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What’s the Latest News on Ingredion?

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Jan. 5 2017, Updated 7:36 a.m. ET

Price movement

Ingredion (INGR) has a market cap of $9.1 billion. It rose 0.34% to close at $125.38 per share on January 3, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.01%, 7.2%, and 0.34%, respectively, on the same day.

INGR is trading 1.3% above its 20-day moving average, 1.1% above its 50-day moving average, and 1.5% above its 200-day moving average.

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Related ETF and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.38% of its holdings in Ingredion. The YTD price movement of FSTA was 0.38% on January 3.

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

  • Archer Daniels Midland (ADM) — $26.4 billion
  • Bunge Limited (BG) — $10.2 billion

Latest news on Ingredion

In a press release on January 3, 2017, Ingredion reported, “Ingredion Incorporated (INGR), a leading global provider of ingredient solutions to diversified industries, announced that it has successfully completed the acquisition of TIC Gums Incorporated, a US-based company that provides advanced texture systems to the food and beverage industry.”

The release added, “Ingredion funded the $400 million cash transaction with available cash and short-term credit. Excluding one-time costs, the transaction is expected to be $0.04-$0.05 accretive to adjusted EPS in the first year.”

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Ingredion’s performance in 3Q16

Ingredion (INGR) reported 3Q16 net sales of $1.5 billion, which represents a rise of 3.6%, compared to $1.4 billion in 3Q15. The company’s gross profit margin and operating margin rose 180 basis points and 270 basis points, respectively, in 3Q16 YoY (year-over-year).

Its net income and EPS (earnings per share) rose to $143.4 million and $1.93, respectively, in 3Q16, compared to $107.9 million and $1.48, respectively, in 3Q15. It reported adjusted EPS of $1.96 in 3Q16, which represents a YoY rise of 19.5%. INGR’s cash and cash equivalents and inventories rose 73.0% and 2.9%, respectively, between 4Q15 and 3Q16.

Projections

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

  • adjusted EPS of $6.95–$7.10
  • adjusted effective tax rate of 30.0%–32.0%
  • cash generated by operations of $725.0 million–$775.0 million
  • capital expenditure of ~$300.0 million

In the final part of this series, we’ll discuss VF Corporation (VFC).

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