INGREDION INC (INGR)
US4571871023 - Common Stock
Taking everything into account, INGR scores 7 out of 10 in our fundamental rating. INGR was compared to 92 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on INGR. These ratings would make INGR suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year INGR was profitable.
INGR had a positive operating cash flow in the past year.
Each year in the past 5 years INGR has been profitable.
Each year in the past 5 years INGR had a positive operating cash flow.
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 (18.17%) than 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 11.70%, INGR belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INGR is above the industry average of 7.59%.
The last Return On Invested Capital (11.70%) for INGR is above the 3 year average (10.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 18.17% | ||
| ROIC | 11.7% |
ROA(3y)5.53%
ROA(5y)5.7%
ROE(3y)12.53%
ROE(5y)12.91%
ROIC(3y)10.1%
ROIC(5y)9.96%
1.3 Margins
With a decent Profit Margin value of 7.88%, INGR is doing good in the industry, outperforming 79.12% of the companies in the same industry.
In the last couple of years the Profit Margin of INGR has grown nicely.
The Operating Margin of INGR (11.86%) is better than 82.42% of its industry peers.
In the last couple of years the Operating Margin of INGR has remained more or less at the same level.
The Gross Margin of INGR (21.43%) is comparable to the rest of the industry.
INGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.86% | ||
| PM (TTM) | 7.88% | ||
| GM | 21.43% |
OM growth 3Y1.71%
OM growth 5Y-0.55%
PM growth 3Y10.68%
PM growth 5Y2.27%
GM growth 3Y0.29%
GM growth 5Y-0.29%
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.
INGR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, INGR has less shares outstanding
INGR has a better debt/assets ratio than last year.
2.2 Solvency
INGR has an Altman-Z score of 3.70. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
INGR's Altman-Z score of 3.70 is fine compared to the rest of the industry. INGR outperforms 79.12% of its industry peers.
INGR has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as INGR would need 2.95 years to pay back of all of its debts.
INGR has a better Debt to FCF ratio (2.95) than 79.12% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that INGR is somewhat dependend on debt financing.
INGR has a Debt to Equity ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.5
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.92 indicates that INGR should not have too much problems paying its short term obligations.
The Current ratio of INGR (1.92) is better than 62.64% of its industry peers.
INGR has a Quick Ratio of 1.10. This is a normal value and indicates that INGR is financially healthy and should not expect problems in meeting its short term obligations.
INGR's Quick ratio of 1.10 is fine compared to the rest of the industry. INGR outperforms 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
INGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.44%, which is quite impressive.
Measured over the past 5 years, INGR shows a small growth in Earnings Per Share. The EPS has been growing by 6.39% on average per year.
The Revenue has been growing slightly by 2.69% in the past year.
The Revenue has been growing slightly by 5.35% on average over the past years.
EPS 1Y (TTM)26.44%
EPS 3Y14.78%
EPS 5Y6.39%
EPS growth Q2Q19.39%
Revenue 1Y (TTM)2.69%
Revenue growth 3Y10.87%
Revenue growth 5Y5.35%
Revenue growth Q2Q-3.32%
3.2 Future
INGR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
INGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.11% yearly.
EPS Next Y4.27%
EPS Next 2Y5.43%
EPS Next 3Y5.73%
EPS Next 5Y2.39%
Revenue Next Year-3.54%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.45%
Revenue Next 5Y2.11%
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 12.23, INGR is valued correctly.
Based on the Price/Earnings ratio, INGR is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of INGR to the average of the S&P500 Index (28.06), we can say INGR is valued rather cheaply.
The Price/Forward Earnings ratio is 11.73, 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 87.91% of the companies in the same industry.
INGR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
INGR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INGR is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INGR is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INGR does not grow enough to justify the current Price/Earnings ratio.
INGR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)1.91
EPS Next 2Y5.43%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
INGR has a Yearly Dividend Yield of 2.73%.
INGR's Dividend Yield is a higher than the industry average which is at 3.53.
INGR's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
The dividend of INGR has a limited annual growth rate of 2.44%.
INGR has been paying a dividend for at least 10 years, so it has a reliable track record.
INGR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.44%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
30.17% 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.
DP30.17%
EPS Next 2Y5.43%
EPS Next 3Y5.73%
INGREDION INC
NYSE:INGR (5/2/2024, 7:04:00 PM)
After market: 115.25 0 (0%)115.25
+0.95 (+0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.86
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 18.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.86% | ||
| PM (TTM) | 7.88% | ||
| GM | 21.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.44%
EPS 3Y14.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.69%
Revenue growth 3Y10.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y