Ingredion manufactures and sells starches and sweeteners to various industries. It offers sweetener products comprising glucose syrups, high maltose syrups, high fructose corn syrups, caramel colors, dextrose, polyols, maltodextrins and glucose, and syrup solids, as well as food-grade and industrial starches. The company was founded in 1906 and is based in Westchester, Illinois.
INGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ingredion Inc. To summarize, we found that Ingredion Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Ingredion Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.72 years, is -0.02% -- higher than only 22.13% of stocks in our DCF forecasting set.
Ingredion Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 7.7% of tickers in our DCF set.
As a business, Ingredion Inc experienced a tax rate of about 22% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 85.93% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as INGR, try COST, CHD, MDLZ, BUD, and K.
Ingredion has launched new Novation Indulge 3620 and 3820 starches to meet consumersâ demand for clean and healthy eating while providing sensory attributes like smoothness, creaminess and a rich mouthfeel.
Ingredion ([[INGR]] -8.8%) Q2 revenue was $1.35B (-13% Y/Y), decrease primarily driven by sales volume declines in North America and South America.Segment-wise net sales: North America $848M; South America $182M; Asia Pacific $187M; Europe, Middle-East, Africa $132M.Adjusted operating income was $127M (-29% Y/Y).Segment-wise operating income: North America -27%; South America -19%; Asia Pacific -4%; Europe, Middle-East,...