MGP Ingredients shares have had a great year so far…
They’re up 25.4% year to date. But now the important question… will this trend continue?
Let’s take a closer look at the company…
Since its start in 1941, MGP Ingredients has expanded its reach within the beverage industry.
The company now employs 311 people and the whole operation is managed by Augustus Griffin (chief executive officer).
The business is broken down into two segments: Ingredient Solutions, and Distillery Products. MGP Ingredients has also expanded its business recently by acquiring George Remus whiskey brand for an undisclosed amount.
MGP Ingredients revenue is down over the last year…
With the recent downturn in revenue, the overall business is valued at $1.06 billion… but is this price justified?
What are MGP Ingredients Shares Worth?
Shares trade for $62.72 but that doesn’t tell us much. To decide if they’re a good value we should look at the key metrics below…
The stock market is filled with individuals who know the price of everything, but the value of nothing. – Phillip Fisher
Price-to-Earnings: MGP Ingredients shares trade at 32.9 times earnings. That’s above the average for its competitors.
The lower the P/E ratio the better. A high ratio indicates investors are already expecting high earnings growth.
Price-to-Book: MGP Ingredients shares trade at 6.6 times their book value. This is not great compared to its competitors.
MGP Ingredients’s competitor average P/B is 2.6. This ratio varies across industries… so it’s good to always compare to similar companies.
Price-to-Sales: This ratio comes in at 3.2 and gives insight into the company’s sales volume.
The P/S ratio also varies across industries. And the industry average is 1.8… so MGP Ingredients shares look a little more expensive.
Great company research should go much further than these three ratios… but they’re a good place to start.
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