Inghams Group Ltd. (ING) AI Stock Analysis

• Market Cap: AU$1.28B
• Dividend Yield: 6%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.41
• Revenue Growth: 1.77%
• EPS Growth: -15.93%
• Country: AU
• Employees: 8,000
• Sector: Consumer Defensive
• Sector Strength: 90
• Industry: Consumer Products - Foods
• EPS (TTM): 0.24
• Shares Outstanding: 371,679,630
• 10 Day Avg. Volume: 1,289,529
• 30 Day Avg. Volume: 1,232,885
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.37
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: AU$3.52
• Price Target Upside: 1.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Inghams Group Ltd. presents a balanced investment case with solid financial performance characterized by growth in revenue and operational efficiency. However, its high leverage poses a financial risk that requires attention. The stock's valuation is reasonable, with a favorable P/E ratio and a high dividend yield, making it attractive for both growth and income investors. The technical analysis indicates stability without clear momentum signals.

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 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 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.26B	3.04B	2.71B	2.67B	2.56B
	Gross Profit
620.90M	511.30M	405.50M	486.80M	433.40M
	EBIT
168.10M	147.70M	99.00M	178.30M	123.60M
	EBITDA
232.00M	420.90M	370.20M	393.50M	389.60M
	Net Income Common Stockholders
101.50M	60.40M	35.10M	83.30M	40.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.70M	136.30M	131.60M	158.10M	134.20M
	Total Assets
2.40B	2.57B	2.54B	2.54B	2.57B
	Total Debt
1.60B	1.90B	1.94B	1.94B	1.92B
	Net Debt
1.49B	1.76B	1.81B	1.78B	1.79B
	Total Liabilities
2.18B	2.37B	2.38B	2.38B	2.44B
	Stockholders Equity
219.60M	201.80M	158.20M	163.60M	129.10M
Cash Flow		Free Cash Flow
256.80M	259.70M	267.60M	360.90M	243.10M
	Operating Cash Flow
418.50M	331.60M	329.50M	427.20M	329.80M
	Investing Cash Flow
-164.10M	-68.40M	-58.10M	-55.60M	-77.20M
	Financing Cash Flow
-279.70M	-258.70M	-297.50M	-347.60M	-252.00M

Inghams Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3.45 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.21, and above the 200-day MA of 3.09, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 70.32 is Negative, neither overbought nor oversold. The STOCH value of 84.61 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHF	78 Outperform	€3.36B	20.67	15.78%	4.33%	8.40%	-22.95%
ING	76 Outperform	AU$1.28B	14.31	38.76%	6.00%	1.77%	-15.93%
RFF	68 Neutral	AU$683.96M	13.97	4.68%	6.93%	14.72%	-42.17%
BGA	64 Neutral	€1.63B	47.50	3.35%	2.06%	4.28%	―
Sector *	64 Neutral	$9.18B	14.52	4.32%	185.59%	3.96%	5.53%
ELD	55 Neutral	€1.17B	21.73	5.24%	6.43%	-5.72%	-55.55%
AAC	51 Neutral	$855.56M	24.78	2.26%	―	15.11%	―

Inghams Group Ltd. Corporate Events

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.

Australian Retirement Trust Becomes Substantial Holder in Inghams Group

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

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.

Inghams Group Appoints New Zealand Chief Executive

Inghams Group Limited has announced the appointment of Matthew Easton as the new Chief Executive for its New Zealand operations, effective March 10, 2025. Easton, who has been with Inghams since 2015, brings extensive experience in strategy, sales, marketing, and operations, and is expected to lead the New Zealand business through its next growth phase. This leadership change comes as the current Chief Executive, Edward Alexander, is set to become the CEO and Managing Director of Inghams later in the year. The appointment is seen as a strategic move to continue driving the company’s growth and delivering value to its stakeholders.

Australian Retirement Trust Ceases Substantial Holding in Inghams Group

Inghams Group Limited has announced that Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in the company as of February 26, 2025. This change in substantial holding could impact the company’s shareholder dynamics and influence its market positioning, as substantial holders often play a significant role in corporate governance and strategic decision-making.

Vanguard Group Increases Stake in Inghams Group Ltd.

The Vanguard Group has increased its voting power in Inghams Group Ltd. from 5.393% to 6.395%, as of February 20, 2025. This change in substantial holding indicates a growing interest and investment by Vanguard in Inghams, potentially impacting the company’s market dynamics and stakeholder interests.

Inghams Group Ltd. Releases 1H25 Financial Results

Inghams Group Ltd. announced their 1H25 financial results presentation, which took place on February 21, 2025, and was hosted by CEO Andrew Reeves and CFO Gary Mallett. The event was accessible through a live webcast, with a replay available on the company’s Investor Centre website, reflecting their commitment to transparency and engagement with stakeholders.

Inghams Group Reports Robust Interim FY25 Results, Affirms Guidance

Inghams Group Limited announced strong interim financial results for the first half of fiscal year 2025, marking its second-highest interim earnings since listing. Despite a decline in both core and total poultry volumes, the company managed to maintain a disciplined pricing approach and achieved significant cost reductions, largely due to operational efficiencies and cost management initiatives. The acquisition of Bostock Brothers in New Zealand positively impacted sales and growth, and the company successfully adapted to changes in its customer portfolio following a new supply agreement with Woolworths. Inghams remains confident in meeting its FY25 guidance, with expectations of modest growth in core poultry net selling price and benefits from lower feed costs.

Inghams Group Reports Revenue Decline and Strategic Acquisition

Inghams Group Limited reported a slight decline in revenue by 1.9% and an 18.8% decrease in profit for the first half of the financial year 2025 compared to the previous period. Despite the decrease in profit, the company declared a fully franked interim dividend of 11.0 cents per share, amounting to $40.9 million, to be paid in April 2025. The acquisition of Bostock Brothers Limited, an organic chicken business in New Zealand, marks a strategic expansion, potentially enhancing Inghams’ market position in the organic segment. The group’s joint venture with AFB International in pet food palatants continues, although it does not significantly impact the group’s overall financial results.

Australian Retirement Trust Acquires Substantial Stake in Inghams Group

Australian Retirement Trust Pty Ltd has become a substantial holder in Inghams Group Limited, acquiring a voting power of 5.003% with 18,595,837 fully paid ordinary shares. This acquisition signifies a notable stake in the company, potentially influencing its operations and decisions, while also highlighting the trust’s strategic investment in the poultry sector.