8%

US Market


1 Year Return

-38.3%

MGPI

-1.7%

US Beverage

9.7%

US Market

Return vs Industry: MGPI underperformed the US Beverage industry which returned -2.6% over the past year.

Return vs Market: MGPI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MGPIIndustryMarket
7 Day5.5%2.8%3.8%
30 Day7.9%6.8%11.4%
90 Day31.6%-4.2%6.8%
1 Year-37.6%-38.3%0.8%-1.7%12.1%9.7%
3 Year-17.7%-20.4%19.4%10.0%36.2%27.2%
5 Year136.5%127.2%49.2%30.9%63.7%45.4%

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?

17.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGPI ($39.57) is trading above our estimate of fair value ($17.63)

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 (17.4x) compared to the Beverage industry average (23.8x).

PE vs Market: MGPI is poor value based on its PE Ratio (17.4x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MGPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGPI is good value based on its PB Ratio (2.8x) compared to the US Beverage industry average (3.1x).


Next Steps

Future Growth

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

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPI's earnings are forecast to decline over the next 3 years (-1.1% per year).

Earnings vs Market: MGPI's earnings are forecast to decline over the next 3 years (-1.1% per year).

High Growth Earnings: MGPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGPI's revenue (4.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: MGPI's revenue (4.2% 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?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGPI has high quality earnings.

Growing Profit Margin: MGPI's current net profit margins (10.4%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: MGPI's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: MGPI's earnings growth over the past year (3.1%) is below its 5-year average (10.3% per year).

Earnings vs Industry: MGPI earnings growth over the past year (3.1%) underperformed the Beverage industry 7.9%.


Return on Equity

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


Next Steps

Financial Health

How is MGP Ingredients's financial position?


Financial Position Analysis

Short Term Liabilities: MGPI's short term assets ($242.3M) exceed its short term liabilities ($41.3M).

Long Term Liabilities: MGPI's short term assets ($242.3M) exceed its long term liabilities ($105.5M).


Debt to Equity History and Analysis

Debt Level: MGPI's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: MGPI's debt to equity ratio has increased from 9.4% to 39.2% over the past 5 years.

Debt Coverage: MGPI's debt is well covered by operating cash flow (26.1%).

Interest Coverage: MGPI's interest payments on its debt are well covered by EBIT (34.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGPI's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: MGPI's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: MGPI's dividend payments have been volatile in the past 10 years.

Growing Dividend: MGPI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), 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?

2.8yrs

Average management tenure


CEO

Dave Colo (56yo)

0.083

Tenure

US$152,000

Compensation

Mr. David J. Colo, also known as Dave, has been an Independent Director of MGP Ingredients Inc. since August 18, 2015 and serves as its President and Chief Operating Officer since March 16, 2020 and Chief  ...


Leadership Team

NamePositionTenureCompensationOwnership
David Colo
CEO, President0.083yrUS$152.00k0.088% $586.3k
Brandon Gall
VP of Finance & CFO1.17yrsUS$530.21k0.12% $805.1k
David Rindom
VP & Chief Administrative Officer4.5yrsUS$730.81k0.19% $1.3m
Clodualdo Maningat
Chief Science Officer and VP of Ingredients Research & Development4.67yrsno datano data
Thomas Lynn
VP, General Counsel & Corporate Secretary2.83yrsno datano data
Greg Manis
Corporate Director of Communicationsno datano datano data
Michael Lasater
Vice President of Sales and Marketingno datano datano data
Mark Davidson
Corporate Controller1yrno datano data
Randall Schrick
Consultant4.5yrsUS$619.76kno data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Management: MGPI's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Colo
CEO, President0.083yrUS$152.00k0.088% $586.3k
Cloud Cray
Chairman Emeritusno dataUS$64.88kno data
Terrence Dunn
Independent Director6.08yrsUS$152.00k0.42% $2.8m
M. Strandjord
Independent Director6.5yrsUS$159.00k0.26% $1.7m
Anthony Foglio
Independent Director6.08yrsUS$147.00k0.23% $1.6m
James Bareuther
Independent Director4.08yrsUS$148.00k0.027% $178.9k
Karen Seaberg
Independent Chairperson5.5yrsUS$187.25k5.16% $34.5m
Lynn Jenkins
Independent Director1.42yrsUS$158.98k0.015% $103.0k
Kerry Skelly
Independent Director0.75yrUS$66.85k0.0056% $37.4k

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: 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 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$668.556m
  • Shares outstanding: 16.90m
  • 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

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 through 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 Analysis2020/06/06 02:15
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.