Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: 1.09%
• Average Volume (3M): 117.72K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.26
• Revenue Growth: -7.38%
• EPS Growth: -57.42%
• Country: US
• Employees: 26,420
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Retailers - Staples
• EPS (TTM): 4.14
• Shares Outstanding: 14,545,750
• 10 Day Avg. Volume: 135,645
• 30 Day Avg. Volume: 117,717
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.21
• Price to Cash Flow (P/CF): -6.60
• 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 (IMKTA) is a leading supermarket chain operating primarily in the southeastern United States. Founded in 1963 and headquartered in Black Mountain, North Carolina, the company operates a network of retail grocery stores that offer a wide range of products including groceries, dairy, meat, produce, frozen foods, and non-food items. Ingles Markets also provides pharmacy services and fuel centers at many of its locations, enhancing its appeal as a one-stop shopping destination for local communities.

How the Company Makes Money

Ingles Markets generates revenue through the sale of grocery and non-grocery items in its supermarket locations. The primary revenue streams include the sale of food products such as fresh produce, meats, dairy, and packaged goods. Additionally, Ingles Markets earns income from its pharmacy services and fuel centers, which are strategically located to attract customers through convenience and competitive pricing. The company also benefits from private-label products, which typically offer higher margins compared to national brands. Ingles Markets' revenue model is further supported by its real estate operations, wherein it owns a significant portion of the properties on which its stores are located. This ownership reduces rental expenses and provides additional financial stability.

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
353.69M	353.69M	328.54M	267.20M	75.31M	6.90M
	Total Assets
2.53B	2.53B	2.47B	2.30B	2.02B	1.90B
	Total Debt
564.96M	564.96M	595.47M	571.91M	589.51M	605.50M
	Net Debt
211.27M	211.27M	266.93M	304.71M	519.20M	598.60M
	Total Liabilities
982.13M	982.13M	1.01B	1.04B	1.04B	1.08B
	Stockholders Equity
1.55B	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: 60.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 60.24 is below the 20-day moving average (MA) of 64.23, below the 50-day MA of 64.61, and below the 200-day MA of 69.03, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 9.58 is Positive, 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
COST	78 Outperform	$460.27B	60.89	30.98%	0.44%	5.35%	16.22%
WMT	77 Outperform	$762.93B	39.41	22.33%	0.85%	5.07%	25.86%
ACI	76 Outperform	$11.45B	11.11	30.82%	2.46%	0.97%	-24.43%
SFM	72 Outperform	$14.33B	38.71	28.79%	―	12.90%	50.20%
KR	68 Neutral	$45.51B	16.64	21.45%	1.99%	1.41%	46.58%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%
IMKTA	61 Neutral	$1.12B	14.54	<0.01%	1.09%	-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.

Ingles Markets Faces Financial Setbacks Post-Hurricane Helene

Ingles Markets reported financial results for the fourth quarter and fiscal year 2024, revealing significant impacts from Hurricane Helene, which caused $34.9 million in impairment losses due to inventory and property damage. The company’s fourth quarter net sales dropped to $1.40 billion from $1.58 billion year-over-year, with a net loss of $1.5 million compared to a $52.6 million profit in the previous year. For the fiscal year, net sales decreased to $5.64 billion from $5.89 billion, and net income fell to $105.5 million from $210.8 million, largely due to the hurricane’s impact and reduced operational weeks compared to the prior year.

Ingles Markets Faces Nasdaq Filing Delay Due to Hurricane

Ingles Markets announced that it received a notice from Nasdaq due to a delay in filing its Annual Report for the fiscal year ending September 28, 2024. The delay, attributed to the impact of Hurricane Helene, has not affected the immediate Nasdaq listing of its Class A Common Stock. The company has until February 18, 2025, to comply with Nasdaq’s filing requirements or submit a compliance plan. Ingles Markets intends to file the report within the 60-day period to regain compliance.