Cahaba Research
Value, growth at reasonable price, long-term horizon

The Long Case For Ingredion, Inc.

Investment Summary

I believe that Ingredion, Inc. (NYSE:INGR) is undervalued due to the current pressures in its South American operation and the market's lack of appreciation for the Company's product mix transition to higher margin, more valued-added specialty food ingredients. I believe the Company is worth $80 in 12 months' time (14x P/E and 8x EV/EBITDA for 2014) and shares will re-rate in late 2013 and 2014 as current headwinds are reversed or mitigated and the potential growth in operating income from the Company's capital projects becomes more evident.

Part of the markets' difficulty in valuing Ingredion has been the lack of appropriate domestic comparable companies. Ingredion, formerly Corn Products International (CPO), has traditionally been considered a global...

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