INGREDION INC (INGR) Stock Fundamental Analysis
NYSE:INGR - New York Stock Exchange, Inc. - US4571871023 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to INGR. INGR was compared to 91 industry peers in the Food Products industry. INGR gets an excellent profitability rating and is at the same time showing great financial health properties. INGR has a bad growth rate and is valued cheaply. With these ratings, INGR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
INGR had positive earnings in the past year.
INGR had a positive operating cash flow in the past year.
In the past 5 years INGR has always been profitable.
In the past 5 years INGR always reported a positive cash flow from operatings.
1.2 Ratios
INGR has a better Return On Assets (8.69%) than 88.37% of its industry peers.
INGR's Return On Equity of 17.01% is amongst the best of the industry. INGR outperforms 83.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.03%, INGR belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INGR is in line with the industry average of 8.96%.
The 3 year average ROIC (10.82%) for INGR is below the current ROIC(12.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 17.01% | ||
| ROIC | 12.03% |
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
The Profit Margin of INGR (8.71%) is better than 82.56% of its industry peers.
INGR's Profit Margin has improved in the last couple of years.
INGR's Operating Margin of 13.59% is amongst the best of the industry. INGR outperforms 81.40% of its industry peers.
In the last couple of years the Operating Margin of INGR has grown nicely.
With a Gross Margin value of 24.11%, INGR perfoms like the industry average, outperforming 56.98% of the companies in the same industry.
INGR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.59% | ||
| PM (TTM) | 8.71% | ||
| GM | 24.11% |
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
INGR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for INGR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.11 indicates that INGR is not in any danger for bankruptcy at the moment.
INGR has a Altman-Z score of 4.11. This is amongst the best in the industry. INGR outperforms 81.40% of its industry peers.
The Debt to FCF ratio of INGR is 1.61, which is an excellent value as it means it would take INGR, only 1.61 years of fcf income to pay off all of its debts.
INGR has a better Debt to FCF ratio (1.61) than 80.23% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that INGR is not too dependend on debt financing.
INGR has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.49
WACC8.07%
2.3 Liquidity
INGR has a Current Ratio of 2.62. This indicates that INGR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of INGR (2.62) is better than 74.42% of its industry peers.
A Quick Ratio of 1.69 indicates that INGR should not have too much problems paying its short term obligations.
INGR has a better Quick ratio (1.69) than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
INGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.85%, which is quite good.
Measured over the past years, INGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.90% on average per year.
Looking at the last year, INGR shows a decrease in Revenue. The Revenue has decreased by -8.95% in the last year.
Measured over the past years, INGR shows a small growth in Revenue. The Revenue has been growing by 3.66% on average per year.
EPS 1Y (TTM)12.85%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%33.5%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-6.3%
3.2 Future
The Earnings Per Share is expected to grow by 1.06% on average over the next years.
The Revenue is expected to grow by 1.24% on average over the next years.
EPS Next Y7.57%
EPS Next 2Y5.46%
EPS Next 3Y1.45%
EPS Next 5Y1.06%
Revenue Next Year1.06%
Revenue Next 2Y2%
Revenue Next 3Y2.13%
Revenue Next 5Y1.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.00 indicates a correct valuation of INGR.
79.07% of the companies in the same industry are more expensive than INGR, based on the Price/Earnings ratio.
INGR is valuated cheaply when we compare the Price/Earnings ratio to 28.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.16, the valuation of INGR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, INGR is valued cheaper than 82.56% of the companies in the same industry.
INGR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INGR indicates a somewhat cheap valuation: INGR is cheaper than 79.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INGR is valued cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of INGR may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)1.21
EPS Next 2Y5.46%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
INGR has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
INGR's Dividend Yield is a higher than the industry average which is at 3.97.
INGR's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of INGR has a limited annual growth rate of 4.40%.
INGR has been paying a dividend for at least 10 years, so it has a reliable track record.
INGR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.4%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
INGR pays out 32.46% of its income as dividend. This is a sustainable payout ratio.
