INGREDION INC (INGR) Stock Fundamental Analysis
NYSE:INGR - New York Stock Exchange, Inc. - US4571871023 - Common Stock - Currency: USD
INGR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making INGR a very profitable company, without any liquidiy or solvency issues. INGR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Each year in the past 5 years INGR has been profitable.
INGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INGR has a better Return On Assets (8.41%) than 86.81% of its industry peers.
INGR has a better Return On Equity (15.79%) than 82.42% of its industry peers.
INGR has a better Return On Invested Capital (12.58%) 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 28.20%.
The 3 year average ROIC (10.82%) for INGR is below the current ROIC(12.58%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (8.53%) than 82.42% 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 14.63%, INGR belongs to the top of the industry, outperforming 83.52% of the companies in the same industry.
INGR's Operating Margin has improved in the last couple of years.
INGR has a Gross Margin (25.00%) which is in line with its industry peers.
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
An Altman-Z score of 4.19 indicates that INGR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, INGR belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
The Debt to FCF ratio of INGR is 1.83, which is an excellent value as it means it would take INGR, only 1.83 years of fcf income to pay off all of its debts.
INGR's Debt to FCF ratio of 1.83 is amongst the best of the industry. INGR outperforms 85.71% of its industry peers.
INGR has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, INGR perfoms like the industry average, outperforming 49.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.69
WACC7.46%
2.3 Liquidity
A Current Ratio of 2.85 indicates that INGR has no problem at all paying its short term obligations.
INGR has a Current ratio of 2.85. This is in the better half of the industry: INGR outperforms 78.02% of its industry peers.
A Quick Ratio of 1.86 indicates that INGR should not have too much problems paying its short term obligations.
INGR's Quick ratio of 1.86 is amongst the best of 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
The Earnings Per Share has grown by an impressive 24.54% 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 -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)24.54%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%0%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-2.4%
3.2 Future
The Earnings Per Share is expected to grow by 1.34% on average over the next years.
The Revenue is expected to grow by 1.39% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y5.76%
EPS Next 3Y4.04%
EPS Next 5Y1.34%
Revenue Next Year0.35%
Revenue Next 2Y1.49%
Revenue Next 3Y1.86%
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.
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
With a Price/Earnings ratio of 10.99, the valuation of INGR can be described as very reasonable.
Based on the Price/Earnings ratio, INGR is valued a bit cheaper than 79.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. INGR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.65, which indicates a very decent valuation of INGR.
INGR's Price/Forward Earnings ratio is rather cheap when compared to the industry. INGR is cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, INGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INGR is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
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 | 8.34 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
INGR's 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)1.3
PEG (5Y)1.11
EPS Next 2Y5.76%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
INGR has a Yearly Dividend Yield of 2.53%.
INGR's Dividend Yield is a higher than the industry average which is at 4.74.
INGR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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 33.60% 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.
DP33.6%
EPS Next 2Y5.76%
EPS Next 3Y4.04%
126.6
+0.23 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change0.14%
Ins Owners0.81%
Ins Owner Change3.27%
Market Cap8.14B
Analysts76.92
Price Target153.74 (21.44%)
Short Float %2.33%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)0.22%
PT rev (3m)0.35%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-4.26%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.65 | ||
| P/S | 1.11 | ||
| P/FCF | 8.34 | ||
| P/OCF | 6.24 | ||
| P/B | 2.05 | ||
| P/tB | 3 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)11.52
EY9.1%
EPS(NY)11.89
Fwd EY9.39%
FCF(TTM)15.18
FCFY11.99%
OCF(TTM)20.28
OCFY16.02%
SpS114.46
BVpS61.84
TBVpS42.19
PEG (NY)1.3
PEG (5Y)1.11
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 | 4.19 |
F-Score7
WACC7.46%
ROIC/WACC1.69
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)24.54%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%0%
EPS Next Y8.43%
EPS Next 2Y5.76%
EPS Next 3Y4.04%
EPS Next 5Y1.34%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-2.4%
Revenue Next Year0.35%
Revenue Next 2Y1.49%
Revenue Next 3Y1.86%
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%