Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: 1.09%
• Average Volume (3M): 117.31K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.26
• Revenue Growth: -7.79%
• EPS Growth: -64.85%
• Country: US
• Employees: 11,072
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Grocery Stores
• EPS (TTM): 0.80
• Shares Outstanding: 14,547,280
• 10 Day Avg. Volume: 110,103
• 30 Day Avg. Volume: 117,309
• PEG Ratio: 0.45
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.91
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 1.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• 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 Business Overview & Revenue Model

Company Description

Ingles 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 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 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
5.41B	5.64B	5.89B	5.68B	4.99B	4.61B
	Gross Profit
1.24B	1.30B	1.40B	1.42B	1.30B	1.20B
	EBIT
84.77M	147.14M	292.30M	263.62M	225.97M	161.96M
	EBITDA
226.42M	282.98M	416.55M	508.51M	477.06M	400.95M
	Net Income Common Stockholders
61.94M	105.54M	210.81M	272.76M	249.73M	178.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
297.33M	353.69M	328.54M	267.20M	75.31M	6.90M
	Total Assets
2.51B	2.56B	2.47B	2.30B	2.02B	1.90B
	Total Debt
553.09M	564.96M	595.47M	571.91M	589.51M	605.50M
	Net Debt
255.76M	211.27M	266.93M	304.71M	519.20M	598.60M
	Total Liabilities
934.61M	982.13M	1.01B	1.04B	1.04B	1.08B
	Stockholders Equity
1.57B	1.55B	1.46B	1.26B	983.26M	819.33M
Cash Flow		Free Cash Flow
21.48M	51.66M	92.82M	219.89M	165.70M	227.35M
	Operating Cash Flow
195.96M	262.52M	266.41M	339.50M	306.30M	350.12M
	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 Price: 60.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLGEA	79 Outperform	$495.24M	9.56	11.87%	2.69%	3.94%	12.50%
NGVC	70 Outperform	$953.36M	23.35	23.38%	1.16%	9.36%	43.17%
Sector *	65 Neutral	$8.89B	14.91	4.67%	6.16%	3.60%	-2.89%
WMK	64 Neutral	$1.98B	18.53	7.54%	1.84%	1.76%	6.01%
IMKTA	61 Neutral	$1.13B	18.58	4.00%	1.09%	-7.79%	-64.85%
GO	60 Neutral	$1.29B	80.94	1.43%	―	10.37%	-73.84%
DNUT	54 Neutral	$466.28M	238.55	-1.92%	5.13%	-6.55%	53.81%

Ingles Markets Corporate Events

Ingles Markets Reports Decline in Q2 2025 Sales

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.