Price movement of Ingredion
Ingredion (INGR) rose by 0.36% to close at $106.73 per share at the end of the third week of March 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are 0.36%, 4.7%, and 11.4%, respectively.
Currently, INGR is trading 2.4% above its 20-day moving average, 8.1% above its 50-day moving average, and 17.3% above its 200-day moving average.
The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 3.2% of its holdings in Ingredion. The ETF tracks an index of large- and mid-cap US consumer staples stocks. The underlying index uses multifactor selection and tiered equal weighting. The YTD price movement of FXG is 3.4% as of March 17, 2016.
The PowerShares Dynamic Food & Beverage ETF (PBJ) invests 2.6% of its holdings in Ingredion. The ETF tracks a multifactor, tiered, equal-weighted index of US food industry stocks.
The competitors of Ingredion and their market capitalizations are as follows:
Ingredion declared a dividend
Ingredion has declared a quarterly dividend of $0.45 per share on its common stock. The dividend will be paid on April 25, 2016, to its shareholders on record at the close of business on March 31, 2016.
Performance of Ingredion in 4Q15 and 2015
Ingredion reported 4Q15 net sales of $1,404.7 million, a rise of 2.7% compared to net sales of $1,368.3 million in 4Q14. The company’s cost of sales as a percentage of net sales fell by 2.5%, and its gross profit rose by 15.0% in 4Q15 compared to 4Q14. Its net income and EPS (earnings per share) rose to $104.0 million and $1.42, respectively, in 4Q15, compared to $61.1 million and $0.83, respectively, in 4Q14.
In 2015, INGR reported net sales of $5,620.5 million, a fall of 0.84% YoY (year-over-year). Also, the company’s net income and EPS rose to $402.2 million and $5.51, respectively, in 2015, compared to $354.9 million and $4.74, respectively, in 4Q14.
Meanwhile, its cash and cash equivalents fell by 25.2%, and its inventories rose by 2.3% in 2015. Its current ratio fell to 2.6x, and its debt-to-equity ratio rose to 1.32x in 2015, compared to a current ratio and a debt-to-equity ratio of 3.0x and 1.30x, respectively, in 2014.
Ingredion’s price-to-earnings and price-to-book value ratios are 19.3x and 3.6x, respectively, as of March 18, 2016.
The company has made the following projections for 2016:
- adjusted EPS in the range of $6.20–$6.60, excluding acquisition-related and restructuring costs
- an effective tax rate of ~30%–32%
- cash generated by operations and capital expenditures of ~$700 million and $300 million, respectively