Inghams Group Ltd. (ING) AI Stock Analysis

• Market Cap: €1.32B
• Dividend Yield: 9.53%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.40
• Revenue Growth: 1.77%
• EPS Growth: -15.93%
• Country: AU
• Employees: 8,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 0.14
• Shares Outstanding: 371,679,630
• 10 Day Avg. Volume: 1,051,621
• 30 Day Avg. Volume: 1,047,063
• PEG Ratio: -1.42
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.59
• Price Target Upside: 1.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: ―

The most significant factor contributing to the score is the solid financial performance, particularly in terms of revenue growth and cash flow generation. Technical analysis supports a positive outlook, with stock price trends indicating bullish momentum. The reasonable valuation adds to the attractiveness, especially the dividend yield, which enhances income potential.

Positive Factors

Valuation

There is scope for the share price to build back to previous levels with a share price P/E rating at a ~40% discount to the market.

Negative Factors

Customer Diversification

A downgrade to FY25E expectations as their largest customer, Woolworths, looks to diversify their poultry supplier base.

Financial Performance

Result for the 6mths to Dec 24 was well below expectation at the EBIT level with that extracted from a Sales line that was 1.9% lower.

Inghams Group Ltd. Business Overview & Revenue Model

Company Description

Inghams Group Limited, together with its subsidiaries, produces and sells chicken and turkey products in Australia and New Zealand. The company provides fresh, fresh with flavor, frozen, gluten free, and ready to cook chicken and turkey products under the Ingham's brand name. It also offers stock feeds for poultry and pig industries. The company was founded in 1918 and is based in North Ryde, Australia.

How the Company Makes Money

Inghams Group Ltd. generates revenue primarily through the sale of poultry products, including fresh, frozen, and value-added chicken and turkey items. The company's revenue streams are diversified across various channels, including retail, food service, and wholesale. Significant partnerships with major supermarket chains and fast-food franchises help drive sales volume and market presence. Inghams also benefits from vertical integration, managing its supply chain from breeding and hatching to processing and distribution, which allows for cost control and efficiency improvements. Additionally, the company engages in export markets, contributing to its revenue through international sales.

Inghams Group Ltd. Financial Statement Overview

Summary

Inghams Group Ltd. shows solid revenue growth and operational efficiency, though profitability margins indicate room for improvement. The balance sheet displays a high leverage risk, which could affect financial stability. Cash flows are generally strong, with good operational cash generation, but there is a slight decline in free cash flow. Continued focus on improving profitability and managing leverage will be crucial for sustainable growth.

Income Statement

Inghams Group Ltd. demonstrated strong revenue growth of 7.17% from the previous year, indicating robust demand in the consumer foods sector. The gross profit margin improved to 19.03%, reflecting better cost management. However, the net profit margin at 3.11% suggests pressure on overall profitability due to high operational costs. The EBIT margin of 5.15% and EBITDA margin of 7.11% show stable operational efficiency but leave room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio is high at 7.27, indicating significant leverage which poses potential financial risk. Despite this, the return on equity (ROE) of 46.21% reflects strong profitability for equity holders. The equity ratio of 9.15% is low, suggesting limited financial cushioning against liabilities. Overall, the balance sheet shows a need for better equity strengthening and debt management.

Cash Flow

The free cash flow growth rate is slightly negative, indicating a minor decline compared to the previous year, but the free cash flow to net income ratio is favorable at 2.53, signifying good cash generation relative to profits. The operating cash flow to net income ratio is high at 4.12, reflecting strong cash flow from operations. While the cash flow is generally robust, the decline in free cash flow warrants attention.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.23B	3.26B	3.04B	2.71B	2.67B	2.56B
Gross Profit	591.60M	620.90M	511.30M	405.50M	486.80M	433.40M
EBITDA	261.70M	232.00M	420.90M	370.20M	393.50M	389.60M
Net Income	89.60M	101.50M	60.40M	35.10M	83.30M	40.10M
Balance Sheet
Total Assets	2.37B	2.40B	2.57B	2.54B	2.54B	2.57B
Cash, Cash Equivalents and Short-Term Investments	169.20M	110.70M	136.30M	131.60M	158.10M	134.20M
Total Debt	1.65B	1.60B	1.90B	1.94B	1.94B	1.92B
Total Liabilities	2.13B	2.18B	2.37B	2.38B	2.38B	2.44B
Stockholders Equity	238.70M	219.60M	201.80M	158.20M	163.60M	129.10M
Cash Flow
Free Cash Flow	297.10M	256.80M	259.70M	267.60M	360.90M	243.10M
Operating Cash Flow	382.90M	418.50M	331.60M	329.50M	427.20M	329.80M
Investing Cash Flow	-112.60M	-164.10M	-68.40M	-58.10M	-55.60M	-77.20M
Financing Cash Flow	-175.40M	-279.70M	-258.70M	-297.50M	-347.60M	-252.00M

Inghams Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ING, the sentiment is Neutral. The current price of 3.55 is below the 20-day moving average (MA) of 3.72, below the 50-day MA of 3.67, and above the 200-day MA of 3.18, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 4.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ING.

Inghams Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	76 Outperform	€1.32B	14.72	38.76%	9.53%	1.77%	-15.93%
Sector *	68 Neutral	¥196.82B	21.24	8.29%	2.39%	4.99%	2.94%
ASAGF		$550.98M	24.83	-0.01%	―	―	―
FTZ		€667.53M	14.40	7.21%	8.79%	―	―
GRCLF		$1.13B	24.84	4.61%	6.09%	―	―
SGLLV	76 Outperform	AU$724.06M	10.83	11.56%	2.70%	―	―
FRM	51 Neutral	AU$69.24M	―	1.33%	―	-0.71%	91.71%

Inghams Group Ltd. Corporate Events

FMR LLC Reduces Stake in Inghams Group Ltd.

FMR LLC, a substantial holder in Inghams Group Ltd., has reduced its voting power from 6.47% to 5.46%. The change in FMR’s interest, marked by a series of buy and sell transactions, reflects a strategic adjustment in its investment portfolio, potentially impacting Inghams Group’s market perception and shareholder dynamics.

The most recent analyst rating on (AU:ING) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Inghams Group Ltd. stock, see the AU:ING Stock Forecast page.

Inghams Group Announces Change in Registry Address

Inghams Group Limited has announced a change in the registry address for its Sydney office of Computershare Investor Services Pty Limited, effective from 10 June 2025. This update, while operational in nature, reflects the company’s ongoing administrative adjustments and is not expected to have significant implications for stakeholders or its market operations.

The most recent analyst rating on (AU:ING) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Inghams Group Ltd. stock, see the AU:ING Stock Forecast page.

Inghams Group Ltd. Announces Changes in Substantial Holder Interests

Inghams Group Ltd. has announced a change in the interests of a substantial holder, reflecting shifts in voting power and relevant interests in the company’s securities. This update involves State Street Global Advisors and its subsidiaries, which have adjusted their holdings and voting rights in Inghams Group Ltd. The announcement highlights the involvement of several financial entities, including State Street Bank and Trust Company, and outlines the changes in the nature of relevant interests and associations. This development could impact the company’s governance and influence the decisions of stakeholders due to the altered distribution of voting power.

Inghams Group Ltd. Issues New Performance Rights for Employee Incentive

Inghams Group Ltd. has announced the issuance of 102,209 performance rights as part of an employee incentive scheme. These securities are unquoted and are not intended for trading on the ASX, reflecting the company’s ongoing efforts to motivate and retain its workforce, which could enhance operational efficiency and stakeholder value.