Ingredion Stock Could Deliver Healthy Long-Term Returns

  • Ingredion (INGR) stock trades at a reasonable valuation according to multiple metrics, and the company pays a decent dividend.
  • Ingredion posted a quarterly earnings beat along with rising revenue.
  • Now is a good time to consider adding INGR stock to your watch list of consumer goods investments.
INGR stock - Ingredion Stock Could Deliver Healthy Long-Term Returns

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Ingredion (NYSE:INGR) has the makings of a successful business in the plant-based foods market. INGR stock is reasonably priced, and investors can hold their shares and collect dividend distributions.

Plus, Ingredion’s recently reported results demonstrate growth even during a time of high inflation.

Based in Illinois, Ingredion is a provider of healthy ingredient solutions. The company caters to the “food, beverage, animal nutrition, brewing
and industrial markets.”

Ingredion seems to be operating in the right business niche at the right time. It’s been estimated that the plant-based meat market’s value will accelerate to $15.7 billion by 2027. So, there may be robust returns in the coming years for Ingredion’s early stakeholders.

INGR Ingredion $99.73

INGR Stock Looks Like a Good Value

Unlike some other stocks, INGR stock actually posted a gain over the past year. That’s an impressive feat, as rising interest rates and recession fears weighed on the equities market in 2022.

Moreover, Ingredion’s shareholders can get a good value, according to several commonly cited metrics. First of all, Ingredion has a price-to-earnings (P/E) ratio (all of these metrics refer to the trailing 12 months) of 13.9x, which is quite reasonable.

Also, Ingredion’s price-to-book (P/B) ratio of 2.04x (2x or less typically indicates a strong value) and price-to-sales (P/S) ratio of 0.82x (below 3x is generally preferred) suggest that INGR stock isn’t overpriced at all. Meanwhile, income-focused investors should be glad to know that Ingredion’s shareholders can collect an annual dividend yield of 2.68%.

Ingredion Capped Off 2022 with Strong Fiscal Results

Ingredion is a well-known healthy ingredients provider with over 19,000 customers across 120 countries worldwide. On the other hand, like other businesses, Ingredion had to deal with elevated inflation in late 2022. So, how did the company fare during this challenging time?

As it turns out, Ingredion delivered strong financial results during 2022’s fourth quarter. Starting with the top line, Ingredion’s net sales increased 17% year-over-year in North America, 13% in South America, 5% in the Asia-Pacific region and 7% in the Europe, Middle East and Africa (EMEA) region.

Turning to the top line, Ingredion reported Q4 2022 adjusted earnings per share (EPS) of $1.65. This result exceeded the analyst consensus estimate of $1.45, while also demonstrating improvement over the year-earlier quarter’s EPS of $1.09.

And by the way, Ingredion returned an impressive $288 million to its shareholders in 2022 and increased its dividend rate by 9% during that year. It’s certainly a good sign that Ingredion respects its loyal investors, and the company’s dividend seems safe in light of Ingredion’s firm fiscal figures.

What You Can Do Now

So, now you have an arsenal of need-to-know data about Ingredion. Granted, not everyone will be interested in gaining exposure to the plant-based foods industry, so INGR stock isn’t at the “A” level.

However, the stock does get a confident “B” rating because Ingredion showed revenue and earnings growth during tough economic times. Therefore, if you’re seeking potential profits in the plant-based ingredients market, Ingredion deserves a prominent position on your watch list.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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