The Middleby (MIDD) AI Stock Analysis

• Market Cap: $6.77B
• Dividend Yield: N/A
• Average Volume (3M): 752.03K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.98
• Revenue Growth: -1.70%
• EPS Growth: 10.24%
• Country: US
• Employees: 10,616
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.35
• Shares Outstanding: 50,682,384
• 10 Day Avg. Volume: 688,082
• 30 Day Avg. Volume: 752,035
• 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: 1.42
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 6.57
• Enterprise Value/Ebitda: 12.38
• 1Y Price Target: $156.71
• Price Target Upside: 16.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $157.00 ▲(17.19% Upside)

The Middleby Corporation's stock score is driven by strong financial performance and strategic innovations. However, stagnant revenue growth, tariff impacts, and technical resistance are key concerns.

Positive Factors

Innovation and Product Development

Middleby's focus on innovation strengthens its competitive edge, allowing it to adapt to changing market demands and maintain leadership in the industry.

Growth in New Market Segments

Expanding into new market segments like ice and beverage products offers Middleby significant growth potential, diversifying its revenue streams and reducing dependency on existing markets.

Strong Cash Flow Management

Effective cash flow management ensures Middleby can invest in growth opportunities and manage debt, supporting long-term financial stability and operational flexibility.

Negative Factors

Impact of Tariffs

Tariff-related costs strain profitability and competitiveness, particularly in the residential segment, potentially hindering revenue growth and market expansion.

Challenges with Large QSR Customers

Pressure from large QSR customers can lead to reduced order volumes and pricing pressures, impacting Middleby's revenue and profitability in the long term.

Stagnant Revenue Growth

Stagnant revenue growth limits Middleby's ability to scale operations and invest in new opportunities, potentially affecting its competitive position and market share.

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

The Middleby demonstrates strong operational efficiency and stable profitability with robust cash flow management. However, stagnant revenue growth and significant liabilities pose potential risks.

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	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84B	3.88B	4.04B	4.03B	3.25B	2.51B
Gross Profit	1.46B	1.47B	1.53B	1.41B	1.19B	882.05M
EBITDA	775.40M	796.72M	797.35M	780.39M	776.67M	439.25M
Net Income	424.78M	428.43M	400.88M	436.57M	488.49M	207.29M
Balance Sheet
Total Assets	7.34B	7.28B	6.91B	6.87B	6.38B	5.20B
Cash, Cash Equivalents and Short-Term Investments	511.50M	689.53M	247.50M	162.00M	180.36M	268.10M
Total Debt	2.38B	2.52B	2.54B	2.83B	2.51B	1.83B
Total Liabilities	3.71B	3.64B	3.66B	4.08B	3.89B	3.23B
Stockholders Equity	3.62B	3.64B	3.25B	2.80B	2.49B	1.98B
Cash Flow
Free Cash Flow	580.34M	637.51M	541.81M	263.03M	371.85M	482.88M
Operating Cash Flow	659.54M	686.82M	628.79M	332.55M	423.40M	524.78M
Investing Cash Flow	-187.47M	-158.53M	-155.74M	-348.32M	-1.01B	-106.76M
Financing Cash Flow	-434.55M	-73.77M	-390.94M	7.63M	502.79M	-252.47M

The Middleby Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.97
• 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 133.97 is below the 20-day moving average (MA) of 135.94, below the 50-day MA of 136.24, and below the 200-day MA of 144.69, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 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
SPXC	78 Outperform	$9.19B	41.55	13.74%	―	8.90%	29.18%
GTES	74 Outperform	$6.49B	32.41	6.20%	―	-2.67%	-17.55%
FLS	72 Outperform	$6.90B	24.10	13.12%	1.59%	3.15%	14.18%
MIDD	71 Outperform	$6.77B	16.90	12.06%	―	-1.70%	10.24%
NPO	71 Outperform	$4.82B	56.57	5.10%	0.54%	4.99%	169.24%
MIR	64 Neutral	$5.86B	567.57	0.66%	―	7.88%	―
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.