Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 0.92%
• Average Volume (3M): 103.27K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.32
• Revenue Growth: -5.42%
• EPS Growth: -20.80%
• Country: US
• Employees: 11,072
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.38
• Shares Outstanding: 14,548,611
• 10 Day Avg. Volume: 126,929
• 30 Day Avg. Volume: 103,272
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 0.03
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 5.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $86.00 ▲(11.27% Upside)

Ingles Markets scores well due to strong technical indicators and solid financial performance, despite concerns over declining revenue. The valuation is moderate, with a fair P/E ratio but low dividend yield. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Margin Sustainability

Efficient cost management supports sustainable margins, contributing to long-term profitability and competitive positioning.

Balance Sheet Health

A healthier balance sheet with lower leverage enhances financial stability and reduces risk, supporting long-term resilience.

Negative Factors

Revenue Decline

A declining revenue trend poses challenges for future growth and market competitiveness, potentially impacting long-term financial performance.

Earnings Decline

A significant decline in earnings per share indicates potential profitability challenges, which could affect investor confidence and capital allocation.

Revenue Growth Challenges

Ongoing revenue challenges may hinder the company's ability to invest in growth initiatives and maintain market share, affecting long-term prospects.

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 grocery products in its supermarkets, which includes both perishable and non-perishable items. The company's revenue model is driven by a combination of in-store sales and online grocery orders, catering to changing consumer preferences. Key revenue streams include groceries, pharmacy sales, and fuel sales from its gas stations. Additionally, Ingles benefits from private label products, which typically have higher margins compared to national brands. The company may also engage in partnerships with local suppliers and farms, promoting regional products and enhancing its market appeal. Seasonal promotions and loyalty programs further contribute to customer retention and increased sales, effectively bolstering the company’s earnings.

Ingles Markets Financial Statement Overview

Summary

Ingles Markets shows strong profitability and cash flow generation, with a robust gross profit margin and improved net profit margin. However, the declining revenue trend is a concern for future growth. The balance sheet indicates improved leverage and stable equity, contributing to financial stability.

Income Statement

Ingles Markets has shown a decline in revenue over the past year, with a negative revenue growth rate of -5.43%. However, the company maintains a strong gross profit margin of approximately 23.9% in the most recent year, indicating efficient cost management. The net profit margin has improved significantly, suggesting better profitability. Despite these strengths, the declining revenue trend is a concern.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating a reduction in leverage, which is a positive sign for financial stability. The return on equity has decreased from previous years but remains healthy, reflecting the company's ability to generate returns on shareholder investments. The equity ratio shows a stable financial position with a good proportion of equity financing.

Cash Flow

Ingles Markets has demonstrated a substantial increase in free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion from earnings. However, the free cash flow to net income ratio has fluctuated, which could indicate variability in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.33B	5.33B	5.64B	5.89B	5.68B	4.99B
Gross Profit	1.27B	1.27B	1.30B	1.40B	1.42B	1.30B
EBITDA	252.54M	252.54M	282.98M	416.55M	500.58M	469.05M
Net Income	83.59M	83.59M	105.54M	210.81M	272.76M	249.73M
Balance Sheet
Total Assets	2.57B	2.57B	2.53B	2.47B	2.30B	2.02B
Cash, Cash Equivalents and Short-Term Investments	366.25M	366.25M	353.69M	328.54M	267.20M	75.31M
Total Debt	543.67M	543.67M	564.96M	595.47M	612.50M	632.04M
Total Liabilities	950.12M	950.12M	982.13M	1.01B	1.04B	1.04B
Stockholders Equity	1.62B	1.62B	1.55B	1.46B	1.26B	983.26M
Cash Flow
Free Cash Flow	39.60M	39.60M	51.66M	92.82M	219.89M	165.70M
Operating Cash Flow	154.10M	154.10M	262.52M	266.41M	339.50M	306.30M
Investing Cash Flow	-109.94M	-109.94M	-206.18M	-170.10M	-111.99M	-127.98M
Financing Cash Flow	-31.60M	-31.60M	-31.18M	-34.97M	-30.62M	-114.90M

Ingles Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.29
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 77.29 is above the 20-day moving average (MA) of 73.60, above the 50-day MA of 73.24, and above the 200-day MA of 66.61, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.76 is Neutral, 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
IMKTA	72 Outperform	$1.33B	16.05	5.29%	0.92%	-5.42%	-20.80%
VLGEA	71 Outperform	$487.44M	9.38	11.22%	2.63%	3.88%	7.71%
NGVC	70 Neutral	$583.89M	12.83	24.02%	1.99%	7.19%	35.90%
WMK	67 Neutral	$1.64B	17.38	7.22%	2.06%	3.11%	6.54%
ACI	64 Neutral	$9.59B	10.18	32.04%	3.49%	2.08%	-1.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GO	52 Neutral	$986.28M	-214.29	-0.37%	―	7.22%	-108.99%

Ingles Markets Corporate Events

Ingles Markets Reports Q4 2025 Financial Results

Ingles Markets reported its financial results for the fourth quarter and fiscal year ended September 27, 2025. The company saw a decrease in net sales for both the quarter and the fiscal year compared to the previous year, with $1.37 billion for the quarter and $5.33 billion for the year. Despite the decline in sales, the company improved its gross profit margins and achieved a net income of $25.7 million for the quarter, recovering from a net loss in the same quarter of the previous year due to impairment losses from Hurricane Helene. For the fiscal year, net income was $83.6 million, down from $105.5 million the prior year. Ingles Markets continues to focus on enhancing customer experience and managing its financial resources effectively.

Ingles Markets Appoints New Board Member

On November 21, 2025, Ingles Markets, a North Carolina-based company, announced the resignation of John R. Lowden from its Board of Directors, effective immediately. L. Keith Collins, who has extensive experience in dairy operations and management, was appointed to fill the vacancy. Mr. Collins, previously President of Milkco, Inc., a subsidiary of Ingles Markets, will serve on the Board until the 2026 annual meeting of shareholders. His appointment is expected to bring valuable industry expertise to the Board, with no conflicts of interest reported.

Ingles Markets Director John Lowden to Resign

On October 23, 2025, John R. Lowden, a member of the Board of Directors of Ingles Markets, Incorporated, announced his decision not to stand for re-election and to resign from his position effective December 31, 2025, citing personal reasons.

Ingles Markets Updates Bylaws for Modern Governance

On September 19, 2025, Ingles Markets‘ board of directors adopted the Second Amended and Restated Bylaws, which introduced several updates including advance notice requirements for shareholder nominations, updated officer roles, and strengthened indemnification provisions. These changes aim to modernize company operations and enhance flexibility in board meetings, impacting the company’s governance and potentially influencing stakeholder engagement.