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 90 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make INGR a good candidate 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.
INGR had positive earnings in each of the past 5 years.
INGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INGR's Return On Assets of 8.69% is amongst the best of the industry. INGR outperforms 87.78% of its industry peers.
INGR has a better Return On Equity (17.01%) than 86.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.03%, INGR belongs to the top of the industry, outperforming 88.89% 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 8.67%.
The 3 year average ROIC (10.82%) for INGR is below the current ROIC(12.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 17.01% | ||
| ROIC | 12.03% |
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 8.71% is amongst the best of the industry. INGR outperforms 82.22% of its industry peers.
In the last couple of years the Profit Margin of INGR has grown nicely.
INGR has a Operating Margin of 13.59%. This is amongst the best in the industry. INGR outperforms 83.33% 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 24.11%, INGR is in line with its industry, outperforming 58.89% of the companies in the same industry.
INGR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.59% | ||
| PM (TTM) | 8.71% | ||
| GM | 24.11% |
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.
Compared to 1 year ago, INGR has less shares outstanding
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 4.20 indicates that INGR is not in any danger for bankruptcy at the moment.
The Altman-Z score of INGR (4.20) is better than 82.22% of its industry peers.
INGR has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
The Debt to FCF ratio of INGR (1.61) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that INGR is not too dependend on debt financing.
INGR's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. INGR outperforms 48.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.53
WACC7.84%
2.3 Liquidity
A Current Ratio of 2.62 indicates that INGR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.62, INGR is doing good in the industry, outperforming 76.67% of the companies in the same industry.
INGR has a Quick Ratio of 1.69. 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 1.69 is amongst the best of the industry. INGR outperforms 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.69 |
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.
The Earnings Per Share has been growing by 9.90% on average over the past years. This is quite good.
The Revenue has decreased by -8.95% 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)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
3.2 Future
The Earnings Per Share is expected to grow by 1.24% on average over the next years.
The Revenue is expected to grow by 1.27% on average over the next years.
EPS Next Y8.27%
EPS Next 2Y5.68%
EPS Next 3Y3.89%
EPS Next 5Y1.24%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.85%
Revenue Next 5Y1.27%
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.
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 11.91, which indicates a very decent valuation of INGR.
Compared to the rest of the industry, the Price/Earnings ratio of INGR indicates a somewhat cheap valuation: INGR is cheaper than 75.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. INGR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.56, which indicates a very decent valuation of INGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INGR indicates a somewhat cheap valuation: INGR is cheaper than 78.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. INGR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INGR indicates a somewhat cheap valuation: INGR is cheaper than 73.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INGR is valued cheaper than 85.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 7.9 |
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)1.44
PEG (5Y)1.2
EPS Next 2Y5.68%
EPS Next 3Y3.89%
5. Dividend
5.1 Amount
INGR has a Yearly Dividend Yield of 2.30%.
INGR's Dividend Yield is a higher than the industry average which is at 4.58.
Compared to an average S&P500 Dividend Yield of 2.36, INGR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.4%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
32.46% 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.
DP32.46%
EPS Next 2Y5.68%
EPS Next 3Y3.89%
137.24
-1.11 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners92.46%
Inst Owner Change1.46%
Ins Owners0.83%
Ins Owner Change3.28%
Market Cap8.82B
Analysts76.92
Price Target150.68 (9.79%)
Short Float %2.94%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend3.24
Dividend Growth(5Y)4.4%
DP32.46%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.1%
Min EPS beat(2)0.51%
Max EPS beat(2)15.7%
EPS beat(4)3
Avg EPS beat(4)7.07%
Min EPS beat(4)-0.94%
Max EPS beat(4)15.7%
EPS beat(8)6
Avg EPS beat(8)10.4%
EPS beat(12)10
Avg EPS beat(12)9.38%
EPS beat(16)13
Avg EPS beat(16)9.18%
Revenue beat(2)0
Avg Revenue beat(2)-5.8%
Min Revenue beat(2)-5.81%
Max Revenue beat(2)-5.79%
Revenue beat(4)0
Avg Revenue beat(4)-6.72%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)-5.79%
Revenue beat(8)0
Avg Revenue beat(8)-6.68%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)4
Avg Revenue beat(16)-3.23%
PT rev (1m)-5.67%
PT rev (3m)-10.14%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)2.07%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 11.56 | ||
| P/S | 1.19 | ||
| P/FCF | 7.77 | ||
| P/OCF | 6.15 | ||
| P/B | 2.32 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)11.52
EY8.39%
EPS(NY)11.87
Fwd EY8.65%
FCF(TTM)17.65
FCFY12.86%
OCF(TTM)22.33
OCFY16.27%
SpS115.55
BVpS59.16
TBVpS39.5
PEG (NY)1.44
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 17.01% | ||
| ROCE | 16.39% | ||
| ROIC | 12.03% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 18.97% | ||
| OM | 13.59% | ||
| PM (TTM) | 8.71% | ||
| GM | 24.11% | ||
| FCFM | 15.28% |
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 Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 140.65% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 21.04 | ||
| Cash Conversion | 117.32% | ||
| Profit Quality | 175.43% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.2 |
F-Score7
WACC7.84%
ROIC/WACC1.53
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 Y8.27%
EPS Next 2Y5.68%
EPS Next 3Y3.89%
EPS Next 5Y1.24%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.85%
Revenue Next 5Y1.27%
EBIT growth 1Y4.34%
EBIT growth 3Y13.16%
EBIT growth 5Y6.97%
EBIT Next Year26.03%
EBIT Next 3Y9.43%
EBIT Next 5Y5.34%
FCF growth 1Y53.17%
FCF growth 3Y131.07%
FCF growth 5Y26.38%
OCF growth 1Y35.86%
OCF growth 3Y54.15%
OCF growth 5Y16.13%