Ingredion Incorporated (INGR): A Bull Case Theory 

We came across a bullish thesis on Ingredion Incorporated on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on INGR. Ingredion Incorporated’s share was trading at $107.68 as of December 2nd. INGR’s trailing and forward P/E were 10.78 and 9.51 respectively according to Yahoo Finance.

Ingredion Incorporated (NYSE: INGR) is a century-old food ingredients manufacturer serving multiple industries, including food, paper, textiles, and biomaterials, with products ranging from starches and sweeteners to plant-based proteins. Added to QVI’s Real-Time Stock Picks in October 2024 at a cost basis of $133.60, the company continues to represent a high-quality, dividend-paying small-cap in the consumer staples sector. Morningstar assigns Ingredion a narrow economic moat, citing its specialty ingredients business, which benefits from pricing power through intangible assets and customer switching costs.

The company’s value proposition lies in its transition from traditional corn-based products to higher-growth plant-based proteins and alternative sweeteners, aligning with evolving consumer preferences. Financially, Ingredion’s performance has been mixed—its five-year annualized revenue growth remains in the low single digits, with a 5.2% decline over the past year, underperforming the S&P 500. Despite this, it maintains solid profitability, with high-single-digit net margins supported by disciplined cost control, though still below the S&P 500’s benchmark levels.

In 2024, Ingredion demonstrated shareholder commitment by returning approximately $426 million through dividends and buybacks, including repurchasing 1.65 million shares. The company’s return on equity meets QVI’s targets, and its return on invested capital exceeds its weighted average cost of capital, signaling prudent capital allocation. Over the past five years, owners’ earnings—defined as EPS growth plus dividend growth—have shown mid-double-digit returns, consistent with a strong defensive profile, though free cash flow growth was more modest at 10.46%. Overall, QVI maintains a bullish outlook on Ingredion’s fundamentals and management execution.

Previously we covered a bullish thesis on Archer-Daniels-Midland Company (ADM) by Individual_Ad5883 in March 2025, which highlighted the company’s diversified portfolio and cost-saving initiatives to enhance profitability. The stock has appreciated approximately 31.62% since our coverage as the thesis played out through resilient cash flows. David J. Waldron shares a similar view in his bullish thesis on Ingredion Incorporated, emphasizing exposure to specialty ingredients and plant-based products.

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Disclosure: None.