IMKTA

Ingles Markets

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Defensive

industry

Grocery Stores

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/14/26

Business Summary

Ingles Markets operates a regional grocery store network generating cash through high-volume, low-margin food retailing. The model is built on recurring consumer demand for staples, producing steady revenue reflected in its 0.3 Price/Sales multiple. Its moat is primarily geographic density and operational scale within its footprint, allowing purchasing efficiencies and consistent store traffic. Cash flow is driven by disciplined cost control, inventory turnover, and maintaining modest operating margins that, when combined with financial stability metrics like a 4.7 Altman Z-Score, support durable though unspectacular returns.

 


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VALUATION

P/E

18.8

Market Cap ($M USD)

$1,789

Forward P/E

-

PEG

-

PRICE TO SALES

0.3

PRICE TO BOOK

1.1

EV / EBITDA

7.4

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.70%

Annual Payout

$0.66

Payout Ratio

12.90%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

0.00%

Financial Health & Profitability

Earnings Per Share

$5.12

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

5.80%

FREE CASH FLOW

Operating Margin

3.00%

Debt-to-Equity

0.3

Piotroski F-Score

8

Altman Z-Score

4.7

Return on Invested Capital (ROIC)

5.30%

Current Ratio

3.4

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 18.8x earnings with a Price/Sales of just 0.3 and Price/Book of 1.1, IMKTA screens as a statistically cheap defensive operator rather than a growth compounder. The absence of a Forward P/E and PEG Forward removes visibility into near-term earnings acceleration, and the projected EPS next year of $5.12 versus current EPS of 7.4 implies compression rather than growth. However, the Altman Z-Score of 4.7 signals very low bankruptcy risk, and a Piotroski F-Score of 8 confirms strong underlying financial quality. This is not a high-growth story; it’s a balance-sheet-stable, cash-generating grocer trading at a muted sales multiple, priced for stagnation rather than expansion.

AI Exposure / Tech Reliance

As a Consumer Defensive grocery operator, IMKTA operates in a sector where AI adoption will likely center on inventory optimization, pricing analytics, and supply chain efficiency rather than disruption risk. With a 5.80% operating margin, even small efficiency gains from automation or data-driven pricing could materially lift profitability. The business is operationally intensive but structurally resilient to technological obsolescence.

The Bull Case

A value or GARP investor buys this because the fundamentals are quietly strong. A Piotroski F-Score of 8 signals improving financial health across profitability, leverage, and efficiency factors, while an Altman Z-Score of 4.7 confirms financial stability. ROIC at 5.30% exceeds many low-margin retail peers, and a 3.4 current ratio provides substantial liquidity cushion. With a Price/Sales of 0.3 and Price/Book of 1.1, investors are paying very little for a company generating 5.80% operating margins in a defensive industry with steady demand characteristics. The market cap of $1,789M for a company producing 7.4 in EPS suggests the market is valuing it conservatively despite solid balance sheet signals.

The Bear Case

The bear case starts with leverage and earnings trajectory. Debt/Equity at 3.00% indicates reliance on debt capital, and with EPS projected to fall to $5.12 next year from 7.4, earnings contraction is a real concern. The lack of Forward P/E and PEG Forward removes visibility into valuation against growth, which is troubling given that Sales Growth Next Year is not provided. Operating margins at 5.80% leave limited room for error in a price-competitive grocery environment, and the minimal TTM Yield of 0.3 combined with a Dividend 5-Year Avg of 0 offers little income cushion. This is a low-margin, low-growth operator where even minor execution missteps could compress already thin profitability.

Market Sentiment & Smart Money

Short Interest %

8.80%

Analyst Consensus

1

Average Analyst Price Target

-

Institutional Ownership %

95.10%

1-Year Beta

0.26

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

98.40%

Distance to 52-Week Low

159.20%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.