MGP Ingredients Stock Price and Value Analysis

Should you buy MGP Ingredients stock? (NasdaqGS:MGPI). Let's see how it does in our automated value investing analysis system.

MGPI Free Cash Flow Trend

Free Cash Flow trendline for MGPI
Free Cash Flow trendline for MGP Ingredients

Based on historical returns, we believe that MGP Ingredients can grow its free cash at a rate of about 0%. That's positive!

AdvantagesDisadvantages
  • This company is solid.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This company has wild ups and downs.
  • This stock looks overpriced.

Inside the MGPI Numbers

MGPI Price
(MGP Ingredients stock price per share)
$83.43
[?] MGPI Fair Price
(based on intrinsic value)
$13.86
[?] MGPI Safety Price (based on a variable margin of safety) $9.01
[?] PE Ratio versus Sector 122% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 90% higher than other Packaged Foods stocks
[?] Cash Yield 0.03%
[?] Free Cash Flow Jitter 199%
[?] Dividend Yield 1%
Shares Shorted 2,507,825

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,507,825 shares shorted. With 12,627,274 shares available for purchase and an average trading volume over the past 10 trading days of 202,880, it would take at least 12.361 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is MGP Ingredients Stock on Sale?

We believe that MGP Ingredients may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

MGP Ingredients looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MGPI Stock?

Does MGP Ingredients have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.