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ING

Inghams GroupASX:ING Stock Report

Market Cap

AU$1.4b

7D

-2.1%

1Y

29.4%

Updated

26 Oct, 2021

Data

Company Financials +
ING fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends3/6

ING Overview

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

Inghams Group Competitors

Australian Agricultural

ASX:AAC

AU$952.4m

Tassal Group

ASX:TGR

AU$751.9m

Huon Aquaculture Group

ASX:HUO

AU$420.8m

Seafarms Group

ASX:SFG

AU$232.1m

Price History & Performance

Summary of all time highs, changes and price drops for Inghams Group
Historical stock prices
Current Share PriceAU$3.74
52 Week HighAU$2.83
52 Week LowAU$4.26
Beta0.31
1 Month Change-5.79%
3 Month Change-2.09%
1 Year Change29.41%
3 Year Change-4.84%
5 Year Changen/a
Change since IPO16.15%

Recent News & Updates

Oct 06
We Think Inghams Group (ASX:ING) Can Stay On Top Of Its Debt

We Think Inghams Group (ASX:ING) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 27
Inghams Group (ASX:ING) Is Paying Out A Larger Dividend Than Last Year

Inghams Group (ASX:ING) Is Paying Out A Larger Dividend Than Last Year

Inghams Group Limited ( ASX:ING ) will increase its dividend on the 6th of October to AU$0.09. This will take the...

Aug 22
Earnings Update: Inghams Group Limited (ASX:ING) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Earnings Update: Inghams Group Limited (ASX:ING) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a good week for Inghams Group Limited ( ASX:ING ) shareholders, because the company has just released its...

Shareholder Returns

INGAU FoodAU Market
7D-2.1%0.9%0.8%
1Y29.4%5.6%24.4%

Return vs Industry: ING exceeded the Australian Food industry which returned 5.6% over the past year.

Return vs Market: ING exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ING's price volatile compared to industry and market?
ING volatility
ING Beta0.31
Industry Beta0.55
Market Beta1

Stable Share Price: ING is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ING's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1918n/aAndrew Reeveshttps://www.inghams.com.au

Inghams Group Limited, together with its subsidiaries, produces and sells chicken and turkey products in Australia and New Zealand. The company provides, fresh, fresh with flavor, frozen, gluten free, and ready to cook chicken and turkey products under the Ingham’s brand name. It also offers stock feeds for poultry, pig, and dairy industries.

Inghams Group Fundamentals Summary

How do Inghams Group's earnings and revenue compare to its market cap?
ING fundamental statistics
Market CapAU$1.42b
Earnings (TTM)AU$83.30m
Revenue (TTM)AU$2.67b

16.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ING income statement (TTM)
RevenueAU$2.67b
Cost of RevenueAU$2.18b
Gross ProfitAU$486.80m
ExpensesAU$403.50m
EarningsAU$83.30m

Last Reported Earnings

Jun 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin18.24%
Net Profit Margin3.12%
Debt/Equity Ratio312.7%

How did ING perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

74%

Payout Ratio

Valuation

Is Inghams Group undervalued compared to its fair value and its price relative to the market?

38.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ING (A$3.74) is trading below our estimate of fair value (A$6.04)

Significantly Below Fair Value: ING is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ING is good value based on its PE Ratio (16.7x) compared to the Australian Food industry average (21.3x).

PE vs Market: ING is good value based on its PE Ratio (16.7x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: ING is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ING is overvalued based on its PB Ratio (8.5x) compared to the AU Food industry average (1.7x).


Future Growth

How is Inghams Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ING's forecast earnings growth (9.5% per year) is above the savings rate (1.9%).

Earnings vs Market: ING's earnings (9.5% per year) are forecast to grow slower than the Australian market (12.4% per year).

High Growth Earnings: ING's earnings are forecast to grow, but not significantly.

Revenue vs Market: ING's revenue (3.4% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: ING's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ING's Return on Equity is forecast to be very high in 3 years time (45.9%).


Past Performance

How has Inghams Group performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ING has high quality earnings.

Growing Profit Margin: ING's current net profit margins (3.1%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: ING's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: ING's earnings growth over the past year (106.9%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: ING earnings growth over the past year (106.9%) exceeded the Food industry 45.2%.


Return on Equity

High ROE: Whilst ING's Return on Equity (50.92%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Inghams Group's financial position?


Financial Position Analysis

Short Term Liabilities: ING's short term assets (A$702.4M) do not cover its short term liabilities (A$703.0M).

Long Term Liabilities: ING's short term assets (A$702.4M) do not cover its long term liabilities (A$1.7B).


Debt to Equity History and Analysis

Debt Level: ING's debt to equity ratio (312.7%) is considered high.

Reducing Debt: ING's debt to equity ratio has reduced from 20551.7% to 312.7% over the past 5 years.

Debt Coverage: ING's debt is well covered by operating cash flow (86%).

Interest Coverage: ING's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

4.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ING's dividend (4.41%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: ING's dividend (4.41%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: ING has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ING's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.6%), ING's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ING's dividends in 3 years are forecast to be covered by earnings (67% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Andrew Reeves

0.58

Tenure

AU$2,013,512

Compensation

Mr. Andrew Maxwell Reeves serves as an Executive Director at Inghams Group Limited since March 29, 2021. He serves as Chairman of irexchange Limited (formerly known as Netget Australia Pty Ltd). Mr. Reeves...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.51M) is above average for companies of similar size in the Australian market ($USD991.03K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ING's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: ING's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Inghams Group Limited's 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$1.418b
  • Shares outstanding: 372.10m
  • Website: https://www.inghams.com.au

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 00:00
Earnings2021/06/26
Annual Earnings2021/06/26


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.