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Ingredion Has Declared a Quarterly Dividend

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Price movement

Ingredion (INGR) rose 0.32% to close at $129.28 per share during the third week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.32%, -5.3%, and 36.0%, respectively, as of September 23, 2016.

INGR is trading 3.9% below its 20-day moving average, 3.8% below its 50-day moving average, and 13.2% above its 200-day moving average.

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Related ETFs and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.38% of its holdings in Ingredion. The ETF tracks a market-cap-weighted index of stocks in the US consumer staples sector. The YTD price movement of FSTA was 7.0% on September 23, 2016.

The SPDR S&P 400 Mid Cap Growth ETF (MDYG) invests 0.59% of its holdings in Ingredion. The ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400.

The market caps of Ingredion’s competitors are as follows:

  • Archer-Daniels Midland (ADM): $24.9 billion
  • Bunge (BG): $8.3 billion

Latest news on Ingredion

Ingredion has declared a quarterly dividend of $0.50 per share on its common stock. The dividend will be paid on October 25, 2016, to shareholders of record at the close of business on October 3, 2016.

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Performance in 2Q16

Ingredion reported 2Q16 net sales of $1.46 billion, a rise of 0.44% over $1.45 billion in 2Q15. Sales for the North America and EMEA (Europe, the Middle East, and Africa) regions rose 3.0% and 1.7%, respectively.

Sales for the South America and Asia-Pacific regions fell 4.0% and 6.1%, respectively, between 2Q15 and 2Q16. The company’s gross profit margin and operating income rose 10.8% and 14.6%, respectively. It reported a restructuring charge of $13.0 million in 2Q16.

Its net income and EPS (earnings per share) rose to $117.2 million and $1.58, respectively, in 2Q16 compared to $106.7 million and $1.47, respectively, in 2Q15. It reported adjusted EPS of $1.73 in 2Q16, a rise of 13.1% from 2Q15.

Ingredion’s cash and cash equivalents and inventories rose 12.2% and 6.7%, respectively, between 4Q15 and 2Q16. Its current ratio rose to 3.1x, and its debt-to-equity ratio fell to 1.2x in 2Q16, compared to 2.6x and 1.3x, respectively, in 4Q15.

Projections

Ingredion (INGR) made the following projections for fiscal 2016:

  • adjusted EPS of $6.70–$6.90, which excludes acquisition-related and integration costs and impairment and restructuring costs
  • effective tax rate of 30%–32%
  • cash generated from operations of $725 million–$775 million
  • capital expenditure of $300 million

In the next part, we’ll take a look at WhiteWave Foods (WWAV).

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