(MGPI) MGP Ingredients - Ratings and Ratios

MGP Ingredients, Inc. (NASDAQ:MGPI) is a leading producer of distilled spirits, branded spirits, and specialty food ingredients, operating globally across three core segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions. The company, founded in 1941 and headquartered in Atchison, Kansas, has established itself as a key player in the distilled spirits and ingredient markets.

The Distillery Solutions segment focuses on processing corn and other grains, including barley, wheat, barley malt, and milo, into high-quality food-grade alcohol and distillery co-products such as dried distillers grains. This segment also provides beverage alcohol for premium applications like bourbon, rye, and other whiskeys, as well as grain neutral spirits used in vodka and gin production. Additional services include warehouse operations, blending, and barrel management.

The Branded Spirits segment offers a diverse portfolio of spirits across multiple price tiers. Premium and super-premium brands include Penelope Bourbon, Yellowstone Bourbon, and Remus Bourbon, while mid-branded spirits like Bradys Irish Cream and Pearl Vodka cater to broader market segments. The segment also includes value brands such as Arrow Cordials and Juarez Tequila, along with private-label offerings, ensuring a wide reach across consumer preferences.

The Ingredient Solutions segment specializes in wheat-based products, including specialty starches like Fibersym, a resistant wheat starch, and specialty proteins under the Arise and Proterra brands. The segment also provides gluten-free pea proteins, commodity wheat starch, and commodity wheat proteins, serving food and non-food applications. Products are sold directly or through distributors to manufacturers and bakeries.

Based on the provided data, MGP Ingredients stock (MGPI) is currently trading at $32.11 with a market capitalization of $678.36 million. The stocks short-term moving averages (SMA 20: $28.96, SMA 50: $29.99) suggest recent upward momentum, while the SMA 200 ($52.37) indicates longer-term weakness. The average true range (ATR: 1.37) reflects moderate volatility. Fundamental metrics show a trailing P/E of 63.78, with a forward P/E of 12.76, signaling potential undervaluation in the future. The price-to-book ratio (0.82) and price-to-sales ratio (1.04) suggest the stock is reasonably valued relative to its assets and revenue. However, the return on equity (RoE: 1.24) is relatively low, indicating modest profitability compared to equity.

Forecast: Based on the technical and fundamental data, MGP Ingredients stock may experience short-term upward movement due to crossing above its SMA 50. However, the significant gap between the current price and SMA 200 suggests potential long-term headwinds. With a forward P/E of 12.76, the stock could offer value if earnings growth materializes. Investors should monitor the companys ability to improve profitability and reduce valuation multiples.