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MGP Ingredients

Nasdaq:MGPI
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGPI
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. The last earnings update was 53 days ago. More info.


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  • MGP Ingredients has significant price volatility in the past 3 months.
MGPI Share Price and Events
7 Day Returns
7.3%
NasdaqGS:MGPI
1%
US Beverage
2.2%
US Market
1 Year Returns
-30%
NasdaqGS:MGPI
13.4%
US Beverage
3.8%
US Market
MGPI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MGP Ingredients (MGPI) 7.3% 3% -16.3% -30% 81.6% 766%
US Beverage 1% 1.9% 10.6% 13.4% 19.9% 35.9%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • MGPI underperformed the Beverage industry which returned 13.4% over the past year.
  • MGPI underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
MGPI
Industry
5yr Volatility vs Market

MGPI Value

 Is MGP Ingredients undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MGP Ingredients to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MGP Ingredients.

NasdaqGS:MGPI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MGPI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.564 (1 + (1- 21%) (4.44%))
0.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:MGPI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MGP Ingredients is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MGPI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 16.98 Analyst x1 15.79
2020 21.78 Analyst x1 18.85
2021 25.73 Est @ 18.14% 20.72
2022 29.21 Est @ 13.52% 21.88
2023 32.22 Est @ 10.28% 22.44
2024 34.80 Est @ 8.02% 22.55
2025 37.04 Est @ 6.43% 22.33
2026 39.01 Est @ 5.32% 21.88
2027 40.78 Est @ 4.54% 21.27
2028 42.41 Est @ 4% 20.58
Present value of next 10 years cash flows $208.29
NasdaqGS:MGPI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $42.41 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$913.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $913.80 ÷ (1 + 7.5%)10
$443.45
NasdaqGS:MGPI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $208.29 + $443.45
$651.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $651.74 / 17.01
$38.3
NasdaqGS:MGPI Discount to Share Price
Calculation Result
Value per share (USD) From above. $38.30
Current discount Discount to share price of $66.25
= -1 x ($66.25 - $38.30) / $38.30
-73%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MGP Ingredients is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MGP Ingredients's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MGP Ingredients's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MGPI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.22
NasdaqGS:MGPI Share Price ** NasdaqGS (2019-06-21) in USD $66.25
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 30.6x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MGP Ingredients.

NasdaqGS:MGPI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MGPI Share Price ÷ EPS (both in USD)

= 66.25 ÷ 2.22

29.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGP Ingredients is good value based on earnings compared to the US Beverage industry average.
  • MGP Ingredients is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MGP Ingredients's expected growth come at a high price?
Raw Data
NasdaqGS:MGPI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
15.1%per year
United States of America Beverage Industry PEG Ratio Median Figure of 13 Publicly-Listed Beverage Companies 1.97x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:MGPI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.87x ÷ 15.1%

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGP Ingredients is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MGP Ingredients's assets?
Raw Data
NasdaqGS:MGPI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $12.06
NasdaqGS:MGPI Share Price * NasdaqGS (2019-06-21) in USD $66.25
United States of America Beverage Industry PB Ratio Median Figure of 29 Publicly-Listed Beverage Companies 5.5x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NasdaqGS:MGPI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MGPI Share Price ÷ Book Value per Share (both in USD)

= 66.25 ÷ 12.06

5.5x

* Primary Listing of MGP Ingredients.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGP Ingredients is good value based on assets compared to the US Beverage industry average.
X
Value checks
We assess MGP Ingredients's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. MGP Ingredients has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGPI Future Performance

 How is MGP Ingredients expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MGP Ingredients expected to grow at an attractive rate?
  • MGP Ingredients's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MGP Ingredients's earnings growth is expected to exceed the United States of America market average.
  • MGP Ingredients's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MGPI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MGPI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 15.1%
NasdaqGS:MGPI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.9%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MGPI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MGPI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 431 58 49 2
2019-12-31 396 48 43 2
NasdaqGS:MGPI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 377 29 37
2018-12-31 376 33 37
2018-09-30 359 19 37
2018-06-30 351 24 42
2018-03-31 348 35 41
2017-12-31 347 33 41
2017-09-30 340 34 36
2017-06-30 334 30 32
2017-03-31 329 20 32
2016-12-31 318 20 30
2016-09-30 319 8 28
2016-06-30 319 10 26

