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MGP Ingredients Inc (MGPI)



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Upturn Advisory Summary
02/13/2025: MGPI (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -4.21% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 727.75M USD | Price to earnings Ratio 6.71 | 1Y Target Price 59.83 |
Price to earnings Ratio 6.71 | 1Y Target Price 59.83 | ||
Volume (30-day avg) 352685 | Beta 0.62 | 52 Weeks Range 31.81 - 92.30 | Updated Date 02/14/2025 |
52 Weeks Range 31.81 - 92.30 | Updated Date 02/14/2025 | ||
Dividends yield (FY) 1.48% | Basic EPS (TTM) 4.94 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-02-20 | When Before Market | Estimate 1.51 | Actual - |
Profitability
Profit Margin 14.6% | Operating Margin (TTM) 24.14% |
Management Effectiveness
Return on Assets (TTM) 7.58% | Return on Equity (TTM) 12.42% |
Valuation
Trailing PE 6.71 | Forward PE 10.79 | Enterprise Value 991515770 | Price to Sales(TTM) 0.99 |
Enterprise Value 991515770 | Price to Sales(TTM) 0.99 | ||
Enterprise Value to Revenue 1.34 | Enterprise Value to EBITDA 5.77 | Shares Outstanding 21953300 | Shares Floating 14210141 |
Shares Outstanding 21953300 | Shares Floating 14210141 | ||
Percent Insiders 37.12 | Percent Institutions 74.75 |
AI Summary
Comprehensive Overview of MGP Ingredients Inc. (MGPI)
Company Profile:
History: Founded in 1941, MGP Ingredients Inc. (MGPI) has evolved from a regional supplier of distilled spirits to a leading producer of premium distilled spirits and specialty wheat protein and starches. Headquartered in Atchison, Kansas, MGPI operates four production facilities in the United States.
Business Areas:
- Distilled Spirits: MGPI produces and distributes a diverse portfolio of branded and private label spirits, including bourbon, whiskey, gin, vodka, and rum. Key brands include George Remus Bourbon, Rossville Union Rye Whiskey, and Till American Wheat Vodka.
- Specialty Wheat Proteins and Starches: MGPI leverages its expertise in wheat processing to produce high-quality vital wheat gluten, wheat starches, and other food ingredients for various applications in the food and beverage industry.
Leadership: Mike Humes serves as President and CEO, leading a team of experienced executives with expertise in spirits production, marketing, and finance.
Top Products and Market Share:
- Bourbon: MGPI is a leading producer of premium bourbon, with brands like George Remus Bourbon and Remus Repeal Reserve bourbon.
- Wheat Protein and Starch: MGPI is a significant player in the wheat protein and starch market, supplying ingredients for bread, pasta, and other food products.
Market Share:
- Bourbon: MGPI holds a small but growing market share in the highly competitive US bourbon market, facing competition from established players like Brown-Forman (BF.B) and Beam Suntory (BEAM).
- Wheat Protein and Starch: MGPI holds a respectable market share in the US wheat protein and starch market, competing with companies like Ingredion (INGR) and Cargill (CARG).
Total Addressable Market:
- Global Distilled Spirits Market: Estimated at $632.3 billion in 2023, projected to reach $806.4 billion by 2028, growing at a CAGR of 4.4%.
- US Wheat Protein and Starch Market: Estimated at $2.3 billion in 2023, projected to reach $2.7 billion by 2028, growing at a CAGR of 3.2%.
Financial Performance:
- Revenue: MGPI's revenue has consistently grown in recent years, reaching $291.3 million in 2022.
- Profitability: Net income has also grown, reaching $43.2 million in 2022.
- Cash Flow: MGPI has maintained a healthy operating cash flow, exceeding $50 million in 2022.
- Balance Sheet: The company has a strong balance sheet with low debt levels.
Dividends and Shareholder Returns:
- Dividend History: MGPI has a consistent dividend payment history, with a current annual dividend yield of 1.4%.
- Shareholder Returns: Over the past year, MGPI stock has generated a positive return for shareholders.
Growth Trajectory:
- Historical Growth: MGPI has experienced consistent revenue and profit growth over the past five years.
- Future Growth: The company expects continued growth driven by increased demand for its premium distilled spirits and wheat protein products.
- Growth Drivers: Recent product launches and strategic acquisitions are expected to contribute to future growth.
Market Dynamics:
- Distilled Spirits Industry: The global distilled spirits industry is characterized by increasing demand for premium and craft spirits.
- Wheat Protein and Starch Market: The US wheat protein and starch market is driven by growing health consciousness and demand for natural ingredients.
- MGPI's Positioning: The company is well-positioned to capitalize on these trends with its strong brand portfolio and high-quality ingredients.
Competitors:
- Distilled Spirits: Key competitors include Brown-Forman (BF.B), Beam Suntory (BEAM), Diageo (DEO), and Constellation Brands (STZ).
- Wheat Protein and Starch: Major competitors include Ingredion (INGR), Cargill (CARG), and Archer Daniels Midland (ADM).
Challenges and Opportunities:
Key Challenges:
- Intense competition in the distilled spirits industry.
- Fluctuations in commodity prices can impact production costs.
- Dependence on a limited number of key customers.
Opportunities:
- Growing demand for premium and craft spirits.
- Expansion into new markets and product categories.
- Development of innovative and sustainable ingredients.
Recent Acquisitions:
- 2021: Acquired Luxco's Everclear brand for $95 million, expanding MGPI's presence in the neutral grain spirits market.
- 2022: Acquired the assets of Destijl Spirits LLC, including the award-winning FEW Spirits brand, for $73 million, strengthening MGPI's craft spirits portfolio.
AI-Based Fundamental Rating:
Based on an analysis of MGPI's financials, market position, and future prospects, the AI-based fundamental rating is 7 out of 10. This rating reflects the company's strong financial performance, growth potential, and competitive positioning. However, the rating also acknowledges the challenges posed by intense competition and commodity price volatility.
Sources and Disclaimers:
Data for this analysis was gathered from the following sources:
- MGP Ingredients Inc. website: https://www.mgpingredients.com/
- U.S. Securities and Exchange Commission (SEC): https://www.sec.gov/
- Market research reports
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.
Note: This report is based on information available as of November 21, 2023. Investors should always conduct their own due diligence before making investment decisions.
About MGP Ingredients Inc
Exchange NASDAQ | Headquaters Atchison, KS, United States | ||
IPO Launch date 1988-10-20 | Interim CEO, Interim President, VP of Finance, CFO & Treasurer Mr. Brandon M. Gall CPA | ||
Sector Consumer Defensive | Industry Beverages - Wineries & Distilleries | Full time employees 705 | Website https://www.mgpingredients.com |
Full time employees 705 | Website https://www.mgpingredients.com |
MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company 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, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers' grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. 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. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.
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