INGREDION INC (INGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INGR - US4571871023 - Common Stock
117.63 USD
+1.18 (+1.01%)
Overall INGR gets a fundamental rating of 7 out of 10. We evaluated INGR against 87 industry peers in the Food Products industry. INGR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. INGR is cheap, but on the other hand it scores bad on growth. These ratings could make INGR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year INGR was profitable.
- In the past year INGR had a positive cash flow from operations.
- INGR had positive earnings in each of the past 5 years.
- INGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- INGR has a Return On Assets of 8.41%. This is amongst the best in the industry. INGR outperforms 90.80% of its industry peers.
- Looking at the Return On Equity, with a value of 15.55%, INGR belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
- The Return On Invested Capital of INGR (11.85%) is better than 90.80% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for INGR is significantly below the industry average of 27.79%.
- The 3 year average ROIC (10.82%) for INGR is below the current ROIC(11.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 15.55% | ||
| ROIC | 11.85% |
ROA(3y)7.87%
ROA(5y)6.07%
ROE(3y)16.94%
ROE(5y)13.28%
ROIC(3y)10.82%
ROIC(5y)9.98%
1.3 Margins
- With an excellent Profit Margin value of 9.07%, INGR belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of INGR has grown nicely.
- INGR's Operating Margin of 14.60% is amongst the best of the industry. INGR outperforms 89.66% of its industry peers.
- In the last couple of years the Operating Margin of INGR has grown nicely.
- INGR has a Gross Margin of 25.43%. This is in the better half of the industry: INGR outperforms 62.07% of its industry peers.
- In the last couple of years the Gross Margin of INGR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.6% | ||
| PM (TTM) | 9.07% | ||
| GM | 25.43% |
OM growth 3Y10.37%
OM growth 5Y3.2%
PM growth 3Y72.48%
PM growth 5Y5.54%
GM growth 3Y7.68%
GM growth 5Y2.67%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INGR is still creating some value.
- The number of shares outstanding for INGR has been reduced compared to 1 year ago.
- Compared to 5 years ago, INGR has less shares outstanding
- INGR has a better debt/assets ratio than last year.
2.2 Solvency
- INGR has an Altman-Z score of 3.93. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
- INGR has a better Altman-Z score (3.93) than 80.46% of its industry peers.
- The Debt to FCF ratio of INGR is 3.29, which is a good value as it means it would take INGR, 3.29 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.29, INGR belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
- INGR has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of INGR (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.61
WACC7.36%
2.3 Liquidity
- INGR has a Current Ratio of 2.75. This indicates that INGR is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.75, INGR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- INGR has a Quick Ratio of 1.79. This is a normal value and indicates that INGR is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.79, INGR belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.54% over the past year.
- The Earnings Per Share has been growing by 9.90% on average over the past years. This is quite good.
- Looking at the last year, INGR shows a decrease in Revenue. The Revenue has decreased by -3.83% in the last year.
- INGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.66% yearly.
EPS 1Y (TTM)12.54%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%-9.84%
Revenue 1Y (TTM)-3.83%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-2.89%
3.2 Future
- Based on estimates for the next years, INGR will show a small growth in Earnings Per Share. The EPS will grow by 1.29% on average per year.
- Based on estimates for the next years, INGR will show a decrease in Revenue. The Revenue will decrease by -0.37% on average per year.
EPS Next Y7.37%
EPS Next 2Y4.53%
EPS Next 3Y4.4%
EPS Next 5Y1.29%
Revenue Next Year-3.28%
Revenue Next 2Y-1.12%
Revenue Next 3Y-0.25%
Revenue Next 5Y-0.37%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- INGR is valuated reasonably with a Price/Earnings ratio of 10.48.
- Based on the Price/Earnings ratio, INGR is valued cheaply inside the industry as 85.06% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of INGR to the average of the S&P500 Index (28.60), we can say INGR is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.13, the valuation of INGR can be described as very reasonable.
- 90.80% of the companies in the same industry are more expensive than INGR, based on the Price/Forward Earnings ratio.
- INGR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
- INGR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INGR is cheaper than 83.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, INGR is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- INGR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- INGR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.06
EPS Next 2Y4.53%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.83%, INGR has a reasonable but not impressive dividend return.
- INGR's Dividend Yield is a higher than the industry average which is at 2.29.
- INGR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
- The dividend of INGR has a limited annual growth rate of 4.40%.
- INGR has paid a dividend for at least 10 years, which is a reliable track record.
- INGR has decreased its dividend recently.
Dividend Growth(5Y)4.4%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 32.02% of the earnings are spent on dividend by INGR. This is a low number and sustainable payout ratio.
- The dividend of INGR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.02%
EPS Next 2Y4.53%
EPS Next 3Y4.4%
INGREDION INC / INGR FAQ
Can you provide the ChartMill fundamental rating for INGREDION INC?
ChartMill assigns a fundamental rating of 7 / 10 to INGR.
Can you provide the valuation status for INGREDION INC?
ChartMill assigns a valuation rating of 7 / 10 to INGREDION INC (INGR). This can be considered as Undervalued.
Can you provide the profitability details for INGREDION INC?
INGREDION INC (INGR) has a profitability rating of 9 / 10.
What is the expected EPS growth for INGREDION INC (INGR) stock?
The Earnings per Share (EPS) of INGREDION INC (INGR) is expected to grow by 7.37% in the next year.
How sustainable is the dividend of INGREDION INC (INGR) stock?
The dividend rating of INGREDION INC (INGR) is 5 / 10 and the dividend payout ratio is 32.02%.