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Mgp Ingredients Inc
MGPI
Wholesale-Beer, Wine & Distilled Alcoholic Beverages
Mkt Cap
$2.044BPE
20.83Debt
$329.9MCash
$28.03MEV
$2.346BFCF
$7.12MP/E Ratio
20.83Debt
$329.9MCash
$28.03MEV
$2.346BFCF
$7.12MMGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, branded spirits, and food ingredients in the United States and internationally. It operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon and rye, whiskeys, as well as grain neutral spirits, include 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; distillers feed and related co-products, such as distillers feed and corn oil; and warehouse services, include barrel put away, storage, and retrieval, as well as blending services. The Branded Spirits segment provides ultra-premium, super premium, premium, mid, and value branded distilled spirits. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; 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. MGP Ingredients, Inc. was founded in 1941 and is headquartered in Atchison, Kansas.
Sector
DCF
Discounted Cash Flow Valuation of Mgp Ingredients Inc
Value
Growth
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%
Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $7.12M | $8.575M | $10.18M | $11.91M | $13.73M | $15.6M | $17.45M | $19.22M | $20.84M | $22.24M | $23.35M | $233.5M |
| DCF | $7.457M | $7.698M | $7.832M | $7.852M | $7.755M | $7.544M | $7.225M | $6.812M | $6.322M | $5.772M | $57.72M | |
| Value | $130M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 20%
Earnings Stability 84%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 140% | 130% | 130% | 180% | 180% | 11% | 10% | 14% | 14% | 12% |
| ROA | 17% | 20% | 20% | 22% | 18% | 15% | 15% | 12% | 13% | 9.9% |
| ROE | 22% | 22% | 21% | 24% | 18% | 17% | 15% | 14% | 15% | 12% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +68.75%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -38.14%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +15.74%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.8%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +17.15%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.77%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 1.46 | -3.16 | 22.75 | 2.06 | 13.54 | 14.01 | 1.24 | 5.95 | 5.55 | 46.33 |
| Debt Equity | 0.12 | 0.32 | 0.28 | 0.15 | 0.16 | 0.18 | 0.16 | 0.38 | 0.32 | 0.40 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 46.33.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.52.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 70% | 100% | 29% | 25% | 30% |
| Net Income | 23% | 22% | 41% | 20% | 6.2% |
| Stockholders Equity | 30% | 35% | 48% | 16% | 5.5% |
| FCF | - | 29% | 140% | 6.7% | 12% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +102.69%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +30.42%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +21.61%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +6.18%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +34.65%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +5.49%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +28.57%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +12.26%.