Ingredion Inc. (INGR) Stock Evaluation

Ingredion is a global ingredient solutions company. They specialize in producing sweeteners, starches, plant-based proteins, and biomaterials derived from grains, fruits, vegetables, and other plant sources. Their products are used across various industries, including food and beverages, pharmaceuticals, brewing, and even paper manufacturing. Ingredion is committed to innovation and sustainability, helping customers create consumer-preferred products with enhanced nutrition, taste, and environmental benefits.

Sustainability Criteria

Environmental Criteria (40%)

1. Water Usage & Conservation (4/5): Ingredion has committed to reducing water use intensity by 30% in high-stress geographies by 2030. This demonstrates strong efforts in water conservation, though the full implementation and results are yet to be seen.

2. Land Use & Soil Health (3/5): Ingredion supports sustainable agriculture practices, including regenerative initiatives. However, specific details on crop rotation or biodiversity efforts are limited

3. Sustainable Farming Practices (4/5): The company collaborates with suppliers to implement sustainable and regenerative farming practices. Their focus on plant-based proteins and sustainable sourcing is commendable.

Social Criteria (30%)

1. Labor Practices & Fair Wages (3/5): While Ingredion emphasizes human rights and safe working conditions, there is limited publicly available data on fair wages and labor practices in farming communities.

2. Supply Chain Ethics & Transparency (4/5): Ingredion conducts audits and collaborates with suppliers to ensure ethical standards. Their commitment to zero deforestation and sustainable sourcing adds to their transparency.

3. Community Support & Engagement (3/5): Ingredion engages with local communities through initiatives like education and infrastructure development. However, more specific examples of direct community impact would strengthen their score.

Governance Criteria (30%)

1. Governance & Ethical Standards (4/5): Ingredion's board demonstrates transparency and independence, with strong anti-corruption measures. Their alignment with the United Nations Sustainable Development Goals reflects ethical governance.

2. Sustainability Goals & Reporting (5/5): The company has clear, measurable sustainability targets, such as reducing greenhouse gas emissions by 25% and achieving zero waste to landfill by 2030. They regularly report progress in their sustainability reports.

3. Supply Chain Sustainability (4/5): Ingredion ensures sustainability throughout its supply chain, focusing on sourcing sustainable ingredients and avoiding deforestation. Their efforts are robust but could benefit from more detailed disclosures.

Weighted Score Calculation

• Environmental:  (4+3+4)/3 times 0.4 = 1.87

• Social:  (3+4+3)/3 times 0.3 = 0.90

• Governance:  (4+5+4)/3 times 0.3 = 1.30

Total ESG Score: 4.07/5

Financial Criteria

• Market Capitalization: $8.70 Billion

• Enterprise Value / EBITDA: 8.22

• 5-Year EPS Growth: 5.09%

• Gross Margin: 26.61%

• Payout Ratio: 32.53%

• Debt-to-Equity Ratio: 0.53