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MGP Ingredients's earnings are expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
  • MGP Ingredients's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MGPI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from MGP Ingredients Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGPI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.85 2.85 2.85 1.00
2019-12-31 2.55 2.55 2.55 1.00
NasdaqGS:MGPI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.22
2018-12-31 2.17
2018-09-30 2.22
2018-06-30 2.52
2018-03-31 2.45
2017-12-31 2.44
2017-09-30 2.18
2017-06-30 1.92
2017-03-31 1.91
2016-12-31 1.82
2016-09-30 1.71
2016-06-30 1.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MGP Ingredients will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MGP Ingredients's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MGP Ingredients has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGPI Past Performance

  How has MGP Ingredients performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MGP Ingredients's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MGP Ingredients has delivered over 20% year on year earnings growth in the past 5 years.
  • MGP Ingredients's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MGP Ingredients's 1-year earnings growth is negative, it can't be compared to the US Beverage industry average.
Earnings and Revenue History
MGP Ingredients's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MGP Ingredients Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGPI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 377.23 37.48 33.04
2018-12-31 376.09 36.58 33.45
2018-09-30 359.43 37.42 33.45
2018-06-30 350.73 42.34 34.02
2018-03-31 348.24 41.15 34.02
2017-12-31 347.45 40.83 33.11
2017-09-30 340.40 36.42 31.10
2017-06-30 333.96 31.98 29.93
2017-03-31 328.60 31.87 28.02
2016-12-31 318.26 30.23 26.69
2016-09-30 318.63 28.45 24.64 0.75
2016-06-30 319.06 25.72 23.16 0.75
2016-03-31 324.03 27.25 24.78 0.75
2015-12-31 327.60 25.32 25.68
2015-09-30 322.42 26.48 25.21
2015-06-30 319.61 25.84 24.68
2015-03-31 314.82 23.18 21.64
2014-12-31 313.40 22.84 18.48 1.62
2014-09-30 314.37 15.59 23.10
2014-06-30 317.03 3.42 24.90
2014-03-31 315.86 -1.24 24.68
2013-12-31 323.26 -5.81 25.29
2013-09-30 332.32 -5.82 23.87
2013-06-30 328.26 0.78 23.15
2013-03-31 334.40 -0.27 24.66
2012-12-31 334.34 1.50 26.54
2012-09-30 318.32 16.81 25.90
2012-06-30 318.36 10.84 24.93

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MGP Ingredients has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MGP Ingredients used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • MGP Ingredients's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MGP Ingredients's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MGP Ingredients has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGPI Health

 How is MGP Ingredients's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MGP Ingredients's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MGP Ingredients is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MGP Ingredients's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MGP Ingredients's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MGP Ingredients Company Filings, last reported 2 months ago.

