MGP Ingredients Stock Analysis, Valuation (NASDAQ:MGPI)
Watch the robo advisor video of MGP Ingredients stock analysis on Amigobulls. Our MGPI analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
MGP Ingredients Inc Stock Rating 2.6/5
Amigobulls MGPI stock analysis uses latest quarter 2018 Q2 financial data like MGP Ingredients revenue growth, profit margins and cash flows. MGP Ingredients valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at MGP Ingredients stock rating which is indicative of the company's financial performance.
Should you buy MGPI stock?
- LTM Net margins were good at 11.8% for MGP Ingredients.
- With a debt/equity ratio of 0.18, MGP Ingredients is comparatively less leveraged than its peers in the Consumer Staples sector.
- MGP Ingredients generates a high return on invested capital of 17.2.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for MGP Ingredients at 25.2.
Should you sell MGPI stock?
- Over the last 5 years, the company registered a poor revenue growth of 0.8.
- Cash flow from operations is 0.1008 times net income which is a negative signal.
- Trading at a PE ratio of 39.9, MGPI stock is overvalued in comparison to sector average multiple of 21.8.
- The company is trading at a price to sales multiple of 3.6, which is overvalued in comparison to the Consumer Staples sector average multiple of 1.6.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -6.9.
Amigobulls MGP Ingredients stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of MGPI stock and helps investors in making good buy and sell decision.
MGP Ingredients revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.