With its 8% yield, I think this undervalued ASX 200 stock is an opportunity not to miss

MotleyFool05-18

The S&P/ASX 200 Index (ASX: XJO) stock Inghams Group Ltd (ASX: ING) looks like a good buy because of its dividend income and the value it offers. Inghams claims to be the largest integrated poultry ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWith its 8% yield, I think this undervalued ASX 200 stock is an opportunity not to miss\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-18 03:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/05/18/with-its-8-yield-i-think-this-undervalued-asx-200-stock-is-an-opportunity-not-to-miss/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The S&P/ASX 200 Index (ASX: XJO) stock Inghams Group Ltd (ASX: ING) looks like a good buy because of its dividend income and the value it offers.\nInghams claims to be the largest integrated poultry ...</p>\n\n<a href=\"https://www.fool.com.au/2024/05/18/with-its-8-yield-i-think-this-undervalued-asx-200-stock-is-an-opportunity-not-to-miss/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ING.AU","symbol_name":"INGHAMS GROUP LTD","start_time":0,"source_url":"https://www.fool.com.au/2024/05/18/with-its-8-yield-i-think-this-undervalued-asx-200-stock-is-an-opportunity-not-to-miss/","article_id":"2436691940","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2436691940","pubTimestamp":1715974200,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"The S&P/ASX 200 Index  stock Inghams Group Ltd  looks like a good buy because of its dividend income and the value it offers.Inghams claims to be the largest integrated poultry producer in Australia and New Zealand. Its products are sold through various businesses, including fast food, food service distributors and wholesalers, and supermarkets.The company also has strong market positions across the Australian turkey, Australian stockfeed and New Zealand dairy feed industries.Inghams is recovering from the impacts of inflation, which significantly affected costs during that period a couple of years ago.On top of that, Inghams' new distribution in Hazelmere, WA, has started operations. It also opened new distribution centres in August 2022 and April 2023 in Victoria and South Australia, respectively. These new facilities can help the company's efficiencies.The prospect of rising profit, a growing dividend, and a big yield look like a compelling combination that could power tasty returns","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"ING.AU":"INGHAMS GROUP LTD","BK7505":"食品股","XJO.AU":"标普/澳交所 200指数","XKO.AU":"标普/澳交所 300指数","BK7141":"包装食品与肉类","XAO.AU":"标普/澳交所 普通股指数"},"translate_title":"鉴于其8%的收益率，我认为这只被低估的ASX 200股票是一个不容错过的机会","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ING.AU":1,"XJO.AU":1,"XAO.AU":0.9,"XKO.AU":0.9},"content_text":"The S&P/ASX 200 Index (ASX: XJO) stock Inghams Group Ltd (ASX: ING) looks like a good buy because of its dividend income and the value it offers.\nInghams claims to be the largest integrated poultry producer in Australia and New Zealand. Its products are sold through various businesses, including fast food, food service distributors and wholesalers, and supermarkets.\nThe company also has strong market positions across the Australian turkey, Australian stockfeed and New Zealand dairy feed industries.\nWhy the ASX 200 stock looks cheap\nInghams is recovering from the impacts of inflation, which significantly affected costs during that period a couple of years ago.\nThe company is now getting back to good profitability – the FY24 first-half result saw group core poultry volume grow 2.2% to 240.8kt, revenue rose 8.7% to $1.64 billion, the underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19.9% to $252.1 million, and the underlying net profit after tax (NPAT) jumped 134.2% to $62.3 million.\nInghams is expecting some benefit from lower key feed costs in FY25, which could help profit rise again.\nThe ASX 200 stock is also investing in automation which it expects, over time, will \"provide cost savings, higher yield and throughput outcomes, and improved product quality.\" It's also expected the automation investments will support increased production of value-add products and new customer opportunities.\nOn top of that, Inghams' new distribution in Hazelmere, WA, has started operations. It also opened new distribution centres in August 2022 and April 2023 in Victoria and South Australia, respectively. These new facilities can help the company's efficiencies.\nThe forecast on Commsec suggests Inghams could make earnings per share (EPS) of 33.4 cents in FY25 and 36.8 cents in FY26, putting it on a forward earnings multiple of under 12x for FY25 and under 11x for FY26.  \nWhile we don't know precisely what the earnings are going to be, things look positive for Inghams shares and the trajectory of profit.\nBig dividend yield\nWith the ASX 200 stock's low price/earnings (P/E) ratio, it's projected to have a solid dividend yield, just like before COVID-19.\nCommsec's forecast suggests Inghams might go with a dividend payout ratio of around 66%. This could lead to a grossed-up dividend yield of 8.3% in FY25 and 8.9% in FY26.\nThe prospect of rising profit, a growing dividend, and a big yield look like a compelling combination that could power tasty returns over the next two or three years.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2436691940"}