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MGP IngredientsMGPI +3.27%57 Return-on-Tangible-Equity is 12.66% as of Jun. 2026, which is 42% below its 10-year median of 21.95. GuruFocus rates MGPI with a GF Score™ of 57/100 and a GF Value™ of $25.13 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 201 Beverages - Alcoholic companies, MGP Ingredients ranks worse than 97.01% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MGP Ingredients's annualized net income for the quarter that ended in Jun. 2026 was $48.0 Mil. MGP Ingredients's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $379.6 Mil. Therefore, MGP Ingredients's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 12.66%.
The historical rank and industry rank for MGP Ingredients's Return-on-Tangible-Equity or its related term are showing as below:
MGPI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -67.76 Med: 21.95 Max: 43.5
Current: -67.76
During the past 13 years, MGP Ingredients's highest Return-on-Tangible-Equity was 43.50%. The lowest was -67.76%. And the median was 21.95%.
MGPI's Return-on-Tangible-Equity is ranked worse than 97.01% of 201
companies
in the Beverages - Alcoholic industry
Industry Median: 8.47
vs MGPI: -67.76
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
MGP Ingredients Return-on-Tangible-Equity Related Terms
MGP Ingredients Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MGP Ingredients's Return-on-Tangible-Equity 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.
MGPI vs AGCC, SNDL, CWGL: Return-on-Tangible-Equity Comparison
For the Beverages - Wineries & Distilleries subindustry, MGP Ingredients's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, MGP Ingredients's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MGP Ingredients's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.66% mean?
MGP Ingredients (MGPI) has a Return-on-Tangible-Equity of 12.66% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MGP Ingredients and its competitors. This is 42% below median its historical median of 21.95. According to the industry distribution chart, MGP Ingredients ranks #195 out of 201 companies in the Beverages - Alcoholic industry, placing it in the top 97%.
Is MGP Ingredients' Return-on-Tangible-Equity too high?
MGP Ingredients' current Return-on-Tangible-Equity of 12.66% is 42% below median its 10-year median of 21.95. The Beverages - Alcoholic industry median Return-on-Tangible-Equity is 8.47. MGP Ingredients' value of 12.66% is 49.5% above this industry median. Based on the distribution chart, MGP Ingredients ranks #195 out of 201 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers. Overall, MGP Ingredients has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does MGP Ingredients' Return-on-Tangible-Equity compare to AGCC and SNDL?
According to the Beverages - Alcoholic industry distribution chart, MGP Ingredients ranks #195 out of 201 companies for Return-on-Tangible-Equity. This places MGP Ingredients in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.47. MGP Ingredients' value of 12.66% is 49.5% above this benchmark. While the company's 10-year median is 21.95 vs. the industry median of 8.47, MGP Ingredients has consistently been above 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 Return-on-Tangible-Equity for a Beverages - Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Alcoholic companies is 8.47, based on 201 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGP Ingredients's current Return-on-Tangible-Equity of 12.66% is 49.5% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MGP Ingredients and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Equity is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGP Ingredients's current Return-on-Tangible-Equity is 12.66%, which is 42% below median its own 10-year median of 21.95. 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?
Based on GuruFocus' analysis, MGP Ingredients (MGPI) is currently considered Possible Value Trap. The stock's GF Value™ is $25.13, compared to a current price of $17.68 — trading 29.6% below its estimated fair value. The current Return-on-Tangible-Equity is 12.66%, which is 42% below median its 10-year median of 21.95 and 49.5% above the Beverages - Alcoholic industry median of 8.47. MGP Ingredients' overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For MGP Ingredients (MGPI), the current Return-on-Tangible-Equity is 12.66% as of Jun. 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 (MGPI) Overvalued in 2026?
Based on GuruFocus' analysis, MGP Ingredients stock appears to be undervalued.
The current stock price of $17.68 is trading 29.6% below its estimated GF Value™ of $25.13.
GuruFocus considers MGP Ingredients to be Possible Value Trap.
Key valuation signals for MGPI:
Return-on-Tangible-Equity: 12.66% (42% below median its 10-year median of 21.95)
GF Value™: $25.13 vs. price of $17.68 (29.6% below fair value)
Industry Position: 49.5% above the Beverages - Alcoholic median (#195 of 201)
No single metric tells the full story. See the MGPI 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.
57GF Score
Get the complete analysis for MGPI
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