Ingredion Inc (INGR) stock analysis

P/E below its 5-year median

Ingredion's P/E of 10.6 is below its own 5-year median of 12.6.

P/E below the industry

Ingredion's P/E of 10.6 is below the Food and Kindred Products median of 21.0.

EV/EBITDA below its 5-year median

Ingredion's EV/EBITDA of 6.4 is below its 5-year median of 8.5.

P/B below the industry

Ingredion's price-to-book of 1.29 is below the Food and Kindred Products median of 2.12.

Trading below fair value

The share price of $92.83 is below our fair value estimate of $162.46.

Margin of safety over 20%

The price is 42.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 15.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -14.6% over the last twelve months, against a 5-year average of 15.9% a year.

Growing slower than the industry

Revenue grew -1.0% over the last twelve months; the Food and Kindred Products median is 2.7%.

Guidance lowered

Ingredion lowered its full year 2026 Cash from operations outlook on Aug 4, 2026.

Gross margin slipping

Gross margin was 23.0% over the last twelve months, against 25.4% a year earlier.

Return on equity under 15%

Return on equity was 12.8% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Ingredion's return on equity of 12.8% is above the Food and Kindred Products median of 6.6%.

Earnings grew over 5 years

Net income grew 15.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.8% over the last twelve months, against a 5-year average of 6.9%.

Net margin above the industry

Ingredion's net margin of 7.8% is above the Food and Kindred Products median of 2.7%.

Low debt

Debt is 39.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 74.1% five years ago to 39.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 44.7% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.01 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ingredion paid dividends worth 3.5% of the share price over the last twelve months.

Yield below Treasuries

The 3.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ingredion yields 3.5%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 37.7% of net income.

Covered by free cash flow

Dividends take 61.1% of free cash flow.