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Ingredion (NYSE:INGR) has the makings of a profitable enterprise within the plant-based meals market. INGR inventory is fairly priced, and traders can maintain their shares and acquire dividend distributions.
Plus, Ingredion’s just lately reported outcomes show progress even throughout a time of excessive inflation.
Based mostly in Illinois, Ingredion is a supplier of wholesome ingredient options. The corporate caters to the “meals, beverage, animal vitamin, brewing
and industrial markets.”
Ingredion appears to be working in the correct enterprise area of interest on the proper time. It’s been estimated that the plant-based meat market’s worth will speed up to $15.7 billion by 2027. So, there could also be strong returns within the coming years for Ingredion’s early stakeholders.
INGR Inventory Appears to be like Like a Good Worth
In contrast to another shares, INGR inventory really posted a achieve over the previous yr. That’s a powerful feat, as rising rates of interest and recession fears weighed on the equities market in 2022.
Furthermore, Ingredion’s shareholders can get a superb worth, in keeping with a number of generally cited metrics. Initially, Ingredion has a price-to-earnings (P/E) ratio (all of those metrics consult with the trailing 12 months) of 13.9x, which is kind of affordable.
Additionally, Ingredion’s price-to-book (P/B) ratio of two.04x (2x or much less usually signifies a robust worth) and price-to-sales (P/S) ratio of 0.82x (under 3x is usually most popular) recommend that INGR inventory isn’t overpriced in any respect. In the meantime, income-focused traders needs to be glad to know that Ingredion’s shareholders can acquire an annual dividend yield of two.68%.
Ingredion Capped Off 2022 with Sturdy Fiscal Outcomes
Ingredion is a well known wholesome elements supplier with over 19,000 prospects throughout 120 international locations worldwide. However, like different companies, Ingredion needed to take care of elevated inflation in late 2022. So, how did the corporate fare throughout this difficult time?
Because it seems, Ingredion delivered sturdy monetary outcomes throughout 2022’s fourth quarter. Beginning with the highest line, Ingredion’s web gross sales elevated 17% year-over-year in North America, 13% in South America, 5% within the Asia-Pacific area and seven% within the Europe, Center East and Africa (EMEA) area.
Turning to the highest line, Ingredion reported This fall 2022 adjusted earnings per share (EPS) of $1.65. This end result exceeded the analyst consensus estimate of $1.45, whereas additionally demonstrating enchancment over the year-earlier quarter’s EPS of $1.09.
And by the best way, Ingredion returned a powerful $288 million to its shareholders in 2022 and elevated its dividend price by 9% throughout that yr. It’s actually a superb signal that Ingredion respects its loyal traders, and the corporate’s dividend appears protected in gentle of Ingredion’s agency fiscal figures.
What You Can Do Now
So, now you’ve an arsenal of need-to-know information about Ingredion. Granted, not everybody shall be fascinated by gaining publicity to the plant-based meals trade, so INGR inventory isn’t on the “A” stage.
Nonetheless, the inventory does get a assured “B” ranking as a result of Ingredion confirmed income and earnings progress throughout robust financial instances. Subsequently, should you’re searching for potential earnings within the plant-based elements market, Ingredion deserves a outstanding place in your watch checklist.
On the date of publication, neither Louis Navellier nor the InvestorPlace Analysis Workers member primarily liable for this text held (both straight or not directly) any positions within the securities talked about on this article.
