Mgp Ingredients Intrinsic Value – Is MGP Ingredients Stock Under or Overvalued?
December 12, 2023
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MGP ($NASDAQ:MGPI) Ingredients Inc. is an American producer of distilled spirits and specialty wheat proteins and starches. This makes it one of the most valuable companies in the United States. With its current market capitalization, the question of whether or not MGP Ingredients Inc. stock is under or overvalued is a pertinent one. To answer this question, it is necessary to consider both the company’s financial performance and the current state of the stock market in general. In terms of the company’s financial performance, MGP Ingredients Inc. has had a solid year. The current state of the stock market should also be taken into consideration when determining whether MGP Ingredients Inc stock is under or overvalued. This suggests that stocks in general are currently overvalued. Taking into account both the company’s financial performance and the current state of the stock market, it appears that MGP Ingredients Inc stock is likely slightly overvalued at the present time.
However, considering its solid financial performance and potential for further growth, it may still be a good long-term investment opportunity for investors looking for a reliable source of income.
Market Price
On Wednesday, MGP INGREDIENTS stock opened at $91.8 and closed at $83.8, a significant drop of 9.1% from its previous closing price of 92.2. This significant decrease in the stock price has raised concern about whether it is undervalued or not. It is important to analyze the company’s financial statements and performance in order to determine if the company is indeed undervalued or not. Factors such as its successes in the past, current growth potential, and strength of the company’s management team will be key in deciding if MGP INGREDIENTS is currently undervalued or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mgp Ingredients. More…
| Total Revenues | Net Income | Net Margin |
| 812.63 | 98.12 | 14.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mgp Ingredients. More…
| Operations | Investing | Financing |
| 65.29 | -162.74 | 74.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mgp Ingredients. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.37k | 548.18 | 37.23 |
Key Ratios Snapshot
Some of the financial key ratios for Mgp Ingredients are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.0% | 42.1% | 16.5% |
| FCF Margin | ROE | ROA |
| 0.9% | 10.3% | 6.1% |
Analysis – Mgp Ingredients Intrinsic Value
At GoodWhale, we recently conducted an analysis of MGP INGREDIENTS‘s financials. Our proprietary Valuation Line was used to calculate the fair value of an MGP INGREDIENTS share, which we found to be around $102.3. Currently, MGP INGREDIENTS stock is trading at $83.8, which represents a fair price that is undervalued by 18.1%. We believe there is an opportunity to purchase MGP INGREDIENTS shares now at a discounted price. More…
Peers
The company was founded in 1941 and is headquartered in Atchison, Kansas. MGPI has three business segments: distillery products, food ingredients, and pharmaceutical ingredients. The company operates in the United States, Canada, the United Kingdom, Europe, Asia, and South America. MGPI’s main competitors are IFB Agro Industries Ltd, Exotic Food PCL, and PT Sumber Alfaria Trijaya Tbk.
– IFB Agro Industries Ltd ($BSE:507438)
IFB Agro Industries Ltd is an Indian company that manufactures and markets a range of food products. The company has a market cap of 5.07B as of 2022 and a return on equity of 8.97%. IFB Agro Industries Ltd offers a wide range of food products including bread, biscuits, snacks, and other confectionery items. The company also manufactures and markets a range of non-food products such as animal feed, fertilizers, and other agricultural products.
– Exotic Food PCL ($SET:XO)
Exotic Food PCL is a food processing company that operates in Thailand. The company has a market capitalization of 5.19 billion as of 2022 and a return on equity of 21.4%. The company produces and sells processed food products, such as canned fruits and vegetables, frozen foods, and dried foods. It also operates a number of restaurants in Thailand.
– PT Sumber Alfaria Trijaya Tbk ($IDX:AMRT)
Sumber Alfaria Trijaya Tbk is an Indonesian company that operates in the food and beverage retail industry. As of 2022, the company has a market capitalization of 109.21 trillion rupiah and a return on equity of 21.87%. The company operates a chain of supermarkets and hypermarkets under the Alfamart and Alfa Midi brand names.
Summary
MGP Ingredients Inc. is a leading producer of distilled spirits and specialty wheat proteins and starches.
However, since then, the stock has seen a slight dip which has made some investors question whether it is currently over or undervalued. Looking into the company’s financials shows that it has seen strong revenue growth and profitability over the past five years.
Additionally, its balance sheet reveals it has a strong cash position and conservatively managed debt. On the other hand, the stock has had a relatively volatile history and with the pandemic still impacting the industry, future performance could be uncertain. Overall, there are some positive signs for investors interested in MGP Ingredients Inc., but further research is recommended before making any investment decisions.
