Entering text into the input field will update the search result below

Ingredion Is Beginning To Feel Inflation

May 04, 2021 1:38 PM ETIngredion Incorporated (INGR)4 Comments


  • As far as equities go in an increasingly inflationary environment, Ingredion is a pretty good pick.
  • However, inflation in corn prices is stymieing their upside.
  • Hedging policies will allow them to pass through costs safely with little friction, and the reopening will help them, but we are not seeing too much reason to add.

Tattooed caucasian barman pouring beer while standing in pub.
Photo by millann/iStock via Getty Images

Reopening, especially in Latin markets, will be critical for Ingredion (NYSE:INGR) to achieve its recovery. We still believe in this recovery, but the Q1 2021 earnings call is beginning to help us notice that inflation

This article was written by

Formerly Bocconi's Valkyrie Trading Society, seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. We are not investment advisors. Consult an investment professional and take care to do your own due diligence.

DISCLOSURE: Some of Valkyrie's former and/or current members also have contributed individually or through shared accounts on Seeking Alpha. Currently: Guney Kaya contributes on his own now, and members have contributed on Mare Evidence Lab.

Analyst’s Disclosure: I am/we are long INGR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (4)

T'pee profile picture
Thanks for your insights here, good to take notice. A section of my portfolio is reserved for a 'check again in 10 years' approach, this is one of them, hard to imagine a structural decline in demand for these ingredients. Boring and well run, I like that.
BM Cashflow Detective profile picture
Thanks for your perspective on $INGR

Over the past few days, analysts have lowered their estimates to an average of $1.35 earnings per share (down from $1.66 previously).

However, this does not seem to have had a significant impact on the share price, since the share has recently performed well (since January 1st, 19.41%).

I have a sufficiently large position here and have recently been very satisfied with the price development.

The current Blended P / OCF 8.69 shows an undervaluation compared to the 4 year fair value of Normal P / OCF 10.19. After that, a current margin of safety 14.72%.

The analysts estimated an OCF growth of 3.94% by the end of 2023.

Thereafter, a return to the fair value normal P / OCF 10.19 would bring an average total return of 14.7%.

"The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go."
- Benjamin Graham
@Valkyrie Trading Society , excellent write up on Ingredion, and I agree with your thesis that INGR is a hold at this time. I would love to add to my position, but not at the current price in the mid-$90s and with corn prices rising.
Valkyrie Trading Society profile picture
@Class M Planet yeah rather agreed there, let's see what happens
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.