Ingham’s is a reasonable company.

Cashflows are robust…

Margins somewhat cyclical around 5.5%…

…and screens well relative to peers (with WOW looking decidedly expensive) on our regression framework.

On ranked value metrics, ING is attractive, relative to peers.

And overall screens as a QGARP type stock (Quality Growth at a Reasonable Price).

Against that, raw inputs to feedstock (things like wheat, corn, soybeans) and fertiliser prices are creating raw material headwinds…

And hence the highlighted points below, in the AGM update released yesterday.

Market reaction was pretty negative, and in general, the market is looking to work out “who-has-pricing-power” in the current inflationary environment, and allocating accordingly.

Overall, one for us to watch, with interest.

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