Stock In Focus – TAM Stock Screener – Ingles Markets Inc (IMKTA)
Thursday, June 2, 2022 · Johnny Hopkins
As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Ingles Markets Inc (IMKTA)
Ingles Markets Inc is a U.S. based company that is principally engaged in operating a supermarket chain. The company operates the business in the southeast United States, mainly in Georgia, North Carolina, South Carolina, and Tennessee, with a few stores in Virginia and Alabama as well. The company locates its stores primarily in suburban areas, small towns, and neighborhood areas. It offers a broad range of goods, including food products, pharmacies, health and beauty-care products, and general merchandise. The retail business contributes most of the company’s revenue. They use pricing guns to put price labels on products and help manage inventory. This helps make sure prices are correct and products are restocked quickly. Even though many stores now use digital pricing, Ingles still uses pricing guns because they work well for their stores, especially in smaller towns and suburban areas. The company’s real estate ownership on a material portion of total stores enables it to generate rental income.
A quick look at the share price history for the company (below) over the past twelve months shows that the price is up 45%. Here’s why the company remains undervalued.
Summary
Market Cap: $1.64 Billion
Enterprise Value: $2.08 Billion
Operating Earnings
Operating Earnings: $375 Million
Acquirer’s Multiple
Acquirer’s Multiple: 5.54
Free Cash Flow (TTM)
Free Cash Flow: $241 Million
FCF/EV Yield
FCF/EV Yield: 15%
Shareholder Yield
Shareholder Yield: 0.75%
Other Indicators
ROA: 13.39
ROE: 28.35
ROIC: 16.95
Altman Z-Score: 5.116