$MGP Ingredients (MGPI.US)$An American company listed in 198...

In the past 5 years, revenue has increased for 4 years, with an average growth rate of 17.6%, operating profit for 4 years excluding 2019, with an average growth rate of 28.4% and an average net profit growth rate of 21.3%. Interest expenses in 2022 account for 3.7% of operating profit, and the interest burden is very light. The gross margin increased from 22.2% to 32.4% in the past 5 years, and the return on net assets fluctuated from 20% to 15.6%.

In the first three quarters of 2023, revenue increased by 5.2%, operating profit increased by 7.4%, and net profit shrank by 11.9% due to impairment.

The balance ratio has increased from 27.5% to 35.6% over the past 5 years. The sharp increase in goodwill in 2021 indicates that there have been acquisitions. This explains the rapid increase in revenue and profit in the past two years. Usually, acquisition-driven growth time is limited, and there may be depreciation pressure later. This was reflected in the 3rd quarter of 2023.

The ratio and growth rate of accounts receivable are relatively normal, but inventory is growing too fast. Currently, it is close to half of revenue, which may be related to changes in the scope of business. Goodwill and other intangible assets account for 72.6% of net assets, long-term loans account for 38% of net assets, and the actual leverage ratio is extremely high. There are very few treasury stocks, and the share capital has not changed much in recent years.

Currently, the cash ratio is 0.28 million, the current ratio is 5.6, and the moving ratio is 1.7, all of which are relatively healthy.

Net cash flow operating over the past 5 years has been slightly lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 17, the price-earnings ratio is TTM 18.9, and the dividend ratio is 0.6%. Taking into account the recent sharp decline in revenue and profit growth, as well as the rapid increase in gross margin after the main business increased branded spirits, it is possible to choose carefully (⭐️)