NasdaqGS:MGPI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 205.12 50.04
2018-12-31 201.44 32.01 5.03
2018-09-30 190.36 45.12
2018-06-30 182.36 40.46 2.28
2018-03-31 175.39 32.24 1.12
2017-12-31 168.73 24.55 3.08
2017-09-30 159.44 34.16 7.11
2017-06-30 160.49 43.73 7.91
2017-03-31 154.14 43.69
2016-12-31 146.29 36.00 1.57
2016-09-30 137.79 45.47
2016-06-30 129.83 41.37 1.55
2016-03-31 122.96 37.44
2015-12-31 116.16 33.46 0.75
2015-09-30 109.28 28.81 0.13
2015-06-30 117.00 9.58 4.36
2015-03-31 108.48 10.23 6.39
2014-12-31 104.37 9.90 5.64
2014-09-30 97.00 16.66
2014-06-30 90.64 23.41 0.88
2014-03-31 85.35 23.24
2013-12-31 81.60 23.17 2.86
2013-09-30 81.46 30.43
2013-06-30 87.69 30.66
2013-03-31 87.58 28.19
2012-12-31 86.83 32.74
2012-09-30 86.51 33.64
2012-06-30 85.06 31.07
  • MGP Ingredients's level of debt (21%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (27.2% vs 21% today).
  • Debt is well covered by operating cash flow (67%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 39.8x coverage).
X
Financial health checks
We assess MGP Ingredients's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MGP Ingredients has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGPI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.6%
Current annual income from MGP Ingredients dividends.
If you bought $2,000 of MGP Ingredients shares you are expected to receive $12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MGP Ingredients's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • MGP Ingredients's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MGPI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MGPI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:MGPI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.400 0.619
2019-02-27 0.400 0.500
2018-11-01 0.320 0.484
2018-08-02 0.320 0.424
2018-05-02 0.320 0.358
2018-02-22 0.320 0.375
2017-11-02 0.160 0.207
2017-08-02 0.160 0.266
2017-05-04 0.160 0.303
2017-02-17 0.160 0.314
2016-11-02 0.080 0.175
2016-08-03 0.080 0.209
2016-05-04 0.320 0.939
2016-03-10 0.080 0.326
2015-11-05 0.060 0.273
2015-08-06 0.060 0.374
2015-03-12 0.060 0.383
2014-11-13 0.050 0.333
2014-11-12 0.050 0.395
2014-08-07 0.050 0.420
2014-03-05 0.050 0.737
2013-11-13 0.050 0.935
2013-11-12 0.050 1.021
2013-08-05 0.050 0.950
2013-03-05 0.050 1.004
2012-11-09 0.050 1.390
2012-11-08 0.100 2.869
2012-08-09 0.050 1.405
2012-03-02 0.100 2.518
2011-08-31 0.050 0.904
2011-05-10 0.050 0.663
2011-02-09 0.050 0.587
2010-08-26 0.050 0.559
2010-05-11 0.000 0.000
2010-02-11 0.000 0.000
2010-02-10 0.000 0.000
2009-11-05 0.000 0.000
2009-09-11 0.000 0.000
2009-09-10 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGP Ingredients is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • MGP Ingredients is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of MGP Ingredients's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of MGP Ingredients's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess MGP Ingredients's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MGP Ingredients afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MGP Ingredients has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGPI Management

 What is the CEO of MGP Ingredients's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gus Griffin
COMPENSATION $2,153,228
AGE 58
TENURE AS CEO 4.9 years
CEO Bio

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 and spirits company with annual sales of approximately $4 billion, spanned 24 years. He joined MGP Ingredients, Inc., headquartered in Louisville, Ky., as a merchandising representative in 1987 and later moved into sales management. He served as an Executive Vice President of Marketing for Next Level Spirits from April 2013 to January 2014. He servced as Brand and Business Consultant for Nelson's Green Brier Distillery from November 2011 to March 2013. He served as Senior Vice President, Global Managing Director for Brown Forman Corporation's flagship Jack Daniels business from January 2008 to April 2011. From 1990 to 1997, he advanced through a series of increasingly important brand management roles in Brown-Forman's U.S. marketing organization. His brand assignments included Old Forester Bourbon, Southern Comfort Liqueur, Southern Comfort Cocktails, Jack Daniel's Beer and Early Times Kentucky Whiskey. In 1997, he served as Vice President and Managing Director of Brown-Forman's Pacific Region, relocating to Sydney, Australia, to lead all aspects of this multi-million dollar operating unit. He returned to the company's headquarters in Louisville in 2001, assuming responsibility for the Jack Daniel's brand for the Asia Pacific Region. Within a year, he served as Vice President and Managing Director for West Main Interactive, a wholly-owned subsidiary of Brown-Forman in the digital and relationship marketing arena. His accomplishments led to his being named vice president and regional director for Brown-Forman's Southern Europe operating unit that encompassed Spain, Portugal, France, Belgium, Italy and Greece. During his two years in this role, he led the successful turnaround of this business unit, significantly growing the region's profitability. With a promotion to senior vice president and global managing director for the company's Southern Comfort brand in 2007, he returned to Brown-Forman's headquarters to lead a worldwide marketing team and ensure alignment between brand strategies and marketing practices. He transitioned to senior vice president and global managing director for the Jack Daniel's brand franchise in 2008, leading all facets of building this brand worldwide over the following three years. Mr. Griffin has been a Director of MGP Ingredients, Inc. since August 11, 2014. He was Board Member of Hartmann Luggage. He was educated at the College of William and Mary, Williamsburg, Va., where he received a bachelor of arts degree in economics in 1982 and a master's degree in business administration in 1987.

