IMKTA - Ingles Markets' Undervaluation Remains As Investors Get Startled By Slower Inflation
2024-06-14 23:55:56 ET
Summary
- Ingles Markets has reported revenue declines in H1/FY2024 as food inflation and gas prices have shown very low year-over-year inflation.
- The operating margin has also continued to fall back into a historical long-term average at quite a rapid pace.
- Real estate assets on IMKTA's balance sheet provide potential for shareholder value through a sale-and-leaseback or acquisition, but I believe such transactions to be unlikely.
- The valuation continues to show a significant undervaluation.
Ingles Markets ( IMKTA ) has reported two quarters of financials after my prior article on the company. Ingles Markets has started to report a tiny year-over-year decline in revenues along with weaker profitability as margins retract back to a more normalized level....
Ingles Markets' Undervaluation Remains As Investors Get Startled By Slower Inflation