MGP Ingredients, Inc.

MGP Ingredients operates three segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions. Distillery Solutions produces food grade alcohol for beverages, industrial alcohol, and distillery co-products. Branded Spirits offers premium to value branded spirits and private label products. Ingredient Solutions provides specialty wheat starches, proteins, and gluten-free textured pea proteins. Products are sold directly or through distributors to manufacturers and processors of packaged goods. The company was founded in 1941 and is based in Kansas.

Overview

Sector

Beverages

Target Price

15.4 USD

Current Price

29.0 USD

Potential

-47%

Strengths

Current Price to Earnings Ratio (17.37) is lower than the sector mean (45.56).
Price to book ratio (0.72) is lower than the sector mean (5.08).
EV/EBITDA (4.77) is lower than the sector mean (22.01).
EV/EBIT (11.71) is lower than the sector mean.
Price to free cash flow (19.36) is lower than the sector mean.
Strong EBITDA Margin of 26.84%.

Weaknesses

With a depreciation Potential of -47.08%, based on our fundamental analysis, it suggests the stock may be overvalued.

Key Financial Data

Indicator	Value
PER	17.8
EV/EBITDA	4.8
Price/Free Cash Flow'	19.8
ROIC	8.8%
Net Debt/EBITDA	1.6