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

Inghams Group Ltd. (ING) AI Stock Analysis

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AU:ING

Inghams Group Ltd.

(Sydney:ING)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
AU$2.50
▲(4.60% Upside)
The overall stock score for Inghams Group Ltd. is primarily influenced by its mixed financial performance and bearish technical indicators. While the company shows strong cash flow management and attractive valuation metrics, the declining revenue, high leverage, and negative market momentum weigh heavily on the score.
Positive Factors
Cash Flow Management
Strong cash flow management indicates the company's ability to generate cash relative to its net income, which is crucial for sustaining operations and funding growth.
Profitability Margins
Stable profitability margins suggest operational efficiency, allowing the company to maintain profitability despite revenue challenges.
Return on Equity
High return on equity indicates effective use of shareholders' equity to generate profits, reflecting strong management performance and business efficiency.
Negative Factors
Revenue Decline
Declining revenue growth poses a risk to the company's market position and long-term profitability, necessitating strategic initiatives to reverse the trend.
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.
Free Cash Flow Decline
A significant decline in free cash flow can strain liquidity, affecting the company's ability to fund operations, pay dividends, and reduce debt.

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 poultry producer and food company, primarily engaged in the production, processing, and distribution of high-quality chicken and turkey products. With a strong presence in the Australian and New Zealand markets, the company operates in the food sector, focusing on both retail and foodservice channels. Core products include fresh and frozen poultry, value-added processed foods, and a range of ready-to-cook options, catering to the growing demand for convenient and nutritious meal solutions.
How the Company Makes MoneyInghams Group Ltd. generates revenue primarily through the sale of poultry products, which includes whole birds, cuts, and processed items. The company's revenue model is supported by multiple key streams: retail sales through supermarkets and grocery stores, foodservice sales to restaurants and catering businesses, and export sales to international markets. Significant partnerships with major retailers enhance distribution capabilities, while a focus on value-added products allows the company to capture higher margins. Additionally, Inghams invests in operational efficiencies and supply chain improvements to optimize costs and enhance profitability.

Inghams Group Ltd. Financial Statement Overview

Summary
Inghams Group Ltd. exhibits a mixed financial performance. While profitability margins are stable, the company faces challenges with declining revenue and high leverage. Cash flow generation remains strong, but the decrease in free cash flow growth is a concern. Overall, the company needs to address its revenue growth and leverage to improve financial health.
Income Statement
65
Positive
Inghams Group Ltd. has shown a decline in revenue growth with a negative growth rate of -2.44% in the latest year. However, the company maintains a reasonable gross profit margin of 18.45% and a net profit margin of 2.85%. The EBIT and EBITDA margins are also stable at 6.62% and 8.90%, respectively, indicating operational efficiency despite the revenue decline.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio of 5.63, which suggests significant leverage and potential financial risk. However, the return on equity is strong at 32.41%, indicating effective use of equity to generate profits. The equity ratio is relatively low at 11.72%, highlighting a reliance on debt financing.
Cash Flow
60
Neutral
Free cash flow has decreased by 28.64%, which is a concern for liquidity. However, the operating cash flow to net income ratio of 3.56 and free cash flow to net income ratio of 2.36 demonstrate strong cash generation relative to net income, indicating good cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.15B3.15B3.26B3.04B2.71B2.67B
Gross Profit581.70M581.70M620.90M511.30M405.50M486.80M
EBITDA280.70M280.70M232.00M420.90M370.20M447.00M
Net Income89.80M89.80M101.50M60.40M35.10M83.30M
Balance Sheet
Total Assets2.36B2.36B2.40B2.57B2.54B2.54B
Cash, Cash Equivalents and Short-Term Investments106.40M106.40M110.70M136.30M131.60M158.10M
Total Debt1.56B1.56B1.60B1.90B1.94B1.94B
Total Liabilities2.09B2.09B2.18B2.37B2.38B2.38B
Stockholders Equity277.00M277.00M219.60M201.80M158.20M163.60M
Cash Flow
Free Cash Flow212.00M212.00M256.80M259.70M267.60M360.90M
Operating Cash Flow319.30M319.30M418.50M331.60M329.50M427.20M
Investing Cash Flow-135.30M-134.70M-164.10M-68.40M-58.10M-55.60M
Financing Cash Flow-165.20M-189.50M-279.70M-258.70M-309.80M-347.60M

Inghams Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.39
Price Trends
50DMA
2.45
Positive
100DMA
2.61
Negative
200DMA
3.01
Negative
Market Momentum
MACD
-0.01
Positive
RSI
52.82
Neutral
STOCH
38.18
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 2.39 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.45, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.18 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$1.17B15.5312.11%3.96%-2.82%12.29%
67
Neutral
$1.56B38.772.58%6.54%12.27%-35.60%
66
Neutral
AU$46.16M6.6229.12%2.63%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
60
Neutral
AU$887.11M9.8936.84%7.95%-3.36%-11.53%
57
Neutral
AU$1.46B25.205.24%5.25%2.25%-2.41%
49
Neutral
AU$873.64M15.183.47%16.63%66.67%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ING
Inghams Group Ltd.
2.39
-0.49
-16.96%
AU:AAC
Australian Agricultural Company
1.45
0.05
3.57%
AU:ELD
Elders Limited
6.97
0.11
1.59%
AU:GNC
Graincorp Limited Class A
7.04
0.09
1.27%
AU:FRM
Farm Pride Foods Limited
0.20
0.07
53.85%
AU:SGLLV
Ricegrowers Ltd. Class B
17.19
7.31
73.99%

