INGREDION INC (INGR) Stock Fundamental Analysis
NYSE:INGR - New York Stock Exchange, Inc. - US4571871023 - Common Stock - Currency: USD
Overall INGR gets a fundamental rating of 7 out of 10. We evaluated INGR against 91 industry peers in the Food Products industry. INGR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INGR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes INGR very considerable 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.
In the past 5 years INGR has always been profitable.
INGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of INGR (8.41%) is better than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 15.79%, INGR belongs to the top of the industry, outperforming 82.42% of the companies in the same industry.
The Return On Invested Capital of INGR (12.58%) is better than 89.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INGR is significantly below the industry average of 28.11%.
The last Return On Invested Capital (12.58%) for INGR is above the 3 year average (10.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 15.79% | ||
| ROIC | 12.58% |
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
INGR's Profit Margin of 8.53% is amongst the best of the industry. INGR outperforms 81.32% of its industry peers.
INGR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.63%, INGR belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
INGR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.00%, INGR is in line with its industry, outperforming 59.34% of the companies in the same industry.
INGR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.63% | ||
| PM (TTM) | 8.53% | ||
| GM | 25% |
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.
The number of shares outstanding for INGR has been reduced compared to 5 years ago.
Compared to 1 year ago, INGR has an improved debt to assets ratio.
2.2 Solvency
INGR has an Altman-Z score of 4.31. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
INGR's Altman-Z score of 4.31 is amongst the best of the industry. INGR outperforms 83.52% of its industry peers.
INGR has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.83, INGR belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
INGR has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
INGR's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. INGR outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.64
WACC7.69%
2.3 Liquidity
INGR has a Current Ratio of 2.85. This indicates that INGR is financially healthy and has no problem in meeting its short term obligations.
INGR's Current ratio of 2.85 is fine compared to the rest of the industry. INGR outperforms 78.02% of its industry peers.
INGR has a Quick Ratio of 1.86. This is a normal value and indicates that INGR is financially healthy and should not expect problems in meeting its short term obligations.
INGR has a Quick ratio of 1.86. This is amongst the best in the industry. INGR outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
INGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.41%, which is quite impressive.
INGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.90% yearly.
The Revenue has decreased by -6.88% in the past year.
The Revenue has been growing slightly by 3.66% on average over the past years.
EPS 1Y (TTM)32.41%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%42.79%
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
3.2 Future
INGR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.34% yearly.
INGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.39% yearly.
EPS Next Y8.19%
EPS Next 2Y5.61%
EPS Next 3Y3.74%
EPS Next 5Y1.34%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.84%
Revenue Next 5Y1.39%
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
The Price/Earnings ratio is 11.87, which indicates a very decent valuation of INGR.
74.73% of the companies in the same industry are more expensive than INGR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. INGR is valued rather cheaply when compared to this.
INGR is valuated reasonably with a Price/Forward Earnings ratio of 11.53.
Based on the Price/Forward Earnings ratio, INGR is valued cheaply inside the industry as 81.32% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. INGR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INGR is valued a bit cheaper than 72.53% of the companies in the same industry.
INGR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INGR is cheaper than 87.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | 7.49 |
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)1.45
PEG (5Y)1.2
EPS Next 2Y5.61%
EPS Next 3Y3.74%
5. Dividend
5.1 Amount
INGR has a Yearly Dividend Yield of 2.33%.
Compared to an average industry Dividend Yield of 4.66, INGR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, INGR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 decreased its dividend recently.
Dividend Growth(5Y)4.4%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
33.60% of the earnings are spent on dividend by INGR. This is a low number and sustainable payout ratio.
INGR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.6%
EPS Next 2Y5.61%
EPS Next 3Y3.74%
136.73
+0.47 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change-0.01%
Ins Owners0.81%
Ins Owner Change3.22%
Market Cap8.79B
Analysts76.92
Price Target153.4 (12.19%)
Short Float %2.22%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend3.24
Dividend Growth(5Y)4.4%
DP33.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.57%
Min EPS beat(2)0.51%
Max EPS beat(2)20.64%
EPS beat(4)4
Avg EPS beat(4)12.46%
Min EPS beat(4)0.51%
Max EPS beat(4)20.64%
EPS beat(8)6
Avg EPS beat(8)8.42%
EPS beat(12)10
Avg EPS beat(12)10.62%
EPS beat(16)13
Avg EPS beat(16)9.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-5.81%
Max Revenue beat(2)-3.31%
Revenue beat(4)0
Avg Revenue beat(4)-5.47%
Min Revenue beat(4)-6.98%
Max Revenue beat(4)-3.31%
Revenue beat(8)0
Avg Revenue beat(8)-6.6%
Revenue beat(12)1
Avg Revenue beat(12)-4.93%
Revenue beat(16)3
Avg Revenue beat(16)-3.45%
PT rev (1m)1.81%
PT rev (3m)-3.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 11.53 | ||
| P/S | 1.19 | ||
| P/FCF | 9.01 | ||
| P/OCF | 6.74 | ||
| P/B | 2.21 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)11.52
EY8.43%
EPS(NY)11.86
Fwd EY8.67%
FCF(TTM)15.18
FCFY11.1%
OCF(TTM)20.28
OCFY14.83%
SpS114.46
BVpS61.84
TBVpS42.19
PEG (NY)1.45
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 15.79% | ||
| ROCE | 17.13% | ||
| ROIC | 12.58% | ||
| ROICexc | 14.52% | ||
| ROICexgc | 18.87% | ||
| OM | 14.63% | ||
| PM (TTM) | 8.53% | ||
| GM | 25% | ||
| FCFM | 13.26% |
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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 151.85% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.85% | ||
| Profit Quality | 155.41% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 4.31 |
F-Score7
WACC7.69%
ROIC/WACC1.64
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)32.41%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%42.79%
EPS Next Y8.19%
EPS Next 2Y5.61%
EPS Next 3Y3.74%
EPS Next 5Y1.34%
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.84%
Revenue Next 5Y1.39%
EBIT growth 1Y20.6%
EBIT growth 3Y13.16%
EBIT growth 5Y6.97%
EBIT Next Year26.13%
EBIT Next 3Y9.45%
EBIT Next 5Y4.5%
FCF growth 1Y807.25%
FCF growth 3Y131.07%
FCF growth 5Y26.38%
OCF growth 1Y752.29%
OCF growth 3Y54.15%
OCF growth 5Y16.13%