MGP IngredientsFRA:M1I 61 Operating Margin % is 5.94% as of Mar. 2026, which is 59% below its 10-year median of 14.64. GuruFocus rates FRA:M1I with a GF Score™ of 61/100 and a GF Value™ of €29.35. The stock has 7 warning signs investors should review. Among 210 Beverages - Alcoholic companies, MGP Ingredients ranks better than 70.95% on this metric.
MGP Ingredients Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for MGP Ingredients's Operating Margin % or its related term are showing as below:
FRA:M1I'
s Operating Margin % Range Over the Past 10 Years
Min: 12.35 Med: 14.64 Max: 23.37
Current: 14.56
FRA:M1I's Operating Margin % is ranked better than 70.95% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 7.915
vs FRA:M1I: 14.56
MGP Ingredients's 5-Year Average Operating Margin % Growth Rate was 4.60% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
MGP Ingredients Operating Margin % Related Terms
MGP Ingredients Operating Margin % Historical Data
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The historical data trend for MGP Ingredients's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:M1I vs SNDL, AGCC, CWGL: Operating Margin % Comparison
For the Beverages - Wineries & Distilleries subindustry, MGP Ingredients's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MGP Ingredients Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, MGP Ingredients's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MGP Ingredients's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
MGP Ingredients's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MGP Ingredients (FRA:M1I) has a Operating Margin % of 5.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MGP Ingredients and its competitors. This is 59% below median its historical median of 14.64. Over the past decade, MGP Ingredients' Operating Margin % has ranged from 12.35 to 23.37. According to the industry distribution chart, MGP Ingredients ranks #61 out of 210 companies in the Beverages - Alcoholic industry, placing it in the top 29%.
Is MGP Ingredients' Operating Margin % too high?
MGP Ingredients' current Operating Margin % of 5.94% is 59% below median its 10-year median of 14.64. Over the past 10 years, this metric has ranged from a low of 12.35 to a high of 23.37. The Beverages - Alcoholic industry median Operating Margin % is 7.92. MGP Ingredients' value of 5.94% is 25% below this industry median. Based on the distribution chart, MGP Ingredients ranks #61 out of 210 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, MGP Ingredients has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does MGP Ingredients' Operating Margin % compare to SNDL and AGCC?
According to the Beverages - Alcoholic industry distribution chart, MGP Ingredients ranks #61 out of 210 companies for Operating Margin %. This puts MGP Ingredients in the upper half of its industry. The industry median Operating Margin % is 7.92. MGP Ingredients' value of 5.94% is 25% below this benchmark. Historically, MGP Ingredients' own Operating Margin % has ranged from 12.35 to 23.37 over the past decade. While the company's 10-year median is 14.64 vs. the industry median of 7.92, MGP Ingredients has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.92, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGP Ingredients's current Operating Margin % of 5.94% is 25% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on MGP Ingredients and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGP Ingredients's current Operating Margin % is 5.94%, which is 59% below median its own 10-year median of 14.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGP Ingredients stock overvalued right now?
MGP Ingredients (FRA:M1I) has a current Operating Margin % of 5.94%. The stock's GF Value™ is €29.35, compared to a current price of €14.50 — trading 50.6% below its estimated fair value. The current Operating Margin % is 5.94%, which is 59% below median its 10-year median of 14.64 and 25% below the Beverages - Alcoholic industry median of 7.92. MGP Ingredients' overall GF Score™ is 61/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For MGP Ingredients (FRA:M1I), the current Operating Margin % is 5.94% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MGP Ingredients (FRA:M1I) Overvalued in 2026?
Based on GuruFocus' analysis, MGP Ingredients stock appears to be undervalued.
The current stock price of €14.50 is trading 50.6% below its estimated GF Value™ of €29.35.
Key valuation signals for FRA:M1I:
Operating Margin %: 5.94% (59% below median its 10-year median of 14.64)
GF Value™: €29.35 vs. price of €14.50 (50.6% below fair value)
Industry Position: 25% below the Beverages - Alcoholic median (#61 of 210)
No single metric tells the full story. See the FRA:M1I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGP Ingredients Inc is a producer and supplier of distilled spirits, specialty wheat protein, and starch food ingredients based in the United States. It operates in three reportable segments: Distillery Solutions, Branded Spirits Segment, and Ingredient Solutions. Maximum revenue is generated from the Branded Spirits segment, which consists of a portfolio of brands that it produces through its distilleries and bottling facilities and sells to distributors or to state governments that directly control the sale of alcohol. MGP's branded spirits include various brands across numerous categories and price tiers, such as Penelope Bourbon, Yellowstone Bourbon, Minor Case Straight Rye Whiskey, Brady's Irish Cream, Exotico Tequila, Arrow Cordials, Canada House Canadian Whisky, Lady Bligh Rum, etc.
61GF Score
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