The Middleby (MIDD) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: N/A
• Average Volume (3M): 854.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• 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: 1,052,965
• 30 Day Avg. Volume: 854,081
• 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: 1.16
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: 218.18
• 1Y Price Target: $163.60
• Price Target Upside: 10.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 9.07
• Revenue Forecast (FY): $3.87B

• Rating: 61 Neutral
• Price Target: $135.00 ▼(-8.56% Downside)

The Middleby Corporation's overall stock score reflects a mix of strengths and challenges. Strong cash flow and strategic corporate events are positive factors, while profitability issues and valuation concerns weigh on the score. The technical analysis suggests mixed signals, with short-term bullish momentum but potential bearish pressure.

Positive Factors

Strategic Shift

The sale and spin-off of non-core segments allow Middleby to focus on its core commercial foodservice business, enhancing growth potential and operational efficiency.

Cash Generation

Robust cash flow indicates efficient operations and provides financial flexibility for strategic investments and debt management, supporting long-term stability.

Innovation and Expansion

New facilities enhance manufacturing capabilities and customer collaboration, fostering innovation and supporting long-term growth in key markets.

Negative Factors

Profitability Challenges

Ongoing profitability issues could strain financial resources and limit reinvestment opportunities, affecting long-term competitiveness and growth.

Impairment Charges

Significant impairment charges reflect underlying business challenges and can impact financial health, reducing shareholder value and future investment capacity.

Tariff-Related Headwinds

Tariff-related revenue impacts highlight vulnerability to external economic factors, potentially affecting market competitiveness and profitability in key segments.

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 kitchen and food processing equipment, which includes both standard and custom-built products for various foodservice and industrial applications. The company has a diversified revenue model that includes direct sales, distribution agreements, and service contracts. Key revenue streams are driven by the sale of cooking and food preparation equipment, which is bolstered by ongoing demand from the hospitality and food processing industries. Additionally, Middleby benefits from after-sales service and maintenance contracts, providing ongoing revenue from existing customers. Strategic partnerships with major foodservice chains and manufacturers further enhance its market presence and contribute to earnings through bulk orders and exclusive agreements.

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 2021	Dec 2020
Income Statement
Total Revenue	3.88B	3.88B	4.04B	4.03B	3.25B	2.51B
Gross Profit	1.47B	1.47B	1.53B	1.45B	1.19B	882.05M
EBITDA	39.60M	796.72M	797.35M	791.45M	801.90M	439.25M
Net Income	-202.37M	428.43M	400.88M	436.57M	488.49M	207.29M
Balance Sheet
Total Assets	6.35B	7.28B	6.91B	6.87B	6.38B	5.20B
Cash, Cash Equivalents and Short-Term Investments	175.13M	689.53M	247.50M	162.00M	180.36M	268.10M
Total Debt	2.10B	2.52B	2.54B	2.83B	2.44B	1.75B
Total Liabilities	3.42B	3.64B	3.66B	4.08B	3.89B	3.23B
Stockholders Equity	2.94B	3.64B	3.25B	2.80B	2.49B	1.98B
Cash Flow
Free Cash Flow	591.15M	637.51M	541.81M	263.03M	371.85M	482.88M
Operating Cash Flow	679.21M	686.82M	628.79M	332.55M	423.40M	524.78M
Investing Cash Flow	-225.09M	-158.53M	-155.74M	-348.32M	-1.01B	-106.76M
Financing Cash Flow	-894.02M	-73.77M	-390.94M	7.63M	502.79M	-252.47M

The Middleby Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 147.64 is above the 20-day moving average (MA) of 131.04, above the 50-day MA of 127.83, and above the 200-day MA of 137.98, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 73.89 is Negative, neither overbought nor oversold. The STOCH value of 85.28 is Negative, 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
FLS	79 Outperform	$9.03B	20.67	20.97%	1.17%	3.19%	69.89%
SPXC	77 Outperform	$10.13B	43.34	12.76%	―	12.60%	24.02%
MIR	66 Neutral	$5.98B	199.92	1.58%	―	7.81%	―
GTES	65 Neutral	$5.58B	23.77	7.33%	―	-0.75%	9.22%
NPO	64 Neutral	$4.36B	50.88	5.80%	0.60%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MIDD	61 Neutral	$7.44B	-33.53	-6.20%	―	0.27%	-159.24%

The Middleby Corporate Events

The Middleby Sells Stake in Residential Kitchen Business

On December 4, 2025, The Middleby Corporation announced it will sell a 51% stake in its Residential Kitchen business to 26North Partners LP, valuing the business at $885 million. This transaction, along with the planned spin-off of its Food Processing business, marks a strategic shift for Middleby towards becoming a pure-play leader in commercial foodservice equipment. The deal will provide Middleby with $540 million in cash proceeds, which will be used to repurchase shares and optimize its capital structure, while retaining a 49% stake in the new joint venture. This move is expected to enhance Middleby’s growth potential in the commercial foodservice sector, focusing on automation, innovation, and new market opportunities.