📊 MGPI Key Takeaways
Is MGPI a Good Investment? Thesis Analysis
MGP Ingredients is experiencing severe operational distress with massive losses despite maintaining strong cash generation, indicating structural profitability challenges rather than temporary headwinds. Revenue decline of 23.8% YoY combined with negative operating margin of -17.6% and negative net margin of -20.1% suggests fundamental business deterioration in a competitive wholesale beverage sector. While liquidity and leverage metrics remain adequate, the company is burning through operational value and must demonstrate a credible path to profitability or risk equity value erosion.
Why Buy MGPI? Key Strengths
- Strong liquidity position with current ratio of 2.61x and quick ratio of 2.40x, indicating ability to meet short-term obligations
- Positive free cash flow of 76.0M despite operating losses, with FCF margin of 14.2% providing financial cushion
- Conservative leverage with debt-to-equity ratio of 0.36x and manageable debt load of 260.1M relative to 1.2B in assets
MGPI Investment Risks to Consider
- Severe profitability collapse with net margin of -20.1% and operating margin of -17.6%, destroying shareholder value on every dollar of sales
- Revenue contraction of 23.8% YoY indicating loss of market share or demand deterioration in the wholesale alcoholic beverages sector
- Negative interest coverage of -13.4x shows inability to cover debt service from operations, relying entirely on asset liquidation and existing cash reserves
- Shareholder equity erosion with ROE of -15.0% and ROA of -8.7%, signaling continued value destruction
Key Metrics to Watch
- Revenue trend stabilization and return to positive growth
- Operating margin recovery path and timeline to profitability
- Operating cash flow sustainability as losses continue to accumulate
- Debt service capacity and covenant compliance under continued losses
MGPI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.61x current ratio provides a solid financial cushion.
MGPI Profitability Ratios
MGPI vs Default Sector
How MGP INGREDIENTS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MGPI Overvalued or Undervalued?
Based on fundamental analysis, MGP INGREDIENTS INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MGPI Balance Sheet & Liquidity
MGPI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: MGP INGREDIENTS INC's revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.80 reflects profitable operations.
MGPI Growth Metrics (YoY)
MGPI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $130.9M | $15.4M | $0.71 |
| Q2 2025 | $145.5M | $11.4M | $0.53 |
| Q1 2025 | $121.7M | -$3.0M | $-0.14 |
| Q3 2024 | $161.5M | $13.2M | $0.58 |
| Q2 2024 | $190.8M | $32.1M | $1.43 |
| Q1 2024 | $170.6M | $20.6M | $0.92 |
| Q3 2023 | $201.1M | $13.2M | $0.58 |
| Q2 2023 | $195.0M | $25.6M | $1.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MGPI Capital Allocation
MGPI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MGP INGREDIENTS INC (CIK: 0000835011)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161605.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772837657.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772837560.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772837400.xml | View → |
| Feb 25, 2026 | 4 | xslF345X05/wk-form4_1772055445.xml | View → |
❓ Frequently Asked Questions about MGPI
What is the AI rating for MGPI?
MGP INGREDIENTS INC (MGPI) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGPI's key strengths?
Claude: Strong liquidity position with current ratio of 2.61x and quick ratio of 2.40x, indicating ability to meet short-term obligations. Positive free cash flow of 76.0M despite operating losses, with FCF margin of 14.2% providing financial cushion.
What are the risks of investing in MGPI?
Claude: Severe profitability collapse with net margin of -20.1% and operating margin of -17.6%, destroying shareholder value on every dollar of sales. Revenue contraction of 23.8% YoY indicating loss of market share or demand deterioration in the wholesale alcoholic beverages sector.
What is MGPI's revenue and growth?
MGP INGREDIENTS INC reported revenue of $536.4M.
Does MGPI pay dividends?
MGP INGREDIENTS INC pays dividends, with $10.3M distributed to shareholders in the trailing twelve months.
Where can I find MGPI SEC filings?
Official SEC filings for MGP INGREDIENTS INC (CIK: 0000835011) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGPI's EPS?
MGP INGREDIENTS INC has a diluted EPS of $-4.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGPI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MGP INGREDIENTS INC has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MGPI stock overvalued or undervalued?
Valuation metrics for MGPI: ROE of -15.0% (sector avg: 15%), net margin of -20.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MGPI stock in 2026?
Our dual AI analysis gives MGP INGREDIENTS INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MGPI's free cash flow?
MGP INGREDIENTS INC's operating cash flow is $121.5M, with capital expenditures of $45.5M. FCF margin is 14.2%.
How does MGPI compare to other Default stocks?
Vs Default sector averages: Net margin -20.1% (avg: 12%), ROE -15.0% (avg: 15%), current ratio 2.61 (avg: 1.8).