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Ingredion (INGR)
NYSE:INGR
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Ingredion
(NYSE:INGR)
81Outperform
Positive Factors
Balance Sheet and M&A
Strong balance sheet should support earnings growth via M&A and upside to share repurchase expectations.
Earnings Guidance
Management has raised its adjusted EPS guidance by approximately 5% following solid 3Q results, supporting an increase in the price target.
Operational Efficiency
The company's new approach to pricing, better manufacturing spending, and improved raw material procurement have led to expanded gross margins.
Negative Factors
Sales Decline
Despite decreases in sales, the company started the year with solid outperformance on profitability and expanding margins.
Valuation Concerns
Market Perform rating is reiterated owing to valuation sensitivity.
Valuation Sensitivity
Reiterate Market Perform owing to valuation sensitivity, though constructive on INGR’s outlook supported by ongoing volume recovery, lower corn prices, internal cost savings, organic growth projects, and ample cash for buybacks and M&A.
Ingredion (INGR) vs. S&P 500 (SPY)
Market Cap
$9.06B
Dividend Yield2.26%
Average Volume (3M)498.39K
Price to Earnings (P/E)14.9
Beta (1Y)0.37
Revenue Growth-6.88%
EPS Growth-4.93%
CountryUS
Employees11,000
SectorConsumer Defensive
Sector Strength71
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.97
Shares Outstanding64,311,010
10 Day Avg. Volume516,236
30 Day Avg. Volume498,391
Financial Highlights & Ratios
PEG Ratio-2.59
Price to Book (P/B)2.29
Price to Sales (P/S)0.00
P/FCF Ratio7.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$152.75Price Target Upside8.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Ingredion Business Overview & Revenue Model
Company DescriptionIngredion 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 Europe, Middle East and Africa. The company offers sweetener products comprising glucose syrups, high maltose syrups, high fructose corn syrups, caramel colors, dextrose, polyols, maltodextrins, and glucose syrup solids, as well as food-grade and industrial starches, biomaterials, and nutrition ingredients. It also provides edible corn oil; refined corn oil to packers of cooking oil and to producers of margarine, salad dressings, shortening, mayonnaise, and other foods; and corn gluten feed used as protein feed for chickens, pet food, and aquaculture, as well as fruit and vegetable products, such as concentrates, purees and essences, pulse proteins, and hydrocolloids systems and blends. The company's products are derived primarily from processing corn and other starch-based materials, such as tapioca, potato, and rice. It serves food, beverage, brewing, and animal nutrition industries. The company was formerly known as Corn Products International, Inc. and changed its name to Ingredion Incorporated in June 2012. Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.
How the Company Makes MoneyIngredion makes money by manufacturing and selling a wide range of ingredient solutions, including starches, sweeteners, and nutritional ingredients. The company's revenue primarily comes from supplying these ingredients to industries like food and beverage, where they are used to improve product quality, taste, and shelf life. Ingredion's revenue streams are diversified across its various product lines and geographic regions, ensuring a broad customer base. Key partnerships with major food and beverage manufacturers and a focus on R&D for innovative solutions also contribute to its earnings by fostering long-term customer relationships and expanding product offerings.
Ingredion Financial Statement Overview
Summary
Ingredion exhibits strong profitability and cash flow generation. The company effectively manages leverage and maintains a stable equity position. Despite a recent revenue decline, operational efficiency and cash flow strength position it well for resilience.Income Statement
Ingredion's income statement indicates strong profitability with a consistent gross profit margin and net profit margin over the years. However, a noticeable decline in revenue from 2023 to 2024 suggests potential challenges in maintaining growth. The company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a solid equity base with an improving equity ratio, showcasing financial stability. The debt-to-equity ratio has decreased, indicating better leverage management. However, the overall asset growth is modest, which may impact future expansion opportunities.72
Positive
Cash Flow
The cash flow statement demonstrates robust operating cash flow, significantly exceeding net income, which indicates strong cash generation ability. Free cash flow has seen substantial growth, enhancing financial flexibility. However, fluctuations in investing and financing cash flows suggest potential variability in capital allocation.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.43B | 8.16B | 7.95B | 6.89B | 5.99B | Gross Profit |
| 1.79B | 1.75B | 1.49B | 1.33B | 1.27B | EBIT |
| 883.00M | 957.00M | 762.00M | 709.00M | 582.00M | EBITDA |
| 1.18B | 1.17B | 978.00M | 543.00M | 801.00M | Net Income Common Stockholders |
| 647.00M | 643.00M | 492.00M | 117.00M | 348.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.01B | 409.00M | 239.00M | 332.00M | 665.00M | Total Assets |
| 7.44B | 7.64B | 7.56B | 7.00B | 6.86B | Total Debt |
| 1.83B | 2.40B | 2.48B | 2.05B | 2.32B | Net Debt |
| 834.00M | 2.00B | 2.25B | 1.72B | 1.66B | Total Liabilities |
| 3.55B | 4.05B | 4.30B | 3.77B | 3.79B | Stockholders Equity |
| 3.80B | 3.54B | 3.19B | 3.14B | 2.98B |
| Cash Flow | Free Cash Flow | |||
| 1.44B | 741.00M | -148.00M | 92.00M | 496.00M | Operating Cash Flow |
| 1.44B | 1.06B | 152.00M | 392.00M | 829.00M | Investing Cash Flow |
| -47.00M | -329.00M | -320.00M | -335.00M | -571.00M | Financing Cash Flow |
| -765.00M | -569.00M | 103.00M | -373.00M | 143.00M |
Ingredion Technical Analysis
Positive
140.81
Price Trends
132.47
Positive
132.08
Positive
133.72
Positive
Market Momentum
2.12
Negative
64.99
Neutral
71.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INGR, the sentiment is Positive. The current price of 140.81 is above the 20-day moving average (MA) of 134.06, above the 50-day MA of 132.47, and above the 200-day MA of 133.72, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 71.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INGR.
