Ingredion, Inc.

  • Market Cap: Small Cap
  • Industry: FMCG
  • ISIN: US4571871023
USD
113.39
-1.44 (-1.25%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
McCormick & Co., Inc.
Mondelez International, Inc.
Darling Ingredients, Inc.
Ingredion, Inc.
The J. M. Smucker Co.
Kellanova
Post Holdings, Inc.
Lamb Weston Holdings, Inc.
The Hershey Co.
International Flavors & Fragrances, Inc.
Conagra Brands, Inc.

Why is Ingredion, Inc. ?

1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 4.40%
3
Flat results in Jun 25
  • ROCE(HY) Lowest at 17.11%
  • INTEREST COVERAGE RATIO(Q) Lowest at 2,758.33
  • DEBTORS TURNOVER RATIO(HY) Lowest at 5.53 times
4
With ROCE of 23.50%, it has a fair valuation with a 2.31 Enterprise value to Capital Employed
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -23.01%, its profits have fallen by -3.5%
5
Below par performance in long term as well as near term
  • Along with generating -23.01% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Ingredion, Inc. should be less than 10%
  2. Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ingredion, Inc. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Ingredion, Inc.
-16.3%
-0.18
19.59%
S&P 500
17.78%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
3.81%
EBIT Growth (5y)
10.55%
EBIT to Interest (avg)
15.08
Debt to EBITDA (avg)
1.61
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
1.31
Tax Ratio
31.13%
Dividend Payout Ratio
28.98%
Pledged Shares
0
Institutional Holding
98.14%
ROCE (avg)
17.66%
ROE (avg)
17.80%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.19
EV to EBIT
9.04
EV to EBITDA
7.58
EV to Capital Employed
1.97
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
59.37%
ROCE (Latest)
21.83%
ROE (Latest)
17.88%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
DIVIDEND PER SHARE(HY)

Highest at USD 6.34

RAW MATERIAL COST(Y)

Fallen by -1.17% (YoY

CASH AND EQV(HY)

Highest at USD 1,954 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.43 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.34 times

-13What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at USD 944 MM

INTEREST(Q)

At USD 9 MM has Grown at 28.57%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 32%

NET SALES(Q)

Lowest at USD 1,757 MM

OPERATING PROFIT(Q)

Lowest at USD 306 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.42 %

Here's what is working for Ingredion, Inc.

Dividend per share
Highest at USD 6.34 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv
Highest at USD 1,954 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 4.43 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 6.34 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -1.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ingredion, Inc.

Interest
At USD 9 MM has Grown at 28.57%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow
Lowest at USD 944 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales
Lowest at USD 1,757 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (USD MM)

Operating Profit
Lowest at USD 306 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin
Lowest at 17.42 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio
Lowest at 32%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)