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.

Rewards

PE ratio (23.2x) is below the Beverage industry average (31.3x)

Earnings are forecast to grow 17.38% per year

Risk Analysis

No risks detected for MGPI from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

MGPI

2.7%

US Beverage

1.7%

US Market


1 Year Return

-22.4%

MGPI

19.9%

US Beverage

23.2%

US Market

Return vs Industry: MGPI underperformed the US Beverage industry which returned 18.8% over the past year.

Return vs Market: MGPI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MGPIIndustryMarket
7 Day7.5%2.7%1.7%
30 Day8.3%4.0%4.2%
90 Day14.0%3.8%11.9%
1 Year-21.9%-22.4%23.0%19.9%25.8%23.2%
3 Year26.4%22.9%45.8%34.4%52.8%42.9%
5 Year247.4%234.9%55.7%36.2%75.2%55.8%

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?

24.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGPI ($50.95) is trading above our estimate of fair value ($11.2)

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 (23.2x) compared to the Beverage industry average (31.3x).

PE vs Market: MGPI is poor value based on its PE Ratio (23.2x) compared to the US market (18.9x).


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 overvalued based on its PB Ratio (4x) compared to the US Beverage industry average (3.3x).


Next Steps

Future Growth

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

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPI's forecast earnings growth (17.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MGPI's earnings (17.4% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: MGPI's revenue (10% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: MGPI's revenue (10% 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 (6.8%).


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?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MGPI's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MGPI's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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

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

4.1yrs

Average management tenure


CEO

Gus Griffin (59yo)

5.5yrs

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 ($USD2.15M) is about average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

4.1yrs

Average Tenure

64yo

Average Age

Experienced Management: MGPI's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

72yo

Average Age

Experienced Board: MGPI's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$119,37521 Aug 19
Augustus Griffin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,500
Max PriceUS$47.75
BuyUS$13,57516 Aug 19
Brandon Gall
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares250
Max PriceUS$54.30
BuyUS$20,32529 May 19
Stephen Glaser
EntityIndividual
Shares300
Max PriceUS$67.75
SellUS$60,09319 Mar 19
Laidacker Seaberg
EntityIndividual
Shares773
Max PriceUS$77.74
SellUS$60,10819 Mar 19
Karen Seaberg
EntityIndividual
Role
Chairman of the Board
Independent Chairperson
Shares773
Max PriceUS$77.76
SellUS$410,90007 Mar 19
David Dykstra
EntityIndividual
Shares5,000
Max PriceUS$82.18

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Randy Schrick (69yo)

    Consultant

    • Tenure: 4.1yrs
    • Compensation: US$619.76k
  • Dave Rindom (64yo)

    VP & Chief Administrative Officer

    • Tenure: 4.1yrs
    • Compensation: US$977.26k
  • Ody Maningat (64yo)

    Chief Science Officer and VP of Ingredients Research & Development

    • Tenure: 4.3yrs
  • TJ Lynn

    VP, General Counsel & Corporate Secretary

    • Tenure: 2.4yrs
  • Michael Lasater (51yo)

    Vice President of Sales and Marketing

    • Gus Griffin (59yo)

      CEO, President & Director

      • Tenure: 5.5yrs
      • Compensation: US$2.15m
    • Greg Manis

      Corporate Director of Communications

      • Brandon Gall

        VP of Finance & CFO

        • Tenure: 0.8yrs
      • Mark Davidson

        Corporate Controller

        • Tenure: 0.6yrs

      Board Members

      • Bud Cray (96yo)

        Chairman Emeritus

        • Compensation: US$64.88k
      • Terry Dunn (70yo)

        Independent Director

        • Tenure: 5.7yrs
        • Compensation: US$108.00k
      • M. Strandjord (73yo)

        Independent Director

        • Tenure: 6.1yrs
        • Compensation: US$117.50k
      • Tony Foglio (73yo)

        Independent Director

        • Tenure: 5.7yrs
        • Compensation: US$106.50k
      • Jim Bareuther (73yo)

        Independent Director

        • Tenure: 3.7yrs
        • Compensation: US$104.00k
      • Dave Colo (56yo)

        Independent Director

        • Tenure: 4.4yrs
        • Compensation: US$110.50k
      • Karen Seaberg (72yo)

        Independent Chairperson

        • Tenure: 5.1yrs
        • Compensation: US$134.50k
      • Gus Griffin (59yo)

        CEO, President & Director

        • Tenure: 5.5yrs
        • Compensation: US$2.15m
      • Lynn Jenkins (55yo)

        Independent Director

        • Tenure: 0.9yrs
      • Kerry Skelly

        Director

        • Tenure: 0.3yrs

      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$898.688m
      • 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 Analysis2020/01/17 01:33
      End of Day Share Price2020/01/16 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.