The Middleby (MIDD) AI Stock Analysis

• Market Cap: $7.87B
• Dividend Yield: N/A
• Average Volume (3M): 831.72K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.12
• Revenue Growth: -2.56%
• EPS Growth: 11.51%
• Country: US
• Employees: 10,616
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 2.08
• Shares Outstanding: 53,481,520
• 10 Day Avg. Volume: 573,640
• 30 Day Avg. Volume: 831,724
• PEG Ratio: -2.69
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.55
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 2.89
• 1Y Price Target: $159.60
• Price Target Upside: 7.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $164.00 ▲(10.19%Upside)

Middleby's overall stock score reflects a strong financial foundation and strategic initiatives aimed at enhancing shareholder value. While technical indicators and valuation are moderately positive, challenges such as stagnant revenue growth and potential tariff impacts are notable risks.

Positive Factors

Board Appointments

Ed Garden of Garden Investments and Julie Bowerman were appointed to Middleby’s Board of Directors, which are seen as steps to reinvigorate investor interest.

Product Strategy

The company's new product strategy is providing management with incremental confidence in the company's three-year midsingle-digit organic growth outlook.

Share Repurchase

Middleby Corporation will accelerate its share repurchase program, expecting to deploy most of its free cash flow to share buybacks.

Negative Factors

Food Processing Sales

Food Processing sales came in ~10% lower than consensus, driven by customer-driven delivery delays.

Macroeconomic Uncertainty

Heightened macroeconomic uncertainty has seemingly pushed out previous expectations for organic growth.

Tariffs Impact

Outdoor grills remain under pressure as tariffs continue to impact the segment.

The Middleby Business Overview & Revenue Model

Company Description

The Middleby Corporation designs, manufactures, markets, distributes, and services a range of foodservice, food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; and soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment, fry dispensers, bottle filling and canning equipment, and IoT solutions. The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, formers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and food safety, food handling, freezing, and defrosting and packaging equipment for customers producing hot dog, dinner sausage, poultry, and lunchmeat, as well as muffin, cookie, and bread products. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, dishwashers, microwaves, cooktops, wine coolers, ice machines, and ventilation and outdoor equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois.

How the Company Makes Money

The Middleby Corporation generates revenue primarily through the sale of its wide range of kitchen and food processing equipment. In the Commercial Foodservice segment, Middleby offers a variety of products such as ovens, fryers, grills, and beverage dispensers, catering to restaurants, fast-food chains, and other foodservice providers. This segment is a significant revenue driver, supported by the company's focus on innovation and energy efficiency, which attracts businesses looking to improve operational efficiency and sustainability. In the Food Processing segment, Middleby provides equipment and systems for food production, including cooking, chilling, and packaging solutions, serving large food processors and manufacturers. The Residential Kitchen Equipment segment targets the high-end market with premium appliances like ranges, refrigerators, and dishwashers under brands such as Viking Range and AGA. The company's revenue is further bolstered by strategic acquisitions that expand its product portfolio and market reach, as well as by its extensive distribution network and strong industry relationships that enhance its market presence.

The Middleby Financial Statement Overview

Summary

The Middleby has demonstrated consistent profitability with strong gross profit margins and stable net profit margins. Operational efficiency is indicated by robust EBIT and EBITDA margins, although stagnant revenue growth is a concern. The company's cash flow management is strong, yet leverage needs careful management.

Income Statement

The Middleby has shown consistent profitability with strong gross profit margins and stable net profit margins in recent years. Despite a slight decrease in revenue, the EBIT and EBITDA margins remain robust, indicating operational efficiency. However, the revenue growth rate has been stagnant, which could be a concern for future expansion.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, reflecting balanced leverage. A stable return on equity demonstrates effective use of shareholders’ funds. However, the equity ratio indicates that liabilities still form a significant portion of the company’s financing, which could be risky during economic downturns.

Cash Flow

The Middleby exhibits strong cash flow management with a healthy operating cash flow to net income ratio and consistent free cash flow generation. The free cash flow growth rate shows positive trends, which supports future investment and debt repayment. Nevertheless, the slight fluctuation in free cash flow growth indicates potential volatility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.85B	3.88B	4.04B	4.03B	3.25B	2.51B
	Gross Profit
1.45B	1.47B	1.53B	1.45B	1.19B	882.05M
	EBIT
664.79M	656.19M	634.87M	639.60M	448.31M	324.43M
	EBITDA
802.49M	796.72M	797.35M	780.39M	776.67M	457.21M
	Net Income Common Stockholders
434.22M	428.43M	400.88M	436.57M	488.49M	207.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
144.92M	689.53M	247.50M	162.00M	180.36M	268.10M
	Total Assets
6.67B	7.28B	6.91B	6.87B	6.38B	5.20B
	Total Debt
2.74B	2.42B	2.54B	2.72B	2.41B	1.73B
	Net Debt
2.59B	1.73B	2.29B	2.56B	2.23B	1.46B
	Total Liabilities
4.17B	3.64B	3.66B	4.08B	3.89B	3.23B
	Stockholders Equity
2.50B	3.64B	3.25B	2.80B	2.49B	1.98B
Cash Flow		Free Cash Flow
617.83M	637.51M	541.81M	263.03M	371.85M	482.88M
	Operating Cash Flow
687.05M	686.82M	628.79M	332.55M	423.40M	524.78M
	Investing Cash Flow
-177.28M	-158.53M	-155.74M	-348.32M	-1.01B	-106.76M
	Financing Cash Flow
-102.30M	-73.77M	-390.94M	7.63M	502.79M	-252.47M

The Middleby Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 148.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MIDD, the sentiment is Positive. The current price of 148.83 is above the 20-day moving average (MA) of 148.32, above the 50-day MA of 140.45, and above the 200-day MA of 144.17, indicating a bullish trend. The MACD of 1.82 indicates Positive momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MIDD.

The Middleby Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	79 Outperform	$8.17B	28.01	17.61%	0.74%	3.89%	8.17%
SPXC	78 Outperform	$7.37B	36.99	15.24%	―	10.78%	30.05%
RRX	72 Outperform	$9.28B	39.84	3.69%	0.98%	-10.19%	―
CR	72 Outperform	$10.73B	36.17	18.82%	0.47%	6.65%	39.13%
MIDD	71 Outperform	$7.87B	18.74	12.33%	―	-2.56%	11.51%
GNRC	67 Neutral	$7.56B	22.37	14.29%	―	8.07%	58.67%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%

The Middleby Corporate Events

The Middleby Holds Annual Stockholders Meeting

On May 14, 2025, The Middleby Corporation held its Annual Meeting of Stockholders where several key proposals were voted on. All ten nominees for the Board of Directors were elected to serve until the 2026 meeting. Additionally, the advisory vote on executive compensation was approved, and Ernst & Young LLP was ratified as the independent public accountants for the fiscal year ending January 3, 2026. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (MIDD) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on The Middleby stock, see the MIDD Stock Forecast page.

Middleby Expands Share Buyback Program by 7.5 Million

On May 5, 2025, The Middleby Corporation’s Board of Directors authorized an increase in its share repurchase program by 7.5 million shares, bringing the total available for buyback to 11.4 million shares, or 21% of the company’s equity. This strategic move aims to return the majority of the company’s free cash flow to shareholders, following a February 2025 announcement to separate its Food Processing business. Despite a slight decrease in net sales and adjusted EBITDA in the first quarter of 2025, Middleby remains confident in its long-term outlook, planning to offset potential tariff-related cost increases through operational initiatives and pricing actions.