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IMKTA

Ingles Markets, Inc. – Supermarkets and Other Grocery (except Convenience) Stores
Ingles Markets, Incorporated is a leading supermarket chain with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Company supermarkets and unaffiliated customers.
Analysis Results
Intrinsic Value $1,166.44
Latest Price $84.46
Relative Value 93% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 25.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 25.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 266 254
2023 334 304
2024 418 363
2025 524 434
2026 658 520
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 19700 million. This corresponds to a present value of 14900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1870 million. Adding in the terminal value gives a total present value of 16700 million.

There are presently 14.4 million outstanding shares, so the intrinsic value per share is 1166.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,150,880,830
Current Cash 150,626,700
Current Liabilities 612,194,662
Current Debt 35,201,478
Non-Cash Working Capital (NCWC) 423,260,946
Change in NCWC 264,484,972
EBIT 680,203,430
Tax Provision 155,766,000
Depreciation and Amortization 234,207,316
Capital Expenditure -281,194,324
Unlevered Free Cash Flow 735,998,262
Current Assets 470,186,860
Current Cash 6,903,955
Current Liabilities 323,812,907
Current Debt 19,305,976
Non-Cash Working Capital (NCWC) 158,775,974
Change in NCWC -61,223,034
EBIT 276,502,727
Tax Provision 56,443,000
Depreciation and Amortization 116,282,239
Capital Expenditure -122,767,178
Unlevered Free Cash Flow 142,396,059
Current Assets 497,103,371
Current Cash 42,125,105
Current Liabilities 247,579,389
Current Debt 12,600,131
Non-Cash Working Capital (NCWC) 219,999,008
Change in NCWC -18,916,727
EBIT 148,140,748
Tax Provision 25,018,000
Depreciation and Amortization 112,520,100
Capital Expenditure -161,751,023
Unlevered Free Cash Flow 45,225,230
Current Assets 496,743,116
Current Cash 10,537,303
Current Liabilities 260,138,091
Current Debt 12,848,013
Non-Cash Working Capital (NCWC) 238,915,735
Change in NCWC 50,340,729
EBIT 124,095,255
Tax Provision -17,046,000
Depreciation and Amortization 113,082,675
Capital Expenditure -150,486,508
Unlevered Free Cash Flow 137,032,151
Current Assets 445,840,014
Current Cash 23,912,100
Current Liabilities 245,563,479
Current Debt 12,210,571
Non-Cash Working Capital (NCWC) 188,575,006
Change in NCWC 7,371,084
EBIT 126,448,144
Tax Provision 30,388,000
Depreciation and Amortization 110,929,378
Capital Expenditure -127,695,650
Unlevered Free Cash Flow 71,450,841
Current Assets 418,487,439
Current Cash 5,679,509
Current Liabilities 241,604,637
Current Debt 10,000,629
Non-Cash Working Capital (NCWC) 181,203,922
Change in NCWC -2,994,946
EBIT 129,810,547
Tax Provision 30,445,000
Depreciation and Amortization 106,587,686
Capital Expenditure -137,642,132
Unlevered Free Cash Flow 49,065,260
Current Assets 432,296,094
Current Cash 7,505,040
Current Liabilities 253,243,507
Current Debt 12,651,321
Non-Cash Working Capital (NCWC) 184,198,868
Change in NCWC 17,154,817
EBIT 136,990,787
Tax Provision 35,105,000
Depreciation and Amortization 102,876,964
Capital Expenditure -104,055,949
Unlevered Free Cash Flow 102,054,517
Current Assets 413,917,298
Current Cash 8,613,628
Current Liabilities 250,748,019
Current Debt 12,488,400
Non-Cash Working Capital (NCWC) 167,044,051
Change in NCWC -18,334,764
EBIT 122,519,301
Tax Provision 28,350,000
Depreciation and Amortization 97,663,587
Capital Expenditure -108,338,402
Unlevered Free Cash Flow 49,970,281
Current Assets 434,540,068
Current Cash 16,844,007
Current Liabilities 251,274,007
Current Debt 18,956,761
Non-Cash Working Capital (NCWC) 185,378,815
Change in NCWC 20,081,825
EBIT 121,312,471
Tax Provision 5,447,000
Depreciation and Amortization 94,889,139
Capital Expenditure -101,453,001
Unlevered Free Cash Flow 109,650,698
Current Assets 426,203,869
Current Cash 4,683,410
Current Liabilities 306,151,733
Current Debt 49,928,264
Non-Cash Working Capital (NCWC) 165,296,990
Change in NCWC 44,473,758
EBIT 123,176,817
Tax Provision 23,903,000
Depreciation and Amortization 90,530,952
Capital Expenditure -180,628,852
Unlevered Free Cash Flow 33,834,610

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