CEO Compensation
  • Gus's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Gus's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MGP Ingredients management team in years:

3.5
Average Tenure
63
Average Age
  • The tenure for the MGP Ingredients management team is about average.
Management Team

Gus Griffin

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
58
TENURE
4.9 yrs

Dave Rindom

TITLE
VP & Chief Administrative Officer
COMPENSATION
$977K
AGE
63
TENURE
3.5 yrs

Mark Davidson

TITLE
Corporate Controller

Ody Maningat

TITLE
Chief Science Officer and VP of Ingredients Research & Development
AGE
63
TENURE
3.7 yrs

TJ Lynn

TITLE
VP, General Counsel & Corporate Secretary
TENURE
1.8 yrs

Greg Manis

TITLE
Corporate Director of Communications

Michael Lasater

TITLE
Vice President of Sales and Marketing
AGE
50

Randy Schrick

TITLE
Consultant
COMPENSATION
$620K
AGE
68
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the MGP Ingredients board of directors in years:

4.8
Average Tenure
70
Average Age
  • The tenure for the MGP Ingredients board of directors is about average.
Board of Directors

Karen Seaberg

TITLE
Chairperson
COMPENSATION
$135K
AGE
71
TENURE
4.5 yrs

Gus Griffin

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
58
TENURE
4.8 yrs

Bud Cray

TITLE
Chairman Emeritus
COMPENSATION
$65K
AGE
95

M. Strandjord

TITLE
Independent Director
COMPENSATION
$118K
AGE
72
TENURE
5.5 yrs

Terry Dunn

TITLE
Independent Director
COMPENSATION
$108K
AGE
69
TENURE
5.1 yrs

Dave Colo

TITLE
Independent Director
COMPENSATION
$111K
AGE
55
TENURE
3.8 yrs

Tony Foglio

TITLE
Independent Director
COMPENSATION
$107K
AGE
72
TENURE
5.1 yrs

Skip Page

TITLE
Independent Director
COMPENSATION
$104K
AGE
62
TENURE
5.1 yrs

Jim Bareuther

TITLE
Independent Director
COMPENSATION
$104K
AGE
72
TENURE
3.1 yrs

Lynn Jenkins

TITLE
Director
AGE
54
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by MGP Ingredients insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
29. May 19 Buy Stephen Glaser Individual 10. May 19 10. May 19 300 $67.75 $20,325
19. Mar 19 Sell Karen Seaberg Individual 15. Mar 19 15. Mar 19 -773 $77.76 $-60,108
19. Mar 19 Sell Laidacker Seaberg Individual 15. Mar 19 15. Mar 19 -773 $77.74 $-60,093
07. Mar 19 Sell David Dykstra Individual 04. Mar 19 04. Mar 19 -5,000 $82.18 $-410,900
18. Dec 18 Buy Michael Buttshaw Individual 14. Dec 18 14. Dec 18 425 $56.00 $23,800
14. Dec 18 Buy Augustus Griffin Individual 14. Dec 18 14. Dec 18 2,000 $55.50 $111,000
07. Nov 18 Buy Thomas Pigott Individual 06. Nov 18 06. Nov 18 1,000 $65.91 $65,910
04. Sep 18 Buy George Page Individual 28. Aug 18 28. Aug 18 1,000 $73.26 $73,260
07. Aug 18 Buy Augustus Griffin Individual 07. Aug 18 07. Aug 18 1,000 $75.05 $75,050
07. Aug 18 Sell Stephen Glaser Individual 06. Aug 18 06. Aug 18 -390 $75.32 $-29,375
07. Aug 18 Buy Anthony Foglio Individual 06. Aug 18 06. Aug 18 5,000 $75.52 $377,600
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Management checks
We assess MGP Ingredients's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MGP Ingredients has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGPI News

Simply Wall St News

The MGP Ingredients (NASDAQ:MGPI) Share Price Has Soared 761%, Delighting Many Shareholders

