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1. Company Snapshot

1.a. Company Description

Ingredion Incorporated, together with its subsidiaries, produces and sells starches and sweeteners for various industries.It operates through four segments: North America; South America; Asia-Pacific; and Europe, Middle East and Africa.The company offers sweetener products comprising glucose syrups, high maltose syrups, high fructose corn syrups, caramel colors, dextrose, polyols, maltodextrins, and glucose syrup solids, as well as food-grade and industrial starches, biomaterials, and nutrition ingredients.


It also provides edible corn oil; refined corn oil to packers of cooking oil and to producers of margarine, salad dressings, shortening, mayonnaise, and other foods; and corn gluten feed used as protein feed for chickens, pet food, and aquaculture, as well as fruit and vegetable products, such as concentrates, purees and essences, pulse proteins, and hydrocolloids systems and blends.The company's products are derived primarily from processing corn and other starch-based materials, such as tapioca, potato, and rice.It serves food, beverage, brewing, and animal nutrition industries.


The company was formerly known as Corn Products International, Inc.and changed its name to Ingredion Incorporated in June 2012.Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.

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1.b. Last Insights on INGR

Ingredion Incorporated's recent performance has been positively driven by increased institutional investor confidence. Cooke & Bieler LP raised its holdings by 16.0%, while Boston Trust Walden Corp boosted its stake by 6,843.0% during the third quarter. Additionally, the company reported strong full-year 2025 results, with EPS of $11.18 and $11.13, and cash from operations of $944 million. A $435 million return to shareholders, including $224 million in share repurchases, also underscores the company's commitment to shareholder value.

1.c. Company Highlights

2. Ingredion's Q4 and Full-Year 2025 Earnings: A Resilient Performance

Ingredion reported a mixed bag of results for Q4 2025, with net sales declining 2% to $1.8 billion, while gross margin slightly decreased to 24.5%. For the full year, the company delivered $7.2 billion in net sales, down 3% versus the prior year, but achieved a record gross profit and expanded margins to over 25%. The company's EPS for the quarter came in at $2.53, slightly below analyst estimates of $2.59. Despite operational challenges, Ingredion's Texture and Healthful Solutions segment posted its seventh consecutive quarter of volume growth, up 4%, driven by clean label ingredients and solutions.

Publication Date: Feb -08

📋 Highlights
  • Record Full-Year Operating Income & EPS Growth:: Delivered $1.016 billion reported operating income, up from prior year, with EPS growth driven by Texture/Healthful Solutions and LatAm Food & Industrial segments.
  • Cost2Compete Savings Exceed Target:: Achieved $59 million in annualized cost savings, surpassing the $50 million goal, contributing to 25.3% gross margin expansion for the year.
  • Texture & Healthful Solutions Volume Growth:: Notched 4% volume increase for the seventh consecutive quarter, with operating income up 16% and margin expansion to 16.9% (200 bps improvement).
  • Argo Facility Impact Mitigation:: Operational issues at the US/Canada Argo site caused a $40 million 2025 drag, with $20 million recovery expected in 2026’s second half.

Segmental Performance

The Texture and Healthful Solutions segment was a bright spot, with net sales up 1% and operating income up 16% for the full year, resulting in a higher operating income margin of 16.9%. In contrast, the Food and Industrial Ingredients U.S./Canada segment faced headwinds, with a 7% decrease in net sales volume due to operational issues at the Argo facility and industry volume demand softness. The Food and Industrial Ingredients LatAm segment saw some recovery in brewing adjunct volume demand, but continued to face challenges in the confectionery and paper and corrugating sectors.

Outlook and Guidance

Ingredion expects net sales to grow low single digits to mid-single digits in 2026, driven by greater volume demand. The company anticipates reported and adjusted operating income to be up low single digits for the full year 2026. For the U.S./Canada segment, net sales are expected to be flat year-over-year, and operating income is projected to be flat. The company is confident in its solutions business, which has higher margins and accounts for about 40% of the Texture & Healthful Solutions segment's revenue.

Valuation and Metrics

With a P/E Ratio of 11.72 and an EV/EBITDA of 7.25, Ingredion's valuation appears reasonable. The company's Return on Equity (ROE) stands at 16.1%, indicating a strong ability to generate profits from shareholder equity. The Net Debt / EBITDA ratio is 0.75, suggesting a manageable debt burden. Analysts estimate revenue growth at 2.5% for the next year, which is slightly lower than the company's guidance.

3. NewsRoom

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Ingredion: Defensive, High-Yield, Undervalued, And Transforming For Growth

Feb -08

Source: seekingalpha.com

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Ingredion Incorporated (INGR) Q4 2025 Earnings Call Transcript

Feb -03

Source: seekingalpha.com

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Ingredion Q4: Poised For Lackluster First Half, But It Is Getting Interesting

Feb -03

Source: seekingalpha.com

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Ingredion (INGR) Misses Q4 Earnings and Revenue Estimates

Feb -03

Source: zacks.com

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Ingredion Incorporated Reports 2025 Fourth Quarter and Full-Year Results

Feb -03

Source: globenewswire.com

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Ingredion Incorporated $INGR Stake Boosted by Cooke & Bieler LP

Jan -26

Source: defenseworld.net

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Ingredion Named Top Employer in Eight Countries

Jan -22

Source: globenewswire.com

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Ingredion Named to FORTUNE World's Most Admired Companies List for 16th Time

Jan -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Starches and Sweeteners

Expected Growth: 1.0%

Ingredion's Starches and Sweeteners segment growth is driven by increasing demand for clean label and plant-based products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in specialty starches and sweeteners, such as tapioca and rice-based products, contributes to its 1.0% growth.

7. Detailed Products

Starches

Ingredion's starches are derived from corn, tapioca, potato, and rice, and are used as thickeners, stabilizers, and emulsifiers in food products.

Sweeteners

Ingredion's sweeteners include sugar, high-fructose corn syrup, and specialty sweeteners like stevia and erythritol.

Flavor Systems

Ingredion's flavor systems include natural and artificial flavors, flavor enhancers, and seasonings.

Texture and Stability Systems

Ingredion's texture and stability systems include emulsifiers, stabilizers, and thickeners.

Biomaterials

Ingredion's biomaterials include biodegradable polymers and composites used in packaging, disposable cutlery, and other applications.

Animal Nutrition

Ingredion's animal nutrition products include specialty ingredients for poultry, swine, and ruminant nutrition.

8. Ingredion Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Ingredion Incorporated faces moderate threat from substitutes due to the availability of alternative sweeteners and starches in the market.

Bargaining Power Of Customers

Ingredion Incorporated's customers, including food and beverage manufacturers, have significant bargaining power due to their large scale of operations and ability to switch suppliers.

Bargaining Power Of Suppliers

Ingredion Incorporated has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company's large scale of operations also gives it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the specialty ingredients industry.

Intensity Of Rivalry

The specialty ingredients industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.85%
Debt Cost 6.71%
Equity Weight 62.15%
Equity Cost 7.99%
WACC 7.51%
Leverage 60.90%

11. Quality Control: Ingredion Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

118.72$

Current Price

118.72$

Potential

-0.00%

Expected Cash-Flows