Ingredion, Inc. (INGR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

Ingredion, Inc.

The J. M. Smucker Co.

Kellanova

Mondelez International, Inc.

Conagra Brands, Inc.

Post Holdings, Inc.

Darling Ingredients, Inc.

The Hershey Co.

International Flavors & Fragrances, Inc.

Lamb Weston Holdings, Inc.

Why is Ingredion, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 4.40%

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

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 -26.96%, its profits have fallen by -3.5%

Below par performance in long term as well as near term

Along with generating -26.96% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ingredion, Inc. should be less than 10%
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.

-27.55%

-0.29

19.40%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.40%

EBIT Growth (5y)

11.37%

EBIT to Interest (avg)

15.08

Debt to EBITDA (avg)

1.61

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.36

Tax Ratio

31.13%

Dividend Payout Ratio

32.53%

Pledged Shares

Institutional Holding

97.96%

ROCE (avg)

17.66%

ROE (avg)

17.80%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.62

EV to EBIT

9.85

EV to EBITDA

8.29

EV to Capital Employed

2.31

EV to Sales

1.54

PEG Ratio

Dividend Yield

151.36%

ROCE (Latest)

23.50%

ROE (Latest)

18.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 21.9 %

DIVIDEND PER SHARE(HY)

Highest at USD 5.53

RAW MATERIAL COST(Y)

Fallen by 1.88% (YoY

CASH AND EQV(HY)

Highest at USD 1,714 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.37 times

NET PROFIT(Q)

Highest at USD 208.23 MM

-8What is not working for the Company

ROCE(HY)

Lowest at 17.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,758.33

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.53 times

INTEREST(Q)

Highest at USD 12 MM

Here's what is working for Ingredion, Inc.

Debt-Equity Ratio

Lowest at 21.9 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 5.53 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Profit

Highest at USD 208.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 1,714 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.88% (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 12 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 2,758.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 12 MM

in the last five periods and Increased by 33.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 5.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio