Company DescriptionInghams Group Limited, together with its subsidiaries, produces and sells chicken and turkey products in Australia and New Zealand. The company provides fresh, fresh with flavor, frozen, gluten free, and ready to cook chicken and turkey products under the Ingham's brand name. It also offers stock feeds for poultry and pig industries. The company was founded in 1918 and is based in North Ryde, Australia.

How the Company Makes Money

Inghams Group Ltd. Financial Statement Overview

Summary

Inghams Group Ltd. shows solid revenue growth and operational efficiency, though profitability margins indicate room for improvement. The balance sheet displays a high leverage risk, which could affect financial stability. Cash flows are generally strong, with good operational cash generation, but there is a slight decline in free cash flow. Continued focus on improving profitability and managing leverage will be crucial for sustainable growth.

Income Statement

Very Positive

Inghams Group Ltd. demonstrated strong revenue growth of 7.17% from the previous year, indicating robust demand in the consumer foods sector. The gross profit margin improved to 19.03%, reflecting better cost management. However, the net profit margin at 3.11% suggests pressure on overall profitability due to high operational costs. The EBIT margin of 5.15% and EBITDA margin of 7.11% show stable operational efficiency but leave room for improvement in profitability.

Balance Sheet

Positive

The company's debt-to-equity ratio is high at 7.27, indicating significant leverage which poses potential financial risk. Despite this, the return on equity (ROE) of 46.21% reflects strong profitability for equity holders. The equity ratio of 9.15% is low, suggesting limited financial cushioning against liabilities. Overall, the balance sheet shows a need for better equity strengthening and debt management.

Cash Flow

Positive

The free cash flow growth rate is slightly negative, indicating a minor decline compared to the previous year, but the free cash flow to net income ratio is favorable at 2.53, signifying good cash generation relative to profits. The operating cash flow to net income ratio is high at 4.12, reflecting strong cash flow from operations. While the cash flow is generally robust, the decline in free cash flow warrants attention.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
3.23B	3.26B	3.04B	2.71B	2.67B	2.56B
	Gross Profit
591.60M	620.90M	511.30M	405.50M	486.80M	433.40M
	EBIT
204.00M	168.10M	147.70M	99.00M	178.30M	123.60M
	EBITDA
261.70M	232.00M	420.90M	370.20M	393.50M	389.60M
	Net Income Common Stockholders
89.60M	101.50M	60.40M	35.10M	83.30M	40.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
169.20M	110.70M	136.30M	131.60M	158.10M	134.20M
	Total Assets
2.37B	2.40B	2.57B	2.54B	2.54B	2.57B
	Total Debt
1.65B	1.60B	1.90B	1.94B	1.94B	1.92B
	Net Debt
1.49B	1.49B	1.76B	1.81B	1.78B	1.79B
	Total Liabilities
2.13B	2.18B	2.37B	2.38B	2.38B	2.44B
	Stockholders Equity
238.70M	219.60M	201.80M	158.20M	163.60M	129.10M
Cash Flow		Free Cash Flow
297.10M	256.80M	259.70M	267.60M	360.90M	243.10M
	Operating Cash Flow
382.90M	418.50M	331.60M	329.50M	427.20M	329.80M
	Investing Cash Flow
-112.60M	-164.10M	-68.40M	-58.10M	-55.60M	-77.20M
	Financing Cash Flow
-175.40M	-279.70M	-258.70M	-297.50M	-347.60M	-252.00M

Inghams Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IH1		€794.13M	14.42	38.76%	5.47%	―	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
ASAGF		$537.59M	24.83	-0.01%	―	―	―
FTZ		€664.11M	14.16	7.21%	6.35%	―	―
3GU		€1.84B	17.37	15.78%	4.65%	―	―
RFNDF		$458.14M	14.09	4.68%	6.64%	―	―
B6G		€978.19M	46.13	3.35%	1.93%	―	―

* Consumer Defensive Sector Average

Performance Comparison

DE:IH1

Inghams Group Ltd.

2.12

0.07

3.41%

ASAGF

Australian Agricultural Company

0.91

-0.05

-5.21%

DE:FTZ

Elders Limited

3.42

-1.34

-28.15%

DE:3GU

NIB Holdings Ltd

3.54

-0.75

-17.48%

RFNDF

Rural Funds Group

1.16

-0.10

-7.94%

DE:B6G

Bega Cheese Limited

3.16

0.61

23.92%

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.

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