ASX:ING

Stock Analysis Report

Executive Summary

Inghams Group Limited, together with its subsidiaries, produces and sells poultry products in Australia and New Zealand.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.

Share Price & News

How has Inghams Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

ASX:ING

-3.9%

AU Food

-2.5%

AU Market


1 Year Return

4.7%

ASX:ING

-20.1%

AU Food

-0.6%

AU Market

ING outperformed the Food industry which returned -20.1% over the past year.

ING outperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

INGIndustryMarket
7 Day2.9%-3.9%-2.5%
30 Day-3.6%-9.4%-4.4%
90 Day-12.0%-12.4%-1.1%
1 Year18.9%4.7%-18.0%-20.1%5.1%-0.6%
3 Yearn/a-12.2%-16.6%30.2%13.1%
5 Yearn/a22.9%12.0%36.5%5.9%

Price Volatility Vs. Market

How volatile is Inghams Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Inghams Group undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Inghams Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Inghams Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Inghams Group is good value based on earnings compared to the AU Food industry average.

Inghams Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Inghams Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Inghams Group is overvalued based on assets compared to the AU Food industry average.


Next Steps

Future Growth

How is Inghams Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Inghams Group's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Inghams Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Inghams Group's revenue growth is positive but not above the Australia market average.

Inghams Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Inghams Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Inghams Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Inghams Group performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Inghams Group has delivered over 20% year on year earnings growth in the past 5 years.

Inghams Group's 1-year earnings growth is less than its 5-year average (15.4% vs 23.4%)

Inghams Group's earnings growth has exceeded the AU Food industry average in the past year (15.4% vs -12.1%).


Return on Equity

Whilst Inghams Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Inghams Group used its assets more efficiently than the AU Food industry average last year based on Return on Assets.


Return on Capital Employed

Inghams Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Inghams Group's financial position?


Financial Position Analysis

Inghams Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Inghams Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Inghams Group's level of debt (214.6%) compared to net worth is high (greater than 40%).

Unable to establish if Inghams Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (48.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

What is Inghams Group's current dividend yield, its reliability and sustainability?

5.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Inghams Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).

Inghams Group's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Inghams Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Inghams Group only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Inghams Group's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average management tenure


CEO

Jim Leighton (63yo)

0.8yrs

Tenure

0

Mr. James B. Leighton, also known as Jim, serves as Managing Director, Chief Executive Officer and Director at Inghams Group since November 14, 2018. Mr. Leighton served as an Interim Chief Executive Offic ...


Management Age and Tenure

0.2yrs

Average Tenure

The average tenure for the Inghams Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Inghams Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • David Matthews

    Company Secretary

    • Tenure: 0.0yrs
  • Jim Leighton (63yo)

    MD, CEO & Director

    • Tenure: 0.8yrs
  • Craig Haskins

    Investor Relations Director

    • Tenure: 0.1yrs
  • Jonathan Gray

    CEO of New Zealand

    • Tenure: 0.4yrs
    • Compensation: AU$910.00k
  • Leslie Hadley

    Head of Planning

    • Tenure: 0.0yrs
  • Grant Kerswell

    Chief People Officer

    • Tenure: 0.1yrs
  • Katherine Balding

    Group Technical Services Director

    • Tenure: 0.0yrs
  • Tim Singleton

    Chief Operations Officer

    • Tenure: 0.2yrs
  • Chris Croese

    Chief Customer Officer

    • Tenure: 0.2yrs
  • Seb Brandt

    Chief Marketing Officer

    • Tenure: 0.2yrs

Board Members

  • PH Bush (68yo)

    Non-Executive Chairman ( Leave of Absence)

    • Tenure: 0.0yrs
    • Compensation: AU$350.00k
  • Linda Nicholls (71yo)

    Non Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: AU$160.00k
  • Rob Gordon

    Non-Executive Director

    • Tenure: 0.3yrs
  • Jim Leighton (63yo)

    MD, CEO & Director

    • Tenure: 0.8yrs
  • Ricky Lau (49yo)

    Non-Executive Director

    • Tenure: 5.8yrs
  • Andrew Reeves

    Director

    • Tenure: 0.6yrs
  • Jackie McArthur (48yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: AU$110.00k
  • Helen Elizabeth Nash (47yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: AU$160.00k

Company Information

Inghams Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inghams Group Limited
  • Ticker: ING
  • Exchange: ASX
  • Founded: 1918
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$1.431b
  • Shares outstanding: 371.68m
  • Website: https://www.inghams.com.au

Location

  • Inghams Group Limited
  • 1 Julius Avenue
  • Level 4
  • North Ryde
  • New South Wales
  • 2113
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2016
IH1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2016
INGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2016

Biography

Inghams Group Limited, together with its subsidiaries, produces and sells poultry products in Australia and New Zealand. It offers chicken and turkey products; and stock feed for poultry, pig, dairy, and e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 10:40
End of Day Share Price2019/08/19 00:00
Earnings2018/12/29
Annual Earnings2018/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.