Indeed, the MGP Ingredients share price has gained 85% in three years. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … As it happens, MGP Ingredients's TSR for the last 5 years was 789%, which exceeds the share price return mentioned earlier.

Simply Wall St -

MGP Ingredients, Inc. (NASDAQ:MGPI) Has A ROE Of 19%

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for MGP Ingredients: 19% = US$37m ÷ US$205m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does MGP Ingredients Have A Good Return On Equity? … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Is Now The Time To Look At Buying MGP Ingredients, Inc. (NASDAQ:MGPI)?

As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Is there still an opportunity here to buy. … Let’s examine MGP Ingredients’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

One Thing To Remember About The MGP Ingredients, Inc. (NASDAQ:MGPI) Share Price

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Are Insiders Selling MGP Ingredients, Inc. (NASDAQ:MGPI) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in MGP Ingredients, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

Is MGP Ingredients, Inc.'s (NASDAQ:MGPI) Balance Sheet Strong Enough To Weather A Storm?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

What Does MGP Ingredients, Inc.'s (NASDAQ:MGPI) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … MGP Ingredients has a price to earnings ratio of 35.45, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

MGP Ingredients, Inc.'s (NASDAQ:MGPI) Earnings Dropped -10%, Did Its Industry Show Weakness Too?

After looking at MGP Ingredients, Inc.'s (NASDAQ:MGPI) latest earnings update (31 December 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … MGPI's trailing twelve-month earnings (from 31 December 2018) of US$37m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which MGPI is growing has slowed down

Simply Wall St -

If You Had Bought MGP Ingredients Shares Five Years Ago You'd Have Made 1256%

(NASDAQ:MGPI) share price has soared 1256% over five years. … During five years of share price growth, MGP Ingredients achieved compound earnings per share (EPS) growth of 90% per year. … This EPS growth is higher than the 68% average annual increase in the share price.

Simply Wall St -

These Fundamentals Make MGP Ingredients, Inc. (NASDAQ:MGPI) Truly Worth Looking At

Help shape the future of investing tools and you could win a $250 gift card! … Looking at the company as a whole, as a potential stock investment, I believe MGPI has a lot to offer. … is a company with great financial health as well as a

Simply Wall St -

MGPI Company Info

Description

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.

Details
Name: MGP Ingredients, Inc.
MGPI
Exchange: NasdaqGS
Founded: 1941
$1,126,555,337
17,014,882
Website: http://www.mgpingredients.com
Address: MGP Ingredients, Inc.
Cray Business Plaza,
100 Commercial Street,
Atchison,
Kansas, 66002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MGPI Common Stock Nasdaq Global Select US USD 20. Oct 1988
DB M1I Common Stock Deutsche Boerse AG DE EUR 20. Oct 1988
BST M1I Common Stock Boerse-Stuttgart DE EUR 20. Oct 1988
Number of employees
Current staff
Staff numbers
332
MGP Ingredients employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:42
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/05/01
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.