The Company in a Nutshell
- The company enjoys strong geographic (120+ countries) and customer diversification (18,000+ customers).
- Although INGR generates 70% of its sales from its “core products”, growth is found in speciality products).
- Everybody has to eat, but not necessarily Ingredion’s products.
- We do not cover Ingredion at the moment.
Date Reviewed | N/A |
Company Name | Ingredion Inc |
Symbol | INGR |
Sector | Consumer Staples |
Industry | Packaged Foods |
Beta | 0.726 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Ingredion Incorporated is a global ingredients solutions provider that transforms grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. It develops, produces, and sells a variety of food and beverage ingredients, primarily starches and sweeteners, for various industries. It operates through four segments: North America, South America, Asia-Pacific, and Europe, Middle East and Africa (EMEA). Its products are derived primarily from the processing of corn and other starch-based materials, such as tapioca, potato, and rice. Its product lines include starches and sweeteners, animal feed products and edible corn oil. The starch-based products include both food-grade and industrial starches, as well as biomaterials. The sweetener products include glucose syrups, high maltose syrups, high fructose corn syrup, caramel color, dextrose, maltodextrins, and glucose and syrup solids.
Current price | 135.04 |
ROE | 19.25 % |
ROIC | 13.80 % |
Shareholder Yield | 0.15 % |
5-Yr Total Return | 94.40 % |
1-Yr Total Return | 39.50 % |
Next Earnings Date | 11-05-24 |
Latest Quarter Information
What the CEO said:
“In the second quarter, Ingredion achieved significant growth, led by Texture & Healthful Solutions, which experienced 8% sales volume growth year over year," stated Jim Zallie, president and CEO of Ingredion. “Additionally, our Food & Industrial segments were well positioned to respond to robust customer demand and delivered exceptionally strong profit growth.”
What we say:
05-31-2024. Ingredion used a new reporting structure for results and adjusted the Q1’23 results for that structure for comparability. INGR Q1’24 revenue was $1.88B, down 11.9%, and adjusted EPS was $2.08, down 25.7% from Q1’23. Sales declined across all segments, due to price mix and volume declines, mitigated by foreign exchange impacts. The South Korea divestiture resulted in a $51M decrease in sales volume for the period. Adjusted operating income of $216M fell 27% vs. Q1’23, due to downtime associated with cold weather, hyperinflation in Argentina, and the carry-forward of higher cost inventory. INGR raised its full-year guidance for EPS and adjusted EPS.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 5.35 % |
5-Yr EPS Growth | 9.25 % |
5-Yr Div Growth | 4.00 % |
Potential Risks
Debt/Equity | 0.60 |
Financial Debt to EBITDA (TTM) | 1.65 |
Current Ratio (Quarterly) | 1.90 |
Credit Score | 87 |
Dividend Growth Perspective
Dividend ($) | 3.2 |
Dividend Yield Fwd | 2.35 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 2.95 % |
Payout Ratio (%) | 30.95 |
Cash Payout Ratio (%) | 19.95 |
DGR 1-Yr | 9.85 |
DGR 3-Yr | 5.45 |
DGR 5-Yr | 4.00 |
DGR Streak | 13 |
Chowder Score | 6.35 |
Next DVD PMT | 10-22-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 9 B |
PE Ratio | 13.80 |
Fwd PE | 13.00 |
Price to Book Ratio | 2.40 |
DDM Valuation | N/A |
Average 5-Yr PE | 29.63 |
Value Score | 59 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.