Ingles Markets (IMKTA) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 0.87%
• Average Volume (3M): 93.40K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.30
• 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: 85,661
• 30 Day Avg. Volume: 93,402
• 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: 1.03
• 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 (IMKTA) is a regional grocery store chain based in the southeastern United States, primarily serving customers in North Carolina, South Carolina, Georgia, Tennessee, and Virginia. The company operates a network of supermarkets that offer a wide range of products including fresh produce, meat, dairy, bakery items, and grocery essentials. In addition to its retail operations, Ingles Markets also provides pharmacy services and fuel centers, enhancing its value proposition to customers and fostering loyalty in the communities it serves.

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: Positive
• Last Price: 77.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 77.29 is above the 20-day moving average (MA) of 74.47, above the 50-day MA of 72.49, and above the 200-day MA of 65.85, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 53.21 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
IMKTA	72 Outperform	$1.42B	17.31	5.29%	0.87%	-5.42%	-20.80%
ACI	68 Neutral	$9.81B	10.56	32.04%	3.34%	2.08%	-1.63%
VLGEA	67 Neutral	$464.85M	9.11	―	2.89%	3.88%	7.65%
WMK	67 Neutral	$1.63B	17.33	7.22%	2.02%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NGVC	58 Neutral	$623.66M	13.59	24.02%	1.88%	7.19%	35.90%
GO	45 Neutral	$1.10B	―	-0.37%	―	7.22%	-108.99%

Ingles Markets Corporate Events

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.

The most recent analyst rating on (IMKTA) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Ingles Markets stock, see the IMKTA Stock Forecast page.

Ingles Markets Reports Decline in Sales and Income

Ingles Markets, Incorporated is a prominent grocery retailer operating 197 supermarkets across six southeastern states in the U.S., with its headquarters in Asheville, North Carolina. The company also manages neighborhood shopping centers and a fluid dairy facility that serves both its supermarkets and other customers.

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.