- Ingles reported another stellar quarter, with record 5-year revenues and EPS YoY growth for the quarter.
- Our price target is $61.93, or 48% upside on strong and steady earnings.
- They have deleveraged their balance sheet from $852 million in FY19 to current fiscal year-end $605 million - they are focused fully on reducing their debt.
- Trading at a very low P/E of 7.4x on steady-state FY09/2022e relative to much more expensive industry comps.
- Beneficiary of the Covid-19 pandemic, and we expect 1H of FY21 to still have cases, which will help supermarkets as people stay at home.
For further details see:
Ingles: Record Earnings, Undervalued 7.4x P/E And Rapidly Paying Off Debt