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 Analysis

Moderate growth potential with mediocre 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

Stable Share Price: ING has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

ING

-5.4%

AU Food

-6.2%

AU Market


1 Year Return

-21.6%

ING

-10.1%

AU Food

7.9%

AU Market

Return vs Industry: ING underperformed the Australian Food industry which returned -7% over the past year.

Return vs Market: ING underperformed the Australian Market which returned 10.9% over the past year.


Shareholder returns

INGIndustryMarket
7 Day-4.2%-5.4%-6.2%
30 Day-3.6%-5.8%-5.9%
90 Day6.5%-1.3%-2.7%
1 Year-17.3%-21.6%-7.3%-10.1%12.6%7.9%
3 Year31.8%5.8%6.1%-1.8%31.3%13.8%
5 Yearn/a27.9%16.9%42.6%10.6%

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 compared to its fair value and its price relative to the market?

15.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ING (A$3.45) is trading below our estimate of fair value (A$4.06)

Significantly Below Fair Value: ING is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ING is good value based on its PE Ratio (18.9x) compared to the Food industry average (19.4x).

PE vs Market: ING is poor value based on its PE Ratio (18.9x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ING is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ING is overvalued based on its PB Ratio (8.8x) compared to the AU Food industry average (1.2x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ING's forecast earnings growth (12.2% per year) is above the savings rate (1.1%).

Earnings vs Market: ING's earnings (12.2% per year) are forecast to grow faster than the Australian market (9.5% per year).

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

Revenue vs Market: ING's revenue (2.8% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: ING's revenue (2.8% 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%).


Next Steps

Past Performance

How has Inghams Group performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ING has high quality earnings.

Growing Profit Margin: ING's current net profit margins (2.7%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: ING's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: ING's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ING had negative earnings growth (-48.9%) over the past year, making it difficult to compare to the Food industry average (-21.4%).


Return on Equity

High ROE: Whilst ING's Return on Equity (46.93%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Inghams Group's financial position?


Financial Position Analysis

Short Term Liabilities: ING's short term assets (A$643.6M) exceed its short term liabilities (A$565.3M).

Long Term Liabilities: ING's short term assets (A$643.6M) do not cover its long term liabilities (A$1.9B).


Debt to Equity History and Analysis

Debt Level: ING's debt to equity ratio (345%) is considered high.

Reducing Debt: Insufficient data to determine if ING's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ING's debt is well covered by operating cash flow (48.1%).

Interest Coverage: ING's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: ING has a high level of physical assets or inventory.

Debt Coverage by Assets: ING's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

5.65%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 27 2020Ex Dividend DateMar 13 2020Dividend Pay DateApr 09 202027 days from Ex DividendBuy in the next 15 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: ING's dividend (5.65%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ING's dividend (5.65%) is in the top 25% of dividend payers in the Australian market (5.53%)


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.5%), ING's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ING's dividends in 3 years are forecast to be covered by earnings (71% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Jim Leighton (63yo)

1.3yrs

Tenure

AU$2,019,200

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.33M) is above average for companies of similar size in the Australian market ($USD936.12K).

Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
James Leighton
MD, CEO & Director1.3yrsAU$2.02m0.025% A$323.4k
Jonathan Gray
CEO of New Zealand0.9yrsAU$941.00k0.075% A$966.0k
Cate Chandler
General Manager of Finance0yrsno datano data
Gary Mallett
Chief Financial Officer0.3yrsno datano data
Tim Singleton
Chief Operations Officer0.7yrsno datano data
Craig Haskins
Investor Relations Director0.6yrsno datano data
David Matthews
General Counsel & Company Secretary3.2yrsno datano data
Seb Brandt
Chief Marketing Officer0.7yrsno datano data
Grant Kerswell
Chief People Officer0.6yrsno datano data
Leslie Hadley
Head of Planning0yrsno datano data

0.7yrs

Average Tenure

Experienced Management: ING's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Leighton
MD, CEO & Director1.3yrsAU$2.02m0.025% A$323.4k
Peter Bush
Non-Executive Chairman0yrsAU$350.00k0.043% A$547.7k
Linda Nicholls
Non-Executive Director3.3yrsAU$160.00k0.0089% A$113.6k
Robert Gordon
Non-Executive Director0.8yrsAU$31.00k0.0042% A$54.4k
Wai Kei Lau
Non-Executive Director6.3yrsno datano data
Andrew Reeves
Non-Executive Director1.1yrsAU$58.00kno data
Jacqueline McArthur
Independent Director2.4yrsAU$140.00k0.0052% A$66.0k
Helen Elizabeth Nash
Independent Director2.8yrsAU$160.00k0.0079% A$101.3k

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: ING's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: ING 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 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$1.282b
  • 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 equine industries. The company was founded in 1918 and is based in North Ryde, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:49
End of Day Share Price2020/02/26 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


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.