USA – On August 31, 2024, global investment management firm BlackRock Inc. expanded its investment in Ingredion Inc., purchasing an additional 228,222 shares at US$134.31 per share.
The acquisition brings BlackRock’s total holdings in Ingredion to 6,566,730 shares, reflecting the company’s growing interest in the ingredient manufacturer.
BlackRock, founded in 1988, has established itself as a leader in investment management, with a vast network of subsidiaries offering financial products, including mutual funds and ETFs.
Ingredion, a key player in the consumer packaged goods sector, supplies ingredients to industries such as food, beverage, and animal nutrition.
Founded in 1997, the company specializes in both core products like high-fructose corn syrup and specialty ingredients such as plant proteins and natural sweeteners.
This move now sees the company making up 0.02% of BlackRock’s overall holdings.
The decision aligns with BlackRock’s ongoing strategy to invest in stable, income-generating firms, adding further diversification to its extensive range of assets.
Ingredion’s financial standing remains solid, with the company earning a 7 out of 10 in Financial Strength and an 8 out of 10 in Profitability.
However, its Growth Rank stands at a relatively low 2 out of 10, indicating slower expansion in comparison to other metrics.
The company’s financial stability is further reflected in its interest coverage ratio of 11.17 and an Altman Z score of 4.30, suggesting a strong foundation despite its overvaluation as assessed by GF Value.
For long-term investors, Ingredion’s profitability and established market presence continue to make it an appealing investment option.
In 2024, Ingredion reported record-breaking financial results.
Net sales reached US$8.2 billion, a 3% increase from the previous year.
The company also posted operating income of US$957 million, up 26%, and adjusted operating income of US$969 million, a rise of 23%.
Despite these gains, the company is currently considered overvalued, with a market capitalization of US$8.75 billion and a price-to-earnings ratio of 13.75%.
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