INGREDION INC (INGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INGR - US4571871023 - Common Stock
116.99 USD
+0.3 (+0.26%)
116.99 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to INGR. INGR was compared to 87 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 has a bad growth rate and is valued cheaply. This makes INGR very considerable 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
- The Return On Assets of INGR (8.41%) is better than 90.80% of its industry peers.
- With an excellent Return On Equity value of 15.55%, INGR belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
- INGR has a better Return On Invested Capital (11.85%) than 90.80% of its industry peers.
- INGR had an Average Return On Invested Capital over the past 3 years of 10.82%. This is significantly below the industry average of 27.79%.
- The 3 year average ROIC (10.82%) for INGR is below the current ROIC(11.85%), indicating increased profibility in the last year.
| 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's Profit Margin of 9.07% is amongst the best of the industry. INGR outperforms 86.21% of its industry peers.
- In the last couple of years the Profit Margin of INGR has grown nicely.
- The Operating Margin of INGR (14.60%) is better than 89.66% of its industry peers.
- INGR's Operating Margin has improved in the last couple of years.
- INGR has a Gross Margin of 25.43%. This is in the better half of the industry: INGR outperforms 62.07% of its industry peers.
- INGR's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), INGR is creating some value.
- Compared to 1 year ago, INGR has less shares outstanding
- 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 3.94. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
- INGR's Altman-Z score of 3.94 is amongst the best of the industry. INGR outperforms 80.46% of its industry peers.
- The Debt to FCF ratio of INGR is 3.29, which is a good value as it means it would take INGR, 3.29 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of INGR (3.29) is better than 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
WACC7.35%
2.3 Liquidity
- A Current Ratio of 2.75 indicates that INGR has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.75, INGR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- INGR has a Quick Ratio of 1.79. This is a normal value and indicates that INGR is financially healthy and should not expect problems in meeting its short term obligations.
- INGR has a better Quick ratio (1.79) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.54% over the past year.
- INGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.90% yearly.
- Looking at the last year, INGR shows a decrease in Revenue. The Revenue has decreased by -3.83% in the last year.
- 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
- INGR is valuated reasonably with a Price/Earnings ratio of 10.43.
- Based on the Price/Earnings ratio, INGR is valued cheaper than 83.91% of the companies in the same industry.
- INGR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 10.07, which indicates a very decent valuation of INGR.
- Based on the Price/Forward Earnings ratio, INGR is valued cheaper than 88.51% of the companies in the same industry.
- INGR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INGR is valued cheaply inside the industry as 83.91% of the companies are valued more expensively.
- 75.86% of the companies in the same industry are more expensive than INGR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 6.43 |
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.
- Compared to an average industry Dividend Yield of 2.29, INGR pays a bit more dividend than its industry peers.
- INGR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- INGR has decreased its dividend 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.
- The dividend of INGR is growing, but the earnings are growing slower. 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%.