Ingredion Stock Analysis - Food Stock to Buy

Ingredion stock analysis and investment outlook:
Estimated EPS for 2019 is between .8 and .5
PE ratio of 13 for a company that expects to grow earnings by 8% over the next 4 years.
Earnings of in 2022
On a valuation between 12 and 17, price target 0 to 0!
13% yearly return if stock hits 0 somewhere in 2022.
2.7% dividend yield and 10% buyback yield with 7 million in repurchases in 2018.

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Ingredion Stock Analysis – Food Stock to Buy

| Green Roofs | 19 Comments
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19 Comments

  • Brayan Alonso

    Hello Sven. Are you still following Ingredion? Nice downward move, very attractive at these levels. Do you still think it could return 13% or more yearly? What do you think about Debt levels?

  • ay zee

    Nice coverage of INGR! Do you really believe in the future for processed foods? I know the numbers NOW look good… Interesting coincidence – I have a short position in LW. Should I cover soon?

  • Ivan Lopes

    Thanks for sharing another good content!
    Will you cover WATER stocks? I was remembering of that since Michael Burry came out again in the news. Have a nice week, Sven!

  • Mike Sharp

    Good stuff! I recommend your channel to everyone who will listen :). Aside from moral reasons, the general move in western society is towards more healthy products (even convenience products). So that might be a business headwind for them.

    You also mentioned spinoffs. Greenblatt swears by them, as many of the institutional shareholders of the spun-off company just dump the stock immediately, which depresses the price and often creates value opportunities. Also more focused management often helps the new standalone company unlock potential. I have watched a lot of spinoffs since reading Greenblatt's book and he seems right that about 2 years after spinoff, the company often starts hitting it's stride. Maybe after you are done with Food stocks, can i request that the next "sector" to anlayse could be spinoffs that happened over the last year? https://www.stockspinoffs.com/recent-spinoffs/ Thanks dude!

  • Scott's Critical Mass

    Sven – I've watched INGR for quite some time, but I've never purchased the stock. Not an apples-to-apples comparison, but all things being equal, I prefer IFF (international flavors & fragrance) in the space. I think IFF has larger barriers from competition, not commoditized like INGR and therefore is set up better for the long term. With that said, INGR looks quite a bit cheaper than IFF presently. I will keep both on my watch list, but have no plans on buying either anytime soon. Thanks as always for your video!

  • Stephan

    Could you please analyze and make a video about the business NetEnt AB (OTC ticker: NTNTY, Swedish ticker: NET B)? It's a leading supplier of games to casino operators. NetEnt has a very simple and scalable business model and has been growing at a CAGR of 27% over the past decade. It currently still enjoys a great tailwind of industry growth because of the major shift from land-based casino to online casino. The moat consist of switching costs, economies of scale & intangible assets such as copyrights on their games. The crazy part is that the stock only trades at a PE of 14. There are some concerns regarding regulation in Sweden but they've gone through this process many times in the past and it always had only short-term implications on revenue growth. Thanks for the great content!

  • Edoardo Resta

    Ciao Sven
    i know you are Researching food stocks at the Moment and you don’t like pharma so much..
    But could you make an overview and quick take from the company celgene in your Platform??

  • e z

    No offence but saying this is a good business because it's food and you have to eat it really …let's say naïve…….and it is pretty clear looking at past performance (no top line grow and market multiple at 13PE) that it can not get you double digit returns by dividends+buyback…The idea that it will grow 8% eps is just speculation that the management gave and that in the video you didn't back up by any logical consideration…

  • Khalid Almoulani

    Sven I have looked at their cash and cash equivalents for 2018 it was 327 million and current liabilities are 946 current and 1,931 long term… isnt that considered risky?