The Middleby (MIDD) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: N/A
• Average Volume (3M): 662.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 0.27%
• EPS Growth: -159.24%
• Country: US
• Employees: 10,616
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.37
• Shares Outstanding: 50,371,250
• 10 Day Avg. Volume: 1,080,234
• 30 Day Avg. Volume: 662,644
• PEG Ratio: 2.62
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 11.51
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: -52.12
• 1Y Price Target: $156.75
• Price Target Upside: 27.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 9.07
• Revenue Forecast (FY): $3.87B

• Rating: 64 Neutral
• Price Target: $142.00 ▲(15.04% Upside)

Middleby's overall stock score reflects strong earnings performance and reasonable valuation, but is weighed down by technical indicators showing bearish trends and financial challenges such as declining revenue growth and negative free cash flow growth. The earnings call provided some optimism with strategic investments, but significant challenges remain.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability.

Strategic Investments

Investments in new facilities and innovation centers enhance manufacturing capabilities and foster technological advancements, driving future growth.

Market Position

Positive growth in the Commercial Foodservice segment reflects strong market positioning and resilience in a competitive industry.

Negative Factors

Revenue Growth Challenges

A significant decline in revenue growth indicates potential difficulties in maintaining sales momentum, impacting long-term growth prospects.

Free Cash Flow Pressure

Negative free cash flow growth suggests potential liquidity challenges, which could constrain the company's ability to invest in future opportunities.

Impairment Charge

The significant impairment charge reflects underlying issues in the Residential Kitchen segment, potentially affecting future profitability and strategic options.

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

Middleby generates revenue primarily through the sale of its commercial cooking and food processing equipment. The company's key revenue streams include direct sales of equipment to restaurants, food manufacturers, and other commercial food service operations. Additionally, Middleby earns recurring revenue through the sale of parts, service contracts, and aftermarket support for its products. Strategic partnerships with leading foodservice brands and distributors further enhance its market presence and drive sales. The company also benefits from a strong focus on innovation, enabling it to introduce new products that meet changing consumer demands and maintain competitive advantage.

The Middleby Financial Statement Overview

Summary

Middleby shows strong operational margins and improved leverage, but faces challenges with declining revenue growth and negative free cash flow growth. Profitability remains consistent, but revenue and cash flow pressures need addressing for sustained financial health.

Income Statement

The Middleby shows a stable gross profit margin around 38% in TTM, with a net profit margin of 11%. However, the revenue growth rate has declined significantly by 35.5% in TTM, indicating potential challenges in maintaining sales momentum. EBIT and EBITDA margins remain healthy at 16.96% and 20.19% respectively, showcasing operational efficiency despite revenue contraction.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.66 in TTM, reflecting better leverage management compared to previous years. Return on equity is stable at 11.65%, indicating consistent profitability. The equity ratio stands at 49.39%, suggesting a balanced capital structure, though the high debt levels remain a concern.

Cash Flow

Operating cash flow to net income ratio is at 0.75 in TTM, showing adequate cash generation relative to earnings. However, free cash flow growth is negative at -6.07%, and the free cash flow to net income ratio is 0.88, indicating some pressure on cash reserves. The decline in free cash flow growth suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	2.87B	3.88B	4.04B	4.03B	2.96B	2.72B
Gross Profit	1.08B	1.47B	1.53B	1.45B	1.10B	1.00B
EBITDA	-165.76M	796.72M	797.35M	791.45M	648.34M	579.91M
Net Income	-314.67M	428.43M	400.88M	436.57M	352.24M	317.15M
Balance Sheet
Total Assets	6.35B	7.28B	6.91B	6.87B	5.00B	4.55B
Cash, Cash Equivalents and Short-Term Investments	175.13M	689.53M	247.50M	162.00M	94.50M	71.70M
Total Debt	2.10B	2.52B	2.54B	2.83B	1.87B	1.89B
Total Liabilities	3.42B	3.64B	3.66B	4.08B	3.06B	2.88B
Stockholders Equity	2.94B	3.64B	3.25B	2.80B	1.95B	1.67B
Cash Flow
Free Cash Flow	364.56M	637.51M	541.81M	263.03M	330.82M	327.48M
Operating Cash Flow	439.48M	686.82M	628.79M	332.55M	377.43M	368.91M
Investing Cash Flow	-110.56M	-158.53M	-155.74M	-348.32M	-327.67M	-1.24B
Financing Cash Flow	-866.04M	-73.77M	-390.94M	7.63M	-25.45M	856.13M

The Middleby Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 123.43 is below the 20-day moving average (MA) of 127.61, below the 50-day MA of 132.43, and below the 200-day MA of 143.08, indicating a bearish trend. The MACD of -2.99 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 50.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MIDD.

The Middleby Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLS	79 Outperform	$8.86B	20.28	20.97%	1.21%	3.19%	69.89%
SPXC	75 Outperform	$11.21B	47.24	12.76%	―	12.60%	24.02%
NPO	68 Neutral	$4.52B	52.72	5.80%	0.54%	6.44%	101.24%
MIR	68 Neutral	$6.89B	227.76	1.58%	―	7.81%	―
GTES	67 Neutral	$5.72B	24.44	7.33%	―	-0.75%	9.22%
MIDD	64 Neutral	$6.20B	―	-6.20%	―	0.27%	-159.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

The Middleby Corporate Events

The Middleby Extends Credit Agreement to 2028

On August 19, 2025, The Middleby Corporation and its subsidiary, Middleby Marshall Inc., along with other subsidiaries, entered into a Third Amendment to their existing Credit Agreement with Bank of America and other lenders. This amendment extends the maturity date of the Credit Agreement to April 28, 2028, and facilitates the company’s plan to separate its food processing business into a standalone public company, impacting its operational strategy and market positioning.

The most recent analyst rating on (MIDD) stock is a Buy with a $162.00 price target. To see the full list of analyst forecasts on The Middleby stock, see the MIDD Stock Forecast page.

Middleby Earnings Call: Mixed Sentiment and Strategic Growth

The Middleby Corporation’s recent earnings call presented a mixed sentiment, characterized by sequential improvements and robust EBITDA margins, alongside strategic innovations and share repurchases. However, the company faces significant challenges, including tariff impacts, pressures in the Commercial Foodservice segment, and increased interest expenses. Despite these hurdles, Middleby remains optimistic about its long-term growth prospects, driven by innovation and strategic initiatives.

Middleby Corporation Reports Q2 2025 Earnings

The Middleby Corporation is a global leader in the foodservice industry, specializing in the development and manufacturing of equipment for commercial foodservice, food processing, and residential kitchens. Known for its innovative solutions, Middleby operates state-of-the-art innovation kitchens and showrooms to showcase its advanced products.