NasdaqGS:MGPI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet.


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

1.3%

MGPI

-2.1%

US Beverage

-2.4%

US Market


1 Year Return

-14.0%

MGPI

0.6%

US Beverage

18.2%

US Market

Return vs Industry: MGPI underperformed the US Beverage industry which returned 1.6% over the past year.

Return vs Market: MGPI underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

MGPIIndustryMarket
7 Day1.3%-2.1%-2.4%
30 Day3.8%1.5%4.2%
90 Day7.0%3.6%6.3%
1 Year-12.9%-14.0%3.3%0.6%20.9%18.2%
3 Year-34.3%-35.8%22.9%13.4%41.2%31.8%
5 Year157.9%146.9%44.2%26.3%84.8%63.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGPI ($41.24) is trading below our estimate of fair value ($96.36)

Significantly Below Fair Value: MGPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGPI is good value based on its PE Ratio (17.9x) compared to the US Beverage industry average (32x).

PE vs Market: MGPI is good value based on its PE Ratio (17.9x) compared to the US market (19x).


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 (2.9x) compared to the US Beverage industry average (5.2x).


Next Steps

Future Growth

How is MGP Ingredients forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPI's forecast earnings growth (10.8% per year) is above the savings rate (2.2%).

Earnings vs Market: MGPI's earnings (10.8% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: MGPI's revenue (5.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MGPI's revenue (5.6% 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?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGPI has high quality earnings.

Growing Profit Margin: MGPI's current net profit margins (10.5%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: MGPI's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: MGPI's earnings growth over the past year (3.4%) is below its 5-year average (9.2% per year).

Earnings vs Industry: MGPI earnings growth over the past year (3.4%) underperformed the Beverage industry 17.5%.


Return on Equity

High ROE: MGPI's Return on Equity (16.3%) 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 ($217.0M) exceed its short term liabilities ($39.2M).

Long Term Liabilities: MGPI's short term assets ($217.0M) exceed its long term liabilities ($75.1M).


Debt to Equity History and Analysis

Debt Level: MGPI's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: MGPI's debt to equity ratio has increased from 8.6% to 25.7% over the past 5 years.

Debt Coverage: MGPI's debt is well covered by operating cash flow (36.3%).

Interest Coverage: MGPI's interest payments on its debt are well covered by EBIT (30.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGPI's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: MGPI's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 (19.1%), MGPI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGPI's dividends in 3 years are forecast to be well covered by earnings (15.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Dave Colo (57 yo)

0.42

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, President0.42yrUS$152.00k0.088%
$ 611.1k
Brandon Gall
VP of Finance & CFO1.5yrsUS$530.21k0.12%
$ 839.2k
David Rindom
VP & Chief Administrative Officer4.83yrsUS$730.81k0.19%
$ 1.3m
Clodualdo Maningat
Chief Science Officer and VP of Ingredients Research & Development5yrsno datano data
Thomas Lynn
VP, General Counsel & Corporate Secretary3.17yrsno 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 Controller1.33yrsno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: MGPI's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Colo
CEO, President0.42yrUS$152.00k0.088%
$ 611.1k
Cloud Cray
Chairman Emeritusno dataUS$64.88kno data
Terrence Dunn
Independent Director6.42yrsUS$152.00k0.43%
$ 3.0m
M. Strandjord
Independent Director6.83yrsUS$159.00k0.27%
$ 1.9m
Anthony Foglio
Independent Director6.42yrsUS$147.00k0.24%
$ 1.7m
James Bareuther
Independent Director4.42yrsUS$148.00k0.040%
$ 276.8k
Karen Seaberg
Independent Chairperson5.83yrsUS$187.25k4.45%
$ 31.0m
Lynn Jenkins
Independent Director1.75yrsUS$158.98k0.031%
$ 214.3k
Kerry A. Skelly
Independent Director1.08yrsUS$66.85k0.017%
$ 119.9k
Lori Mingus
Director0.33yrno data0.0057%
$ 39.7k

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 only sold shares 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$697.505m
  • Shares outstanding: 16.91m
  • 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 Produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:03
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.