The dividend of INGR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.46%
EPS Next 2Y5.46%
EPS Next 3Y1.45%
INGREDION INC
NYSE:INGR (2/10/2025, 8:06:46 PM)
After market: 126.5 -1.06 (-0.83%)127.56
-0.34 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-8.46%
Ins Owners0.72%
Ins Owner Change0.12%
Market Cap8.31B
Analysts80
Price Target167.69 (31.46%)
Short Float %1.92%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend3.24
Dividend Growth(5Y)4.4%
DP32.46%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.1%
Min EPS beat(2)0.51%
Max EPS beat(2)15.7%
EPS beat(4)3
Avg EPS beat(4)7.07%
Min EPS beat(4)-0.94%
Max EPS beat(4)15.7%
EPS beat(8)6
Avg EPS beat(8)10.4%
EPS beat(12)10
Avg EPS beat(12)9.38%
EPS beat(16)13
Avg EPS beat(16)9.18%
Revenue beat(2)0
Avg Revenue beat(2)-5.8%
Min Revenue beat(2)-5.81%
Max Revenue beat(2)-5.79%
Revenue beat(4)0
Avg Revenue beat(4)-6.72%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)-5.79%
Revenue beat(8)0
Avg Revenue beat(8)-6.68%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)4
Avg Revenue beat(16)-3.23%
PT rev (1m)-0.48%
PT rev (3m)13.77%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)6.05%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-2.65%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.12 | ||
| P/FCF | 7.32 | ||
| P/OCF | 5.79 | ||
| P/B | 2.19 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)10.63
EY8.33%
EPS(NY)11.43
Fwd EY8.96%
FCF(TTM)17.42
FCFY13.66%
OCF(TTM)22.04
OCFY17.28%
SpS114.03
BVpS58.38
TBVpS38.98
PEG (NY)1.59
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 17.01% | ||
| ROCE | 16.39% | ||
| ROIC | 12.03% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 18.97% | ||
| OM | 13.59% | ||
| PM (TTM) | 8.71% | ||
| GM | 24.11% | ||
| FCFM | 15.28% |
ROA(3y)7.87%
ROA(5y)6.07%
ROE(3y)16.94%
ROE(5y)13.28%
ROIC(3y)10.82%
ROIC(5y)9.98%
ROICexc(3y)11.98%
ROICexc(5y)11%
ROICexgc(3y)15.53%
ROICexgc(5y)14.43%
ROCE(3y)15.46%
ROCE(5y)14.31%
ROICexcg growth 3Y14.86%
ROICexcg growth 5Y5.37%
ROICexc growth 3Y15.04%
ROICexc growth 5Y5.66%
OM growth 3Y10.37%
OM growth 5Y3.2%
PM growth 3Y72.48%
PM growth 5Y5.54%
GM growth 3Y7.68%
GM growth 5Y2.67%
F-Score7
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 140.65% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.32% | ||
| Profit Quality | 175.43% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.11 |
F-Score7
WACC8.07%
ROIC/WACC1.49
Cap/Depr(3y)141.49%
Cap/Depr(5y)144.09%
Cap/Sales(3y)3.9%
Cap/Sales(5y)4.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.85%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%33.5%
EPS Next Y7.57%
EPS Next 2Y5.46%
EPS Next 3Y1.45%
EPS Next 5Y1.06%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-6.3%
Revenue Next Year1.06%
Revenue Next 2Y2%
Revenue Next 3Y2.13%
Revenue Next 5Y1.24%
EBIT growth 1Y4.34%
EBIT growth 3Y13.16%
EBIT growth 5Y6.97%
EBIT Next Year26.8%
EBIT Next 3Y9.16%
EBIT Next 5Y4.99%
FCF growth 1Y53.17%
FCF growth 3Y131.07%
FCF growth 5Y26.38%
OCF growth 1Y35.86%
OCF growth 3Y54.15%
OCF growth 5Y16.13%