Ingles Markets, Incorporated (IMKTA)
Valuation Overview•Is Ingles Markets, Incorporated Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
IMKTA struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-2.1% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (2.7%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.3B | -5.4% | -2.1% | +3.0% | +3.5% | |
| EBITDA | $64.2M | — | -21.4% | — | — | |
| Net Income | $24.3M | -20.8% | -32.6% | — | +3.5% | |
| EPS (Diluted) | $1.28 | -20.9% | -32.6% | -13.0% | +4.1% | |
| Free Cash Flow | $67.1M | -23.4% | -43.5% | -29.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 24.5% | 23.6% | 24.4% | 24.5% |
| Operating Margin | 2.7% | 3.3% | 4.7% | 4.3% |
| Net Margin | 1.9% | 2.3% | 3.4% | 2.8% |
| FCF Margin | 2.8% | 1.1% | 2.1% | 1.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | — | $1.48 | — | ||
| Q4'25 | — | $1.35 | — | ||
| Q3'25 | — | $1.38 | — | ||
| Q2'25 | — | $0.80 | — | ||
| Q1'25 | — | $0.87 | — | ||
| Q4'24 | — | $-0.08 | — | ||
| Q3'24 | — | $1.67 | — | ||
| Q2'24 | — | $1.68 | — |
Total return is +44.1% (1Y), outperforming the benchmark by +19.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +26.0% | +16.7% | — |
| 1Y | +44.1% | +19.1% | +1.1% |
| 3YCAGR | +2.1% | -17.6% | +2.4% |
| 5YCAGR | +8.7% | -4.3% | +5.5% |
| 10YCAGR | +9.7% | -3.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ingles Markets, Incorporated (IMKTA) valuation, health, and returns.
Ingles Markets, Incorporated is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +47.1% upside to DCF intrinsic value of $128.65)
Ingles Markets, Incorporated has multiple valuation anchors: DCF Intrinsic Value: $128.65 | Peer Relative Fair Value: $149.90. A convergence of these signals offers higher conviction.
Ingles Markets, Incorporated displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of 4.2 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 5.0%.
Ingles Markets, Incorporated pays a 0.7% dividend yield, covered by a 15% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Ingles Markets, Incorporated's current growth trajectory is Decelerating. The company achieved -5.4% 1Y revenue growth and -20.9% 1Y EPS growth, compared to its 3Y revenue CAGR of -2.1%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Ingles Markets, Incorporated include: -11.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.11x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.