MGP Ingredients, Inc. (MGPI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vital Farms, Inc.

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Fresh Del Monte Produce, Inc.

Cal-Maine Foods, Inc.

Mission Produce, Inc.

Bunge Ltd.

Pilgrim's Pride Corp.

Tilray Brands, Inc.

MGP Ingredients, Inc.

Adecoagro SA

Why is MGP Ingredients, Inc. ?

With a fall in Net Sales of -4.42%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
ROCE(HY) Lowest at -1.7%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.93 times
DEBTORS TURNOVER RATIO(HY) Lowest at 4.76 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.51%, its profits have fallen by -32.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -38.51% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is MGP Ingredients, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MGP Ingredients, Inc.

-36.46%

-1.80

41.82%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.38%

EBIT Growth (5y)

14.81%

EBIT to Interest (avg)

25.19

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.64

Tax Ratio

72.39%

Dividend Payout Ratio

30.82%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.70%

ROE (avg)

14.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.46

EV to EBIT

5.90

EV to EBITDA

4.86

EV to Capital Employed

0.58

EV to Sales

1.12

PEG Ratio

Dividend Yield

ROCE (Latest)

9.87%

ROE (Latest)

9.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 121.21 MM

-25What is not working for the Company

ROCE(HY)

Lowest at -1.7%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.93 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.76 times

NET SALES(Q)

At USD 130.91 MM has Fallen at -14.07%

RAW MATERIAL COST(Y)

Grown by 7.55% (YoY

CASH AND EQV(HY)

Lowest at USD 30.77 MM

PRE-TAX PROFIT(Q)

At USD 22.5 MM has Fallen at -24.29%

NET PROFIT(Q)

At USD 17.42 MM has Fallen at -25.15%

Here's what is working for MGP Ingredients, Inc.

Operating Cash Flow

Highest at USD 121.21 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Depreciation

Highest at USD 6.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for MGP Ingredients, Inc.

Net Sales

At USD 130.91 MM has Fallen at -14.07%

over average net sales of the previous four periods of USD 152.35 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 0.93 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.76 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Pre-Tax Profit

At USD 22.5 MM has Fallen at -24.29%

over average net sales of the previous four periods of USD 29.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 17.42 MM has Fallen at -25.15%

over average net sales of the previous four periods of USD 23.28 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 30.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales