NYSE:INGR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


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

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


Market Performance


7 Day Return

-0.7%

INGR

-1.3%

US Food

-2.4%

US Market


1 Year Return

-4.0%

INGR

8.5%

US Food

18.2%

US Market

Return vs Industry: INGR underperformed the US Food industry which returned 9% over the past year.

Return vs Market: INGR underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

INGRIndustryMarket
7 Day-0.7%-1.3%-2.4%
30 Day-5.4%4.3%4.2%
90 Day-9.5%3.6%6.3%
1 Year-1.0%-4.0%11.2%8.5%20.9%18.2%
3 Year-33.2%-38.4%11.7%2.6%41.2%31.8%
5 Year-6.3%-16.5%16.5%0.6%84.8%63.9%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INGR ($78.56) is trading below our estimate of fair value ($239.25)

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


Price To Earnings Ratio

PE vs Industry: INGR is good value based on its PE Ratio (15.1x) compared to the US Food industry average (25x).

PE vs Market: INGR is good value based on its PE Ratio (15.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: INGR is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: INGR is good value based on its PB Ratio (2x) compared to the US Food industry average (2.2x).


Next Steps

Future Growth

How is Ingredion forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INGR's forecast earnings growth (15.8% per year) is above the savings rate (2.2%).

Earnings vs Market: INGR's earnings (15.8% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: INGR's revenue (3.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: INGR's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INGR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ingredion performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INGR has high quality earnings.

Growing Profit Margin: INGR's current net profit margins (5.8%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: INGR's earnings have declined by 1.5% per year over the past 5 years.

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

Earnings vs Industry: INGR had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Food industry average (-5.6%).


Return on Equity

High ROE: INGR's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Ingredion's financial position?


Financial Position Analysis

Short Term Liabilities: INGR's short term assets ($2.8B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: INGR's short term assets ($2.8B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: INGR's debt to equity ratio (97.9%) is considered high.

Reducing Debt: INGR's debt to equity ratio has reduced from 99.4% to 97.9% over the past 5 years.

Debt Coverage: INGR's debt is well covered by operating cash flow (27.6%).

Interest Coverage: INGR's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INGR's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: INGR's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: INGR's dividends per share have been stable in the past 10 years.

Growing Dividend: INGR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.4%), INGR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INGR's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

2.7yrs

Average management tenure


CEO

Jim Zallie (59 yo)

2.75yrs

Tenure

US$8,474,334

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

Compensation vs Market: Jim's total compensation ($USD8.47M) is about average for companies of similar size in the US market ($USD7.31M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Zallie
President2.75yrsUS$8.47m0.048%
$ 2.5m
James Gray
Executive VP & CFO3.58yrsUS$2.34m0.014%
$ 735.3k
Janet Bawcom
Senior VP1.5yrsUS$1.45mno data
Elizabeth Adefioye
Senior VP & Chief Human Resources Officer2.58yrsUS$1.93m0.00048%
$ 24.7k
Jorgen Kokke
Executive VP of Global Specialties & President of North America2.67yrsUS$2.06m0.019%
$ 989.8k
Tiffany Willis
VP of Investor Relations & Corporate Communications Officer0.75yrno datano data
Anthony DeLio
Executive Officer6.75yrsno data0.017%
$ 874.4k
Robert Stefansic
Senior VP of Operating Excellence & Information Technology and Chief Supply Chain Officer6.75yrsno data0.0095%
$ 488.0k
Pierre Perez Landazuri
Senior VP & President of EMEA2.75yrsno data0.0015%
$ 79.9k
Larry Fernandes
Senior VP and Chief Commercial & Sustainability Officerno datano data0.024%
$ 1.2m
Valdirene Bastos-Licht
Senior VP & President of Asia-Pacific2.58yrsno datano data
Jeremy Xu
Senior VP & Chief Innovation Officerno datano datano data

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: INGR's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Zallie
President2.75yrsUS$8.47m0.048%
$ 2.5m
Paul Hanrahan
Independent Director14.58yrsUS$229.63kno data
Barbara Klein
Independent Director16.58yrsUS$220.00k0.0017%
$ 86.6k
Gregory Kenny
Independent Non-Executive Chairman of the Board2.17yrsUS$377.50kno data
Victoria Reich
Independent Director6.92yrsUS$246.20kno data
Luis Aranguren-Trellez
Independent Director17.42yrsUS$220.00k2.82%
$ 145.4m
Jorge Uribe
Independent Director5.25yrsUS$220.00k0.014%
$ 746.6k
David Fischer
Independent Director7.42yrsUS$238.00k0.0029%
$ 148.9k
Dwayne Wilson
Independent Director10.42yrsUS$220.00kno data
Stephan Tanda
Independent Director1.17yrsUS$81.28k0.0047%
$ 242.7k
Rhonda Jordan
Independent Director6.92yrsUS$243.50kno data

6.9yrs

Average Tenure

62yo

Average Age

Experienced Board: INGR's board of directors are considered experienced (6.9 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

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$5.153b
  • Shares outstanding: 66.99m
  • 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
INGR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1997

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:40
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.