INGREDION INC (INGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INGR - US4571871023 - Common Stock
116.82 USD
+0.9 (+0.78%)
116.82 USD
0 (0%)
INGR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 87 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 is cheap, but on the other hand it scores bad on growth. 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.
- In the past 5 years INGR always reported a positive cash flow from operatings.
1.2 Ratios
- INGR has a better Return On Assets (8.41%) than 90.80% of its industry peers.
- INGR has a better Return On Equity (15.55%) than 88.51% of its industry peers.
- INGR's Return On Invested Capital of 11.85% is amongst the best of the industry. INGR outperforms 90.80% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for INGR is significantly below the industry average of 27.79%.
- The last Return On Invested Capital (11.85%) 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 | 15.55% | ||
| 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
- INGR's Profit Margin of 9.07% is amongst the best of the industry. INGR outperforms 86.21% of its industry peers.
- INGR's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 14.60%, INGR belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
- 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.
- INGR's Gross Margin has improved in the last couple of years.
| 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
- 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.
- The debt/assets ratio for INGR has been reduced compared to a year ago.
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 81.61% of its industry peers.
- INGR has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as INGR would need 3.29 years to pay back of all of its debts.
- INGR has a Debt to FCF ratio of 3.29. This is amongst the best in the industry. INGR outperforms 81.61% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that INGR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.42, INGR is in line with its industry, outperforming 50.57% of the companies in the same 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
- A Current Ratio of 2.75 indicates that INGR has no problem at all paying its short term obligations.
- INGR's Current ratio of 2.75 is fine compared to the rest of the industry. INGR outperforms 79.31% of its industry peers.
- A Quick Ratio of 1.79 indicates that INGR should not have too much problems paying its short term obligations.
- INGR has a Quick ratio of 1.79. This is amongst the best in the industry. INGR outperforms 82.76% of its industry peers.
| 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.
- 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 -3.83% in the past 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)12.54%
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
- The Earnings Per Share is expected to grow by 1.29% on average over the next years.
- The Revenue is expected to decrease by -0.37% on average over the next years.
EPS Next Y7.34%
EPS Next 2Y4.57%
EPS Next 3Y4.47%
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 10.41, which indicates a very decent valuation of INGR.
- INGR's Price/Earnings ratio is rather cheap when compared to the industry. INGR is cheaper than 83.91% of the companies in the same industry.
- INGR is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.05, the valuation of INGR can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INGR indicates a rather cheap valuation: INGR is cheaper than 90.80% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of INGR to the average of the S&P500 Index (24.26), we can say INGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
- 83.91% of the companies in the same industry are more expensive than INGR, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of INGR indicates a somewhat cheap valuation: INGR is cheaper than 74.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.59 | ||
| EV/EBITDA | 6.39 |
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)1.05
EPS Next 2Y4.57%
EPS Next 3Y4.47%
5. Dividend
5.1 Amount
- INGR has a Yearly Dividend Yield of 2.83%.
- 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 1.81.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of INGR decreased 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 2Y4.57%
EPS Next 3Y4.47%
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 7.34% 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%.