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%)
Taking everything into account, INGR scores 7 out of 10 in our fundamental rating. INGR was compared to 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. These ratings would make INGR suitable for value investing!
1. Profitability
1.1 Basic Checks
- INGR had positive earnings in the past year.
- In the past year INGR had a positive cash flow from operations.
- Each year in the past 5 years INGR has been profitable.
- In the past 5 years INGR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.41%, INGR belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
- INGR has a Return On Equity of 15.55%. This is amongst the best in the industry. INGR outperforms 88.51% of its industry peers.
- INGR has a Return On Invested Capital of 11.85%. This is amongst the best in 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 has a Profit Margin of 9.07%. This is amongst the best in the industry. INGR outperforms 86.21% of its industry peers.
- INGR's Profit Margin has improved in the last couple of years.
- INGR has a better Operating Margin (14.60%) than 89.66% of its industry peers.
- INGR's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 25.43%, INGR is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
- 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
- Compared to 1 year ago, INGR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.94 indicates that INGR is not in any danger for bankruptcy at the moment.
- INGR has a better Altman-Z score (3.94) than 80.46% 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.
- With a Debt to Equity ratio value of 0.42, INGR perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.94 |
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.
- Looking at the Current ratio, with a value of 2.75, INGR is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
- A Quick Ratio of 1.79 indicates that INGR should not have too much problems paying its short term obligations.
- INGR's Quick ratio of 1.79 is amongst the best of 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
- INGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.54%, 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.
- INGR shows a decrease in Revenue. In the last year, the revenue decreased by -3.83%.
- The Revenue has been growing slightly by 3.66% on average over the past years.
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.
- INGR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.37% yearly.
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.
- 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 10.41, which indicates a very decent valuation of INGR.
- 83.91% of the companies in the same industry are more expensive than INGR, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of INGR to the average of the S&P500 Index (27.21), we can say INGR is valued rather cheaply.
- INGR is valuated reasonably with a Price/Forward Earnings ratio of 10.06.
- Based on the Price/Forward Earnings ratio, INGR is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
- INGR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INGR indicates a rather cheap valuation: INGR is cheaper than 83.91% of the companies listed in the same industry.
- 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 | 6.44 |
4.3 Compensation for Growth
- The 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)1.41
PEG (5Y)1.05
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.
- Compared to an average S&P500 Dividend Yield of 1.81, INGR pays a better dividend.
| 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.
- The dividend of INGR decreased recently.
Dividend Growth(5Y)4.4%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- INGR pays out 32.02% of its income as dividend. This is a sustainable payout ratio.
- INGR's earnings are growing slower than its dividend. 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%.