Ingredion Risk Analysis
Ingredion disclosed 25 risk factors in its most recent earnings report. Ingredion reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingredion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.06B | 14.86 | 16.31% | 2.26% | -6.88% | -4.93% | |
75 Outperform | $5.58B | 33.23 | 3.79% | ― | -11.02% | -68.34% | |
74 Outperform | $6.12B | 8.64 | 23.47% | 2.42% | 3.82% | ― | |
67 Neutral | $6.23B | 20.16 | 9.15% | ― | 1.48% | 9.36% | |
66 Neutral | $10.59B | 20.46 | 13.43% | 4.28% | 9.15% | -31.94% | |
64 Neutral | $8.77B | 14.68 | 4.78% | 173.90% | 3.25% | 2.18% | |
58 Neutral | $2.27B | 29.93 | 8.20% | 2.64% | 0.49% | -12.32% |
* Consumer Defensive Sector Average
Performance Comparison
INGR
Ingredion
140.81
25.43
22.04%
BRFS
BRF SA
3.61
-0.18
-4.75%
CPB
Campbell Soup
35.52
-9.25
-20.66%
DAR
Darling Ingredients
35.25
-7.77
-18.06%
JJSF
J & J Snack Foods
116.50
-43.59
-27.23%
POST
Post Holdings
111.75
6.86
6.54%
Ingredion Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 5.37%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in key segments and accolades, despite challenges in net sales and trade uncertainty.Q1-2025 Updates
Positive Updates
Significant EPS and Operating Income Growth
Ingredion achieved significant double-digit adjusted EPS and operating income growth, driven by strong sales volume growth in Texture and Healthful Solutions and operational execution.
Texture and Healthful Solutions Performance
The Texture and Healthful Solutions segment delivered a robust 34% increase in operating income, driven by strong sales volume across all geographies and solutions for clean label and affordable formulations.
Strong Performance in LATAM and U.S./Canada Segments
LATAM's double-digit operating income growth was driven by the stability of the Argentine peso, favorable market mix, and lower costs, while the U.S./Canada segment exceeded expectations with a 26% year-over-year increase in operating income.
Gross Margin Expansion
Gross profit dollars grew 12% with margins up 350 basis points to 25.7%, reflecting effective contracting and cost management.
Recognition and Awards
Ingredion was named to Fortune’s World’s Most Admired Companies and Ethisphere's World’s Most Ethical Companies, highlighting its commitment to excellence, integrity, and sustainability.
Negative Updates
Net Sales Decline
Net sales for the first quarter were $1.8 billion, down 4% versus the prior year, primarily driven by lower price/mix and foreign exchange impacts.
LATAM Segment Volume Decline
In the LATAM segment, net sales volumes were down 2% in the quarter, mainly due to soft volumes in brewing.
Soft Sales in U.S./Canada Specialty Starches
In the U.S./Canada segment, strong volumes for brewing were offset by soft sales of specialty starches for papermaking and packaging.
Impact of Tariffs and Trade Uncertainty
Tariffs announced and effective as of the end of April had little impact in the first quarter but are expected to have an impact on future business, creating uncertainty.
Company Guidance
During Ingredion's first quarter 2025 earnings call, the company reported impressive financial performance, including a 26% year-over-year increase in operating income and a 29% rise excluding foreign exchange impacts. The Texture and Healthful Solutions segment saw a 34% increase in operating income, driven by a 7% sales volume growth across all geographies. Despite a 4% decrease in net sales to $1.8 billion, gross profits grew 12%, with gross margins expanding by 350 basis points to 25.7%. The LATAM segment achieved a 26% increase in operating income due to the stability of the Argentine peso and favorable market conditions, while the U.S./Canada segment showed resilience with a 17.7% operating income margin. The company remains optimistic but cautious, projecting an adjusted EPS range of $10.90 to $11.60 for 2025. Key strategic initiatives include a $50 million investment in the Cedar Rapids facility to expand specialty industrial starch capacity and ongoing efforts to achieve $50 million in run-rate savings by the end of 2025.Ingredion Corporate Events
Business Operations and Strategy
Ingredion Unveils Strategies at 2024 Texture Innovation Day
Neutral
Nov 14, 2024
Ingredion Incorporated is set to showcase its upcoming 2024 Texture Innovation Day, where senior executives will present potential growth strategies. While these presentations may include forward-looking statements about future outcomes, they come with inherent risks and uncertainties. Investors should be aware that actual results could vary significantly from current expectations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.