Inghams Group Ltd. Corporate Events

S&P Dow Jones Indices Announces Changes to S&P/ASX Indices for December 2025
Dec 5, 2025

S&P Dow Jones Indices announced changes to the S&P/ASX Indices, effective December 22, 2025, following their quarterly review. The S&P/ASX 50 Index will see the addition of Lynas Rare Earths Limited and Washington H. Soul Pattinson and Company Limited, while Amcor PLC and Mirvac Group will be removed. The S&P/ASX 100 Index will include Eagers Automotive Limited and Capricorn Metals Limited, with Reece Limited and Reliance Worldwide Corporation Limited being removed. The S&P/ASX 200 Index will add six companies, including Aussie Broadband Limited and NexGen Energy, while removing six others, including Inghams Group Limited. These changes could impact the market positioning and investment strategies of the affected companies.

Inghams Group Director’s Interest Update: New Performance Rights Acquired
Dec 1, 2025

Inghams Group Limited has announced a change in the interests of its director, Edward Alexander, with the acquisition of 430,331 Unquoted Performance Rights as part of the company’s long-term incentive plan. This move, approved at the 2025 AGM, aligns with the company’s strategy to incentivize its leadership team, potentially impacting the company’s operational focus and stakeholder interests by strengthening leadership commitment to company goals.

Inghams Group Limited’s AGM Resolutions Passed with Strong Support
Nov 13, 2025

Inghams Group Limited held its Annual General Meeting on November 13, 2025, where all resolutions proposed to shareholders were passed by poll. The results indicate strong shareholder support for the company’s strategic decisions, including the re-election of directors and approval of the remuneration report. This outcome reflects positively on the company’s governance and may bolster investor confidence.

Inghams Group Restructures for Cost Efficiency Amidst Operational Challenges
Nov 11, 2025

Inghams Group Limited has announced a leadership and organizational restructure aimed at enhancing accountability and reducing costs, which is expected to save $8-10 million annually. Despite facing higher operational costs in Australia, the company reaffirms its FY26 guidance for underlying EBITDA, anticipating improved performance in the second half of the year due to corrective actions and favorable market conditions. The company has observed stable demand and improved wholesale pricing, although short-term cost pressures are impacting first-half earnings. Inghams remains optimistic about long-term sustainable growth as they address operational inefficiencies and stabilize inventory.

Inghams Group Announces Change in Substantial Holding
Oct 30, 2025

Inghams Group Ltd. has announced that Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in the company as of October 28, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market dynamics, potentially affecting stakeholders’ interests.

FMR LLC Ceases to Be Substantial Holder in Inghams Group
Oct 28, 2025

FMR LLC and its entities have ceased to be substantial holders in Inghams Group Ltd as of October 24, 2025. This change was due to the sale of a significant number of shares, impacting the voting securities of the company. The divestment may affect Inghams Group’s shareholder composition and influence within the market.

Inghams Group Denies Sale Rumors Amid Market Speculation
Oct 22, 2025

Inghams Group Limited has addressed recent media speculation regarding a potential sale of the company, stating that no discussions or plans for such a sale are currently underway. The company reassures stakeholders that it will continue to meet its disclosure obligations, ensuring transparency and maintaining trust within the market.

Inghams Group Schedules 2025 Annual General Meeting
Oct 9, 2025

Inghams Group Limited has announced its 2025 Annual General Meeting, scheduled for November 13, 2025, at The Langham Hotel in Sydney and online. This meeting is a significant event for shareholders to engage with the company’s management and discuss future strategies, potentially impacting the company’s operations and stakeholder interests.

Inghams Group Releases 2025 Corporate Governance Statement
Oct 9, 2025

Inghams Group Limited has released its corporate governance statement for the financial year ending June 28, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, including board responsibilities, director appointments, and executive agreements. This disclosure is crucial for maintaining transparency and accountability, reinforcing Inghams’ commitment to robust governance practices, which can positively impact stakeholder trust and the company’s industry standing.

Inghams Group Releases 2025 Corporate Governance Statement
Oct 9, 2025

Inghams Group Limited has released its Corporate Governance Statement for the financial year ending June 28, 2025, outlining its adherence to the ASX Corporate Governance Principles and Recommendations. The statement highlights the Board’s responsibilities, including overseeing corporate strategy, risk management, and ESG commitments, as well as ensuring transparency and accountability in its operations. This governance framework aims to strengthen Inghams’ market position and maintain stakeholder trust.

Inghams Group Announces Director’s Change in Securities Interests
Sep 18, 2025

Inghams Group Limited announced a change in the interests of its director, Edward Alexander, involving the acquisition and disposal of various securities as part of the company’s equity incentive schemes. These changes, which include the vesting and lapsing of performance rights and deferred share rights, are part of the Managing Director’s remuneration package and are executed in accordance with the company’s Equity Incentive Plan rules. The announcement reflects the company’s ongoing commitment to aligning executive compensation with performance and shareholder interests.

Inghams Group Announces Cessation of Performance Rights
Sep 18, 2025

Inghams Group Limited has announced the cessation of 708,249 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders regarding the company’s ability to meet certain performance conditions.

Inghams Group Ltd. Issues New Securities to Enhance Market Position
Sep 18, 2025

Inghams Group Ltd. has announced the issuance of 431,028 new ordinary fully paid securities as of September 15, 2025. This move indicates a strategic financial maneuver, potentially aimed at raising capital or rewarding stakeholders, which could influence the company’s market position and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 02, 2025