Core Thesis - Ingredion Incorporated is viewed positively due to its transition towards higher-growth plant-based proteins and alternative sweeteners, aligning with consumer preferences [3][5] - The company is recognized for its solid profitability and disciplined cost control, despite mixed financial performance [3][4] Company Overview - Ingredion is a century-old food ingredients manufacturer serving various industries, including food, paper, textiles, and biomaterials [2] - The company's share price was $107.68 as of December 2nd, with trailing and forward P/E ratios of 10.78 and 9.51 respectively [1] Financial Performance - Ingredion's five-year annualized revenue growth is in the low single digits, with a 5.2% decline over the past year, underperforming the S&P 500 [3] - The company returned approximately $426 million to shareholders in 2024 through dividends and buybacks, including the repurchase of 1.65 million shares [4] - Owners' earnings have shown mid-double-digit returns over the past five years, while free cash flow growth was more modest at 10.46% [4] Market Position - Morningstar assigns Ingredion a narrow economic moat due to its specialty ingredients business, which benefits from pricing power and customer switching costs [2] - The company is considered a high-quality, dividend-paying small-cap in the consumer staples sector [2]