Ingredion: With A High Gross Profit Margin And Debt Reduction, Is It Undervalued?

Summary

• Ingredion has increased its gross profit margin due to the production of goods that are sold at higher prices, which adds more functionality and value to its clients.
• The DCF model implemented in this article suggests that the company's stock price is $163.52, yielding an undervaluation of 18.77%.
• Ingredion has experienced a decline in its liabilities-to-assets ratio, dropping to 45.80% in Q1 2025.
• The global cornstarch and corn sweetener markets expect excellent outlooks for the upcoming years.

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Investment Thesis

I rate Ingredion (INGR) with a Buy rating. The company has been successful in its strategy to manufacture products with higher added value and more functionalities. These products have higher selling prices and profit margins. Due to this

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.