NasdaqGS:IMKT.A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Ingles Markets, Incorporated operates a chain of supermarkets in the southeast United States.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Ingles Markets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMKT.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

IMKT.A

1.8%

US Consumer Retailing

3.0%

US Market


1 Year Return

22.3%

IMKT.A

14.6%

US Consumer Retailing

15.8%

US Market

Return vs Industry: IMKT.A exceeded the US Consumer Retailing industry which returned 13.9% over the past year.

Return vs Market: IMKT.A exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

IMKT.AIndustryMarket
7 Day1.0%1.8%3.0%
30 Day0.5%5.0%6.0%
90 Day-6.4%6.8%16.4%
1 Year24.3%22.3%16.4%14.6%18.4%15.8%
3 Year59.5%50.2%53.5%45.0%44.8%35.4%
5 Year-18.0%-25.2%62.6%46.3%75.7%56.7%

Price Volatility Vs. Market

How volatile is Ingles Markets's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ingles Markets undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMKT.A ($40.64) is trading below our estimate of fair value ($444.73)

Significantly Below Fair Value: IMKT.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMKT.A is good value based on its PE Ratio (8x) compared to the US Consumer Retailing industry average (22.1x).

PE vs Market: IMKT.A is good value based on its PE Ratio (8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IMKT.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IMKT.A is good value based on its PB Ratio (1.2x) compared to the US Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Ingles Markets forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.9%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ingles Markets has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ingles Markets performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMKT.A has high quality earnings.

Growing Profit Margin: IMKT.A's current net profit margins (2.3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: IMKT.A's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: IMKT.A's earnings growth over the past year (28%) exceeds its 5-year average (11.3% per year).

Earnings vs Industry: IMKT.A earnings growth over the past year (28%) exceeded the Consumer Retailing industry 20.1%.


Return on Equity

High ROE: IMKT.A's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Ingles Markets's financial position?


Financial Position Analysis

Short Term Liabilities: IMKT.A's short term assets ($556.0M) exceed its short term liabilities ($294.9M).

Long Term Liabilities: IMKT.A's short term assets ($556.0M) do not cover its long term liabilities ($963.5M).


Debt to Equity History and Analysis

Debt Level: IMKT.A's debt to equity ratio (119.3%) is considered high.

Reducing Debt: IMKT.A's debt to equity ratio has reduced from 228.8% to 119.3% over the past 5 years.

Debt Coverage: IMKT.A's debt is well covered by operating cash flow (33.1%).

Interest Coverage: IMKT.A's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Ingles Markets's current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IMKT.A's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: IMKT.A's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: IMKT.A's dividends per share have been stable in the past 10 years.

Growing Dividend: IMKT.A's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.1%), IMKT.A's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.9yrs

Average board tenure


CEO

James Lanning (61 yo)

4.42yrs

Tenure

US$1,239,539

Compensation

Mr. James W. Lanning has been the Chief Executive Officer of Ingles Markets, Incorporated since March 25, 2016 and has been its President since March 2003. Mr. Lanning served as Chief Operating Officer of ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD1.24M) is below average for companies of similar size in the US market ($USD3.09M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
James Lanning
CEO, President4.42yrsUS$1.24m0.049%
$ 406.4k
Ronald Freeman
CFO, VP of Finance & Director15.25yrsUS$484.53k0.014%
$ 116.4k
John Lowden
Director2.33yrsUS$18.75kno data
Brenda Tudor
Independent Director5.67yrsUS$30.01k0.0015%
$ 12.2k
Robert Ingle
Chairman of the Board16.25yrsUS$1.12m26.99%
$ 222.2m
Laura Sharp
Director23.5yrsUS$20.00k0.56%
$ 4.6m
Fred Ayers
Independent Director14.5yrsUS$35.00k0.0023%
$ 18.9k
Ernest Ferguson
Independent Director5.67yrsUS$30.01k0.0012%
$ 10.1k

14.9yrs

Average Tenure

63yo

Average Age

Experienced Board: IMKT.A's board of directors are seasoned and experienced ( 14.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ingles Markets, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ingles Markets, Incorporated
  • Ticker: IMKT.A
  • Exchange: NasdaqGS
  • Founded: 1963
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$823.357m
  • Shares outstanding: 20.26m
  • Website: https://www.ingles-markets.com

Number of Employees


Location

  • Ingles Markets, Incorporated
  • PO Box 6676
  • Asheville
  • North Carolina
  • 28816
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMKT.ANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 1987

Biography

Ingles Markets, Incorporated operates a chain of supermarkets in the southeast United States. Its supermarkets offer various food products, including grocery, meat and dairy products, produce, frozen foods ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:58
End of Day Share Price2020/08/06 00:00
Earnings2020/03/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.