NYSE:INGR

Stock Analysis Report

Executive Summary

Ingredion Incorporated, together with its subsidiaries, produces and sells starches and sweeteners for various industries.

Snowflake

Fundamentals

Very undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

INGR

0.09%

US Food

-0.6%

US Market


1 Year Return

-21.2%

INGR

1.4%

US Food

0.6%

US Market

INGR underperformed the Food industry which returned 1.7% over the past year.

INGR underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

INGRIndustryMarket
7 Day-1.8%0.09%-0.6%
30 Day7.1%2.0%2.2%
90 Day0.2%2.2%1.1%
1 Year-19.0%-21.2%4.4%1.4%2.9%0.6%
3 Year-32.4%-36.5%-1.4%-10.0%44.6%35.2%
5 Year18.9%8.0%46.5%29.1%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

2 weeks ago | Simply Wall St

Did You Manage To Avoid Ingredion's (NYSE:INGR) 44% Share Price Drop?

Valuation

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

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ingredion's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ingredion's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Ingredion is good value based on earnings compared to the US Food industry average.

Ingredion is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ingredion is good value based on expected growth next year.


Price Based on Value of Assets

Ingredion is good value based on assets compared to the US Food industry average.


Next Steps

Future Growth

How is Ingredion expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ingredion's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

Ingredion's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).

Ingredion's revenue growth is positive but not above the United States of America market average.

Ingredion's earnings growth is expected to exceed the United States of America market average.

Ingredion's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ingredion will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ingredion performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ingredion's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Ingredion's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ingredion's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

Ingredion has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ingredion used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Ingredion's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ingredion's financial position?


Financial Position Analysis

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

Ingredion's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ingredion's level of debt (78.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (68.5% vs 78.6% today).

Debt is well covered by operating cash flow (29.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

3.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ingredion's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ingredion's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jim Zallie (58yo)

1.7yrs

Tenure

US$6,222,548

Compensation

Mr. James P. Zallie, also known as Jim, has been President and CEO of Ingredion Incorporated since January 1, 2018 and also has been it's Director since September 2017. Mr. Zallie served as Executive Vice ...


CEO Compensation Analysis

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

51.5yo

Average Age

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


Board Age and Tenure

6.1yrs

Average Tenure

61yo

Average Age

The tenure for the Ingredion board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$78,37028 May 19
James Gray
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,000
Max PriceUS$78.37
SellUS$683,70806 Dec 18
Christine Castellano
EntityIndividual
Shares6,499
Max PriceUS$105.20
SellUS$183,64615 Nov 18
Barbara Klein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,775
Max PriceUS$103.46

Ownership Breakdown


Management Team

  • Tony DeLio (63yo)

    Senior VP of Corporate Strategy & Chief Innovation Officer

    • Tenure: 5.7yrs
  • Ernesto Pousada (50yo)

    Senior VP & President of South America

    • Tenure: 1.7yrs
    • Compensation: US$1.37m
  • Jim Zallie (58yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$6.22m
  • Janet Bawcom

    Senior VP

    • Tenure: 0.4yrs
  • Jorgen Kokke (50yo)

    Executive VP of Global Specialties & President of North America

    • Tenure: 1.6yrs
    • Compensation: US$2.07m
  • Bob Stefansic (57yo)

    Senior VP of Operating Excellence & Information Technology and Chief Supply Chain Officer

    • Tenure: 5.7yrs
  • Pierre Perez Landazuri (50yo)

    Senior VP & President of EMEA

    • Tenure: 1.7yrs
  • Jim Gray (52yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$2.00m
  • Elizabeth Adefioye (51yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.5yrs
  • Ryan Koller

    Interim Director of Investor Relations & Director of Finance

    • Tenure: 0yrs

Board Members

  • Paul Hanrahan (61yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$228.00k
  • Barb Klein (64yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$220.00k
  • Gregory Kenny (66yo)

    Non-Executive Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: US$296.83k
  • Victoria Reich (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$246.25k
  • Luis Aranguren-Trellez (57yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$220.00k
  • Jorge Uribe (63yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$220.00k
  • Dave Fischer (56yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$220.00k
  • Jim Zallie (58yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$6.22m
  • Dwayne Wilson (60yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$220.00k
  • Rhonda Jordan (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$234.50k

Company Information

Ingredion Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ingredion Incorporated
  • Ticker: INGR
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$5.476b
  • Shares outstanding: 66.73m
  • Website: https://www.ingredion.com

Number of Employees


Location

  • Ingredion Incorporated
  • 5 Westbrook Corporate Center
  • Westchester
  • Illinois
  • 60154
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INGRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1997
CNPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1997

Biography

Ingredion Incorporated, together with its subsidiaries, produces and sells starches and sweeteners for various industries. The company operates through four segments: North America, South America, Asia Pac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.