Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 1.01%
• Average Volume (3M): 120.16K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.29
• Revenue Growth: -7.96%
• EPS Growth: -64.67%
• Country: US
• Employees: 11,072
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Grocery Stores
• EPS (TTM): 1.38
• Shares Outstanding: 14,547,280
• 10 Day Avg. Volume: 141,904
• 30 Day Avg. Volume: 120,163
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.13
• Enterprise Value/Ebitda: 6.36
• 1Y Price Target: $65.00
• Price Target Upside: -0.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $65.00 ▼(-0.72% Downside)

Ingles Markets' overall stock score is primarily impacted by its financial performance challenges, including declining revenue growth and profitability. The lack of technical analysis data further limits the assessment of market trends. Additionally, recent corporate events indicate a negative outlook with declining sales and income. The valuation suggests moderate attractiveness, but the low dividend yield is a concern.

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 items in its supermarkets. The company's revenue model is centered on retail operations, where it sells a diverse array of products, including perishables, non-perishables, and general merchandise. Key revenue streams include sales from grocery departments, pharmacy services, and fuel sales from its associated fuel centers. Ingles also benefits from private label products, which typically offer higher margins compared to brand-name items. Furthermore, the company may engage in promotional partnerships with suppliers, which can provide additional income through co-promotions or rebates. Its focus on customer service and community engagement helps drive customer loyalty and repeat business, contributing positively to its overall earnings.

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.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.36B	5.64B	5.89B	5.68B	4.99B	4.61B
Gross Profit	1.24B	1.30B	1.40B	1.42B	1.30B	1.20B
EBITDA	220.00M	282.98M	416.55M	500.58M	469.05M	391.86M
Net Income	56.42M	105.54M	210.81M	272.76M	249.73M	178.60M
Balance Sheet
Total Assets	2.55B	2.53B	2.47B	2.30B	2.02B	1.90B
Cash, Cash Equivalents and Short-Term Investments	336.09M	353.69M	328.54M	267.20M	75.31M	6.90M
Total Debt	548.15M	564.96M	595.47M	612.50M	632.04M	654.85M
Total Liabilities	953.29M	982.13M	1.01B	1.04B	1.04B	1.08B
Stockholders Equity	1.59B	1.55B	1.46B	1.26B	983.26M	819.33M
Cash Flow
Free Cash Flow	8.25M	51.66M	92.82M	219.89M	165.70M	227.35M
Operating Cash Flow	167.46M	262.52M	266.41M	339.50M	306.30M	350.12M
Investing Cash Flow	-154.58M	-206.18M	-170.10M	-111.99M	-127.98M	-117.35M
Financing Cash Flow	-31.55M	-31.18M	-34.97M	-30.62M	-114.90M	-267.98M

Ingles Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 65.47 is above the 20-day moving average (MA) of 63.74, above the 50-day MA of 63.86, and above the 200-day MA of 64.40, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMKTA.

Ingles Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLGEA	72 Outperform	$469.02M	9.09	11.87%	2.84%	3.94%	12.50%
NGVC	70 Outperform	$890.85M	20.66	23.58%	1.16%	8.51%	40.83%
WMK	67 Neutral	$1.74B	17.47	7.86%	1.92%	2.49%	15.99%
GO	63 Neutral	$1.80B	225.98	0.68%	―	8.47%	-85.17%
Sector *	53 Neutral	C$5.35B	6.46	11.80%	3.30%	3.80%	-1.28%
IMKTA	52 Neutral	$1.19B	21.62	3.58%	1.01%	-7.96%	-64.67%
DNUT	50 Neutral	$595.78M	238.55	-49.24%	3.95%	-11.55%	-757.68%

Ingles Markets Corporate Events

Ingles Markets Reports Decline in Q3 2025 Sales

Ingles Markets reported a decrease in net sales and net income for the third quarter and first nine months of fiscal 2025 compared to the same periods in 2024. Net sales for the third quarter were $1.35 billion, down from $1.39 billion in 2024, while net income fell to $26.2 million from $31.7 million. For the nine-month period, net sales totaled $3.97 billion, a decline from $4.24 billion, with net income dropping to $57.9 million from $107.0 million. Despite these declines, the company maintained stable operating and administrative expenses and reduced interest expenses. Ingles Markets expects its financial resources to be sufficient for future capital expenditures and operational needs.