Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: 1.06%
• Average Volume (3M): 124.10K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.23
• Revenue Growth: -7.38%
• EPS Growth: -57.42%
• Country: US
• Employees: 11,072
• Sector: Consumer Defensive
• Sector Strength: 93
• Industry: Grocery Stores
• EPS (TTM): 4.14
• Shares Outstanding: 14,545,750
• 10 Day Avg. Volume: 121,316
• 30 Day Avg. Volume: 124,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.21
• Price to Cash Flow (P/CF): -6.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ingles Markets' score is primarily affected by strong revenue growth and a solid balance sheet, offset by challenges in cash flow management and recent negative impacts from Hurricane Helene. The technical analysis indicates a bearish trend, while the valuation suggests fair pricing. The hurricane's impact is a significant concern, contributing to a cautious outlook.

Ingles Markets Business Overview & Revenue Model

Company Description

Ingles Markets, Incorporated operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company also owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. As of September 25, 2021, the company operated 189 supermarkets under the brand name Ingles, and nine supermarkets under the brand name Sav-Mor in western North Carolina, western South Carolina, northern Georgia, eastern Tennessee, southwestern Virginia, and northeastern Alabama, as well as 111 pharmacies and 107 fuel stations. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.

How the Company Makes Money

Ingles Markets generates revenue primarily through the sale of groceries and related products in its retail stores. The company's primary revenue stream is the direct sale of food items, general merchandise, and other consumables. Ingles also earns money through its in-store pharmacies, which provide prescription medications and health-related products. Furthermore, many stores offer additional services such as fuel centers, which contribute to the overall revenue. Ingles Markets benefits from strategic supplier relationships and efficient supply chain management, allowing it to maintain competitive pricing and operational efficiencies. The company also leverages its real estate holdings, as it owns a significant portion of the properties on which its stores are located, providing potential financial advantages through property appreciation and rental income.

Ingles Markets Financial Statement Overview

Summary

Ingles Markets demonstrates strong revenue growth and a stable balance sheet, but faces challenges in cash flow management. The income statement shows a steady revenue growth and stable operational performance, but declining net profit margins. The balance sheet is strong with moderate leverage and a robust equity base. However, cash flow analysis reveals negative operating cash flow in the TTM period and decreased cash efficiency, indicating significant cash management challenges.

Income Statement

Ingles Markets shows a steady revenue growth trend with a 3.3% increase in annual revenue from 2023 to 2024. The company maintains a healthy gross profit margin of approximately 22.9% in the TTM period. However, the net profit margin has decreased over time, indicating potential cost control issues. EBIT and EBITDA margins are relatively stable, suggesting consistent operational performance.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.36, indicating moderate leverage and a solid equity base. The equity ratio is high at 62.6%, showcasing a stable financial structure. The return on equity is robust, reflecting efficient use of shareholder funds, although it has slightly decreased recently.

Cash Flow

Cash flow analysis reveals challenges with operating cash flow turning negative in the TTM period, primarily due to increased capital expenditures. The free cash flow to net income ratio has also decreased, indicating less cash efficiency. Despite this, the company managed positive free cash flow growth in prior periods.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.29T	5.64B	5.89B	5.68B	4.99B	4.61B
	Gross Profit
302.09B	1.30B	1.40B	1.42B	1.30B	1.20B
	EBIT
103.40M	147.14M	292.30M	263.62M	225.97M	161.96M
	EBITDA
237.72M	282.98M	416.55M	508.51M	477.06M	400.95M
	Net Income Common Stockholders
78.74M	105.54M	210.81M	272.76M	249.73M	178.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.44M	353.69M	328.54M	267.20M	75.31M	6.90M
	Total Assets
1.51B	2.53B	2.47B	2.30B	2.02B	1.90B
	Total Debt
833.51M	564.96M	595.47M	571.91M	589.51M	605.50M
	Net Debt
757.07M	211.27M	266.93M	304.71M	519.20M	598.60M
	Total Liabilities
1.11B	982.13M	1.01B	1.04B	1.04B	1.08B
	Stockholders Equity
401.44M	1.55B	1.46B	1.26B	983.26M	819.33M
Cash Flow		Free Cash Flow
-81.32B	51.66B	92.82M	219.89M	165.70M	227.35M
	Operating Cash Flow
-43.40B	262.52B	266.41M	339.50M	306.30M	350.12M
	Investing Cash Flow
-34.00B	-206.18B	-170.10M	-111.99M	-127.98M	-117.35M
	Financing Cash Flow
-6.70B	-31.18B	-34.97M	-30.62M	-114.90M	-267.98M

Ingles Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMKTA, the sentiment is Negative. The current price of 62.12 is below the 20-day moving average (MA) of 62.92, below the 50-day MA of 63.85, and below the 200-day MA of 68.04, indicating a bearish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 83.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMKTA.

Ingles Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	77 Outperform	$15.03B	38.69	30.81%	―	12.90%	50.20%
ACI	76 Outperform	$13.27B	12.88	35.20%	2.23%	0.97%	-24.43%
KR	73 Outperform	$46.75B	19.26	26.59%	1.86%	-1.94%	23.94%
WMT	73 Outperform	$699.55B	36.28	22.23%	0.98%	5.07%	25.86%
COST	71 Outperform	$429.08B	56.46	32.89%	0.51%	6.13%	12.14%
Sector *	62 Neutral	$20.22B	14.00	-15.99%	3.22%	1.17%	3.32%
IMKTA	61 Neutral	$1.16B	15.10	5.15%	1.06%	-7.38%	-57.42%

Ingles Markets Corporate Events

Ingles Markets Reports Decline Amid Hurricane Helene Impact

For the first quarter of fiscal 2025, Ingles Markets reported a notable decline in net sales and profits, heavily impacted by Hurricane Helene which caused significant disruptions in western North Carolina. The hurricane resulted in store closures and infrastructure damage, contributing to a decrease in net income to $16.6 million from $43.4 million the previous year, with estimated revenue losses between $55 to $65 million due to the storm’s aftermath.