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Inghams Group Ltd. (AU:ING)
ASX:ING

Inghams Group Ltd. (ING) AI Stock Analysis

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AU

Inghams Group Ltd.

(Sydney:ING)

Rating:76Outperform
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. (ING) vs. iShares MSCI Australia ETF (EWA)

Inghams Group Ltd. Business Overview & Revenue Model

Company DescriptionInghams Group Ltd. (ING) is a leading Australian company in the agribusiness sector, specializing in the production and processing of poultry and related products. Established in 1918, Inghams operates across Australia and New Zealand, providing a range of chicken and turkey products to supermarkets, restaurants, and food service channels. The company is known for its commitment to quality and sustainability, adhering to high standards in animal welfare and environmental stewardship.
How the Company Makes MoneyInghams 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
85
Very Positive
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
70
Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
3.23B3.26B3.04B2.71B2.67B2.56B
Gross Profit
591.60M620.90M511.30M405.50M486.80M433.40M
EBIT
204.00M168.10M147.70M99.00M178.30M123.60M
EBITDA
261.70M232.00M420.90M370.20M393.50M389.60M
Net Income Common Stockholders
89.60M101.50M60.40M35.10M83.30M40.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
169.20M110.70M136.30M131.60M158.10M134.20M
Total Assets
2.37B2.40B2.57B2.54B2.54B2.57B
Total Debt
1.65B1.60B1.90B1.94B1.94B1.92B
Net Debt
1.49B1.49B1.76B1.81B1.78B1.79B
Total Liabilities
2.13B2.18B2.37B2.38B2.38B2.44B
Stockholders Equity
238.70M219.60M201.80M158.20M163.60M129.10M
Cash FlowFree Cash Flow
297.10M256.80M259.70M267.60M360.90M243.10M
Operating Cash Flow
382.90M418.50M331.60M329.50M427.20M329.80M
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
Positive
Last Price3.77
Price Trends
50DMA
3.51
Positive
100DMA
3.32
Positive
200DMA
3.13
Positive
Market Momentum
MACD
0.07
Positive
RSI
61.42
Neutral
STOCH
36.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ING, the sentiment is Positive. The current price of 3.77 is below the 20-day moving average (MA) of 3.79, above the 50-day MA of 3.51, and above the 200-day MA of 3.13, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ING.

Inghams Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNHF
78
Outperform
AU$3.38B20.8215.78%4.55%8.40%-22.95%
AUING
76
Outperform
€1.40B15.6838.76%5.42%1.77%-15.93%
AURFF
74
Outperform
AU$707.35M14.374.68%6.58%14.72%-42.17%
AUBGA
65
Neutral
€1.72B50.183.35%1.94%4.28%
65
Neutral
$8.94B14.984.76%203.76%3.54%-2.49%
AUELD
64
Neutral
€1.17B15.327.21%6.31%6.54%-0.58%
AUAAC
51
Neutral
$831.46M25.13-0.01%15.11%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ING
Inghams Group Ltd.
3.77
0.35
10.36%
AU:RFF
Rural Funds Group
1.81
-0.09
-4.85%
AU:BGA
Bega Cheese Limited
5.63
1.21
27.23%
AU:AAC
Australian Agricultural Company
1.38
-0.08
-5.48%
AU:ELD
Elders Limited
6.12
-1.76
-22.29%
AU:NHF
NIB Holdings Ltd
6.73
-0.54
-7.39%

Inghams Group Ltd. Corporate Events

Inghams Group Announces Change in Registry Address
Jun 6, 2025

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
Apr 21, 2025

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
Apr 2, 2025

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.

Australian Retirement Trust Becomes Substantial Holder in Inghams Group
Mar 28, 2025

Inghams Group Ltd. has announced that Australian Retirement Trust Pty Ltd has become a substantial holder in the company as of March 26, 2025. This development indicates that Australian Retirement Trust now holds a 5.019% voting power in Inghams Group Ltd., which may influence the company’s decision-making processes and potentially impact its strategic direction.

Inghams Group Director Increases Shareholding
Mar 17, 2025

Inghams Group Ltd. announced a change in the director’s interest notice, with Linda Bardo Nicholls, a director, acquiring an additional 3,588 ordinary shares through an on-market trade under the Non-Executive Director share purchase plan. This acquisition increases her total shareholding to 70,766 ordinary shares, reflecting a strategic move to strengthen her stake in the company, which could signal confidence in the company’s future prospects and potentially impact investor perceptions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.