The Middleby Corporation Fundamental Analysis (NASDAQ: MIDD)
The Middleby Corporation Fundamental Analysis (NASDAQ: MIDD)
The Middleby Corporation (NASDAQ: MIDD) shows weak financial fundamentals with a PE ratio of 159.95, profit margin of 1.24%, and ROE of 2.18%. The company generates $3.3B in annual revenue with weak year-over-year growth of -17.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MIDD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMIDD demonstrates superior asset utilization.
Valuation Score
ModerateMIDD shows balanced valuation metrics.
Growth Score
WeakMIDD faces weak or negative growth trends.
Financial Health Score
ModerateMIDD shows balanced financial health with some risks.
Profitability Score
ModerateMIDD maintains healthy but balanced margins.
Key Financial Metrics
Is MIDD Expensive or Cheap?
P/E Ratio
MIDD trades at 159.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MIDD's PEG of -4.78 indicates potential undervaluation.
Price to Book
The market values The Middleby Corporation at 4605.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.97 times EBITDA. This is generally considered low.
How Well Does MIDD Make Money?
Net Profit Margin
For every $100 in sales, The Middleby Corporation keeps $1.24 as profit after all expenses.
Operating Margin
Core operations generate 16.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.18 in profit for every $100 of shareholder equity.
ROA
The Middleby Corporation generates $10.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Middleby Corporation produces operating cash flow of $356.82M, showing steady but balanced cash generation.
Free Cash Flow
The Middleby Corporation generates strong free cash flow of $342.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.57 in free cash annually.
FCF Yield
MIDD converts 5.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
159.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
4605.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.000
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
10.19
vs 25 benchmark
ROCE
Return on capital employed
161.11
vs 25 benchmark
How MIDD Stacks Against Its Sector Peers
| Metric | MIDD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 159.95 | 27.44 | Worse (Expensive) |
| ROE | 2.18% | 1185.00% | Weak |
| Net Margin | 1.24% | -2.00% (disorted) | Weak |
| Debt/Equity | 1.31 | 0.85 | Weak (High Leverage) |
| Current Ratio | 2.00 | 22.12 | Strong Liquidity |
| ROA | 1019.25% | -1355419.00% (disorted) | Strong |
MIDD outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Middleby Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-242.90%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
28.08%
Industry Style: Cyclical, Value, Infrastructure
High Growth