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Ingles Markets Inc (IMKTA)
:IMKTA

Ingles Markets (IMKTA) AI Stock Analysis

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Ingles Markets

(NASDAQ:IMKTA)

Rating:61Neutral
Price Target:
$65.00
▲(7.35%Upside)
Ingles Markets faces financial and operational challenges, including declining revenue and profit margins, which are exacerbated by recent sales declines. The technical analysis indicates bearish momentum, and the valuation, while reasonable, does not compensate for the current performance issues. The overall outlook remains cautious, necessitating strategic actions to reverse the negative trends.

Ingles Markets (IMKTA) vs. SPDR S&P 500 ETF (SPY)

Ingles Markets Business Overview & Revenue Model

Company DescriptionIngles Markets, Incorporated (IMKTA) is a prominent American supermarket chain operating primarily in the southeastern United States. Founded in 1963, the company is headquartered in Black Mountain, North Carolina. Ingles Markets runs a robust network of over 200 retail grocery stores, offering a wide array of products including fresh produce, meats, dairy, groceries, and household items. Additionally, many of its locations feature in-store pharmacies, bakeries, and delis, enhancing the shopping experience for its customers. The company is committed to providing quality products and exceptional service, catering to the diverse needs of its regional market.
How the Company Makes MoneyIngles 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 exhibits financial stability with a strong equity base and conservative leverage. However, the company faces challenges in revenue and profit growth, as evidenced by declining margins and negative revenue growth. Cash flow generation remains robust, but the decrease in free cash flow growth could limit future expansion opportunities. Strategic initiatives may be necessary to drive growth and enhance profitability.
Income Statement
70
Positive
Ingles Markets has shown a slight decline in revenue over the TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin stands at 22.94%, and the net profit margin is relatively low at 1.14%. The EBIT margin is also modest at 1.57%, indicating potential challenges in operational efficiency. EBITDA margin is 4.19%, reflecting manageable depreciation and amortization expenses. The revenue growth was negative over the last couple of years, indicating a need for strategic initiatives to reignite growth.
Balance Sheet
75
Positive
The company's debt-to-equity ratio is 0.35, suggesting a conservative use of leverage. The return on equity (ROE) is low at 3.94%, indicating limited efficiency in generating profits from equity. The equity ratio is solid at 62.73%, highlighting a strong equity base relative to total assets. The balance sheet suggests financial stability but shows limited profitability growth.
Cash Flow
65
Positive
The free cash flow growth rate is negative due to reduced operating cash flow and increased capital expenditures. The operating cash flow to net income ratio is 3.16, showing strong cash generation from operations relative to net income. The free cash flow to net income ratio is 0.35, indicating that a significant portion of net income is reinvested in the business. While cash flow from operations is healthy, the negative free cash flow growth poses concerns for future investments.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
5.41B5.64B5.89B5.68B4.99B4.61B
Gross Profit
1.24B1.30B1.40B1.42B1.30B1.20B
EBIT
84.77M147.14M292.30M263.62M225.97M161.96M
EBITDA
226.42M282.98M416.55M508.51M477.06M400.95M
Net Income Common Stockholders
61.94M105.54M210.81M272.76M249.73M178.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
297.33M353.69M328.54M267.20M75.31M6.90M
Total Assets
2.51B2.56B2.47B2.30B2.02B1.90B
Total Debt
553.09M564.96M595.47M571.91M589.51M605.50M
Net Debt
255.76M211.27M266.93M304.71M519.20M598.60M
Total Liabilities
934.61M982.13M1.01B1.04B1.04B1.08B
Stockholders Equity
1.57B1.55B1.46B1.26B983.26M819.33M
Cash FlowFree Cash Flow
21.48M51.66M92.82M219.89M165.70M227.35M
Operating Cash Flow
195.96M262.52M266.41M339.50M306.30M350.12M
Investing Cash Flow
-169.44M-206.18M-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 Price60.55
Price Trends
50DMA
61.94
Negative
100DMA
62.85
Negative
200DMA
65.35
Negative
Market Momentum
MACD
-0.39
Positive
RSI
45.11
Neutral
STOCH
32.18
Neutral
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 60.55 is below the 20-day moving average (MA) of 61.20, below the 50-day MA of 61.94, and below the 200-day MA of 65.35, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 32.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMKTA.

Ingles Markets Risk Analysis

Ingles Markets disclosed 12 risk factors in its most recent earnings report. Ingles Markets reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ingles Markets Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$495.24M9.5611.87%2.69%3.94%12.50%
70
Outperform
$953.36M23.3523.38%1.16%9.36%43.17%
65
Neutral
$8.89B14.914.67%6.16%3.60%-2.89%
WMWMK
64
Neutral
$1.98B18.537.54%1.84%1.76%6.01%
61
Neutral
$1.13B18.584.00%1.09%-7.79%-64.85%
GOGO
60
Neutral
$1.29B80.941.43%10.37%-73.84%
54
Neutral
$466.28M238.55-1.92%5.13%-6.55%53.81%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IMKTA
Ingles Markets
60.55
-8.29
-12.04%
VLGEA
Village Super Market
37.10
11.77
46.47%
WMK
Weis Markets
73.87
12.87
21.10%
NGVC
Natural Grocers
41.54
20.93
101.55%
GO
Grocery Outlet Holding
13.63
-7.28
-34.82%
DNUT
Krispy Kreme
2.64
-8.98
-77.28%

Ingles Markets Corporate Events

Business Operations and StrategyFinancial Disclosures
Ingles Markets Reports Decline in Q2 2025 Sales
Negative
May 8, 2025

Ingles Markets reported a decline in net sales and net income for the second quarter and first half of fiscal 2025 compared to the previous year. Despite the decrease in sales and income, the company reduced its interest expenses and capital expenditures, and it remains confident in its financial resources to meet future capital and operational needs.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.