Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 1%
• Average Volume (3M): 105.05K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.29
• Revenue Growth: -7.79%
• EPS Growth: -64.85%
• Country: US
• Employees: 11,072
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Grocery Stores
• EPS (TTM): 0.80
• Shares Outstanding: 14,547,280
• 10 Day Avg. Volume: 96,766
• 30 Day Avg. Volume: 105,053
• PEG Ratio: -0.95
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.58
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $67.00
• Price Target Upside: 1.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $67.00 ▲(1.01%Upside)

Ingles Markets' overall score reflects its financial stability and prudent management practices, but is hindered by declining sales and profit margins. The technical analysis suggests a lack of strong momentum, and the valuation metrics indicate average market perception. The overall sentiment is cautious, given the negative outlook on sales and income.

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 makes money primarily through the sale of grocery and non-grocery items in its supermarkets. The company generates revenue from a variety of product categories including perishable goods, grocery items, non-food products, and pharmacy sales. A significant portion of its earnings also comes from offering fuel services at its fuel stations located in many of its store locations. Ingles Markets benefits from economies of scale due to its extensive regional presence, which supports competitive pricing and customer loyalty. Revenue is further bolstered through strategic partnerships with suppliers and manufacturers, allowing the company to offer promotions and exclusive deals to customers. Additionally, Ingles Markets' real estate holdings, including ownership of many of its store locations, contribute to its financial stability and profitability.

Ingles Markets Financial Statement Overview

Summary

Ingles Markets shows financial stability with a strong equity base and conservative leverage, but faces challenges in revenue and profit growth due to declining margins and negative revenue growth. Despite robust cash flow generation, the negative 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	5.64B	5.89B	5.68B	4.99B	4.61B
Gross Profit	1.30B	1.40B	1.42B	1.30B	1.20B
EBITDA	282.98M	416.55M	508.51M	477.06M	400.95M
Net Income	105.54M	210.81M	272.76M	249.73M	178.60M
Balance Sheet
Total Assets	2.56B	2.47B	2.30B	2.02B	1.90B
Cash, Cash Equivalents and Short-Term Investments	353.69M	328.54M	267.20M	75.31M	6.90M
Total Debt	564.96M	595.47M	571.91M	589.51M	605.50M
Total Liabilities	982.13M	1.01B	1.04B	1.04B	1.08B
Stockholders Equity	1.55B	1.46B	1.26B	983.26M	819.33M
Cash Flow
Free Cash Flow	51.66M	92.82M	219.89M	165.70M	227.35M
Operating Cash Flow	262.52M	266.41M	339.50M	306.30M	350.12M
Investing Cash Flow	-206.18M	-170.10M	-111.99M	-127.98M	-117.35M
Financing Cash Flow	-31.18B	-34.97M	-30.62M	-114.90M	-267.98M

Ingles Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.33
• 50DMA: Positive
• 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 Positive. The current price of 66.33 is above the 20-day moving average (MA) of 66.10, above the 50-day MA of 63.24, and above the 200-day MA of 64.30, indicating a bullish trend. The MACD of 1.16 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.87 is Neutral, 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	76 Outperform	$484.06M	9.52	11.87%	2.75%	3.94%	12.50%
WMK	69 Neutral	$2.08B	19.32	7.54%	1.76%	1.76%	6.01%
NGVC	67 Neutral	$913.20M	22.48	23.38%	1.16%	9.36%	43.17%
Sector *	65 Neutral	$27.20B	15.73	-4.29%	2.57%	1.03%	4.90%
IMKTA	65 Neutral	$1.23B	20.71	4.00%	1.00%	-7.79%	-64.85%
GO	58 Neutral	$1.37B	83.08	1.43%	―	10.37%	-73.84%
DNUT	54 Neutral	$736.15M	238.55	-1.92%	3.25%	-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.