INGREDION INC (INGR) Stock Fundamental Analysis
NYSE:INGR - New York Stock Exchange, Inc. - US4571871023 - Common Stock - Currency: USD
Overall INGR gets a fundamental rating of 7 out of 10. We evaluated INGR against 89 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 has a decent growth rate and is not valued too expensively.
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
INGR's Return On Assets of 8.41% is amongst the best of the industry. INGR outperforms 86.52% of its industry peers.
INGR has a Return On Equity of 15.79%. This is amongst the best in the industry. INGR outperforms 83.15% of its industry peers.
INGR's Return On Invested Capital of 12.58% is amongst the best of the industry. INGR outperforms 89.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INGR is above the industry average of 7.60%.
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's Profit Margin of 8.53% is amongst the best of the industry. INGR outperforms 80.90% of its industry peers.
In the last couple of years the Profit Margin of INGR has grown nicely.
The Operating Margin of INGR (14.63%) is better than 83.15% of its industry peers.
INGR's Operating Margin has improved in the last couple of years.
INGR's Gross Margin of 25.00% is in line compared to the rest of the industry. INGR outperforms 59.55% of 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.
INGR has less shares outstanding than it did 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 4.32. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.32, INGR belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
INGR has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
INGR has a better Debt to FCF ratio (1.83) than 88.76% 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.
Looking at the Debt to Equity ratio, with a value of 0.45, INGR is in line with its industry, outperforming 49.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.34
WACC9.38%
2.3 Liquidity
INGR has a Current Ratio of 2.85. This indicates that INGR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of INGR (2.85) is better than 79.78% 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 has a better Quick ratio (1.86) than 85.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.86 |
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.
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.
Looking at the last year, INGR shows a decrease in Revenue. The Revenue has decreased by -6.88% 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)32.41%
EPS 3Y16.87%
EPS 5Y9.9%
EPS Q2Q%42.79%
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
3.2 Future
INGR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.34% yearly.
Based on estimates for the next years, INGR will show a small growth in Revenue. The Revenue will grow by 1.39% on average per year.
EPS Next Y8.27%
EPS Next 2Y5.68%
EPS Next 3Y3.89%
EPS Next 5Y1.34%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.84%
Revenue Next 5Y1.39%
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
With a Price/Earnings ratio of 12.00, INGR is valued correctly.
Based on the Price/Earnings ratio, INGR is valued a bit cheaper than 74.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of INGR to the average of the S&P500 Index (26.31), we can say INGR is valued rather cheaply.
A Price/Forward Earnings ratio of 11.65 indicates a reasonable 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 77.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, INGR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.65 |
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 74.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INGR is valued cheaply inside the industry as 89.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 7.56 |
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)1.45
PEG (5Y)1.21
EPS Next 2Y5.68%
EPS Next 3Y3.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, INGR has a reasonable but not impressive dividend return.
INGR's Dividend Yield is a higher than the industry average which is at 4.49.
INGR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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
33.60% 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.
DP33.6%
EPS Next 2Y5.68%
EPS Next 3Y3.89%
138.26
-1.18 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change1.29%
Ins Owners0.81%
Ins Owner Change3.06%
Market Cap8.89B
Analysts76.92
Price Target153.4 (10.95%)
Short Float %3.14%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)1.81%
PT rev (3m)-3.97%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)0%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.65 | ||
| P/S | 1.21 | ||
| P/FCF | 9.11 | ||
| P/OCF | 6.82 | ||
| P/B | 2.24 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)11.52
EY8.33%
EPS(NY)11.87
Fwd EY8.59%
FCF(TTM)15.18
FCFY10.98%
OCF(TTM)20.28
OCFY14.67%
SpS114.46
BVpS61.84
TBVpS42.19
PEG (NY)1.45
PEG (5Y)1.21
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 | 4.32 |
F-Score7
WACC9.38%
ROIC/WACC1.34
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 5Y1.34%
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.53%
Revenue growth 5Y3.66%
Sales Q2Q%-3.67%
Revenue Next Year0.31%
Revenue Next 2Y1.44%
Revenue Next 3Y1.84%
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%