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
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.
-16.3%
-0.18
19.59%
S&P 500
17.78%
0.70
20.15%
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%
Valuation Key Factors 
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%
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
Technical Movement
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 yearsMOJO 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 periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 4.43 times
in the last five Semi-Annual periodsMOJO 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 periodsMOJO 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 yearsMOJO 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 periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 306 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 17.42 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Dividend Payout Ratio
Lowest at 32%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






