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 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 39.83%. As for the metrics that stood out in our discounted cash flow analysis of Ingredion Inc, consider:
The compound growth rate in the free cash flow of Ingredion Inc over the past 5.46 years is -0.04%; that's higher than merely 16.82% of free cash flow generating stocks in the Consumer Defensive sector.
Ingredion Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 6.24% of tickers in our DCF set.
INGR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 6.24% of tickers in our DCF set.
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 MKC, KMB, DAR, YEWB, and CLX.
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,...