Ingles Markets, Inc. (IMKTA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sprouts Farmers Market, Inc.

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Ingles Markets, Inc.

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Albertsons Cos., Inc.

Grocery Outlet Holding Corp.

The Kroger Co.

Weis Markets, Inc.

Why is Ingles Markets, Inc. ?

High Management Efficiency with a high ROCE of 16.97%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.53

The company has declared Negative results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 167.46 MM
NET PROFIT(HY) At USD 41.3 MM has Grown at -35.08%
ROCE(HY) Lowest at 3.58%

With ROCE of 4.67%, it has a very expensive valuation with a 0.76 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.27%, its profits have fallen by -64.8%

High Institutional Holdings at 99.22%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.29% over the previous quarter.

Underperformed the market in the last 1 year

The stock has generated a return of 2.27% in the last 1 year, much lower than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ingles Markets, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ingles Markets, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ingles Markets, Inc.

5.13%

0.38

25.33%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.62%

EBIT Growth (5y)

-19.25%

EBIT to Interest (avg)

11.53

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

2.77

Tax Ratio

23.37%

Dividend Payout Ratio

11.88%

Pledged Shares

Institutional Holding

99.22%

ROCE (avg)

16.97%

ROE (avg)

17.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.72

EV to EBIT

16.19

EV to EBITDA

6.51

EV to Capital Employed

0.76

EV to Sales

0.25

PEG Ratio

Dividend Yield

83.16%

ROCE (Latest)

4.67%

ROE (Latest)

3.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 11.96%

INTEREST COVERAGE RATIO(Q)

Highest at 1,397.76

RAW MATERIAL COST(Y)

Fallen by -2.87% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 13.31 %

PRE-TAX PROFIT(Q)

At USD 35.25 MM has Grown at 74.46%

NET PROFIT(Q)

At USD 26.2 MM has Grown at 69.18%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 167.46 MM

NET PROFIT(HY)

At USD 41.3 MM has Grown at -35.08%

ROCE(HY)

Lowest at 3.58%

Here's what is working for Ingles Markets, Inc.

Interest Coverage Ratio

Highest at 1,397.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend Payout Ratio

Highest at 11.96% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Pre-Tax Profit

At USD 35.25 MM has Grown at 74.46%

over average net sales of the previous four periods of USD 20.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 26.2 MM has Grown at 69.18%

over average net sales of the previous four periods of USD 15.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 13.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ingles Markets, Inc.

Operating Cash Flow

Lowest at USD 167.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)