Highlights

  • Ingles shows 84.15% one-year basic EPS growth, a P/E of 16.07 and PEG of 0.00.
  • Nine-month net income was $78.3 million, against $57.9 million a year earlier.
  • Net cash from operations was $189.2 million for nine months, against $94.2 million.
  • Total debt was $500.5 million at June 2026, against $518.0 million at June 2025.

Ingles Markets (NASDAQ:IMKTA) shares were trading at USD 84.37 on October 28, 2026, down 1.31%, alongside one-year basic EPS growth of 84.15%, a trailing twelve-month P/E of 16.07 and an expected-basis PEG of 0.00, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the Southeast supermarket chain received a $5.8 million final settlement of Hurricane Helene inventory loss claims in April, opened a new North Carolina store on June 17, 2026, and reported fiscal third quarter 2026 net income of $25.9 million in early August.

Based in Black Mountain, North Carolina, and incorporated in North Carolina, Ingles operates 195 supermarkets in North Carolina, Georgia, South Carolina, Tennessee, Virginia and Alabama, excluding three stores temporarily closed after Hurricane Helene. Its stores sell grocery, perishable and frozen foods, pharmacy and general merchandise, with fuel centers. Its primary business segment is retail grocery sales, with an All Other segment covering fluid dairy and shopping center rentals. Its fiscal year ends on the last Saturday in September.

Growth: Fiscal Third Quarter Earnings, Sales and Margins

Net income was $25.9 million for the third quarter of fiscal 2026 against $26.2 million a year earlier, and $78.3 million for the nine months against $57.9 million. Class A basic and diluted earnings per share were $1.39 and $1.36 for the quarter, against $1.41 and $1.38, and $4.21 and $4.12 for the nine months, against $3.11 and $3.05.

Net sales rose 1.6% to $1.37 billion in the quarter and 2.1% to $4.05 billion for the nine months. Excluding fuel, total grocery comparable store sales decreased 3.1% in the quarter and increased 0.4% for the nine months.

Gross profit was $332.4 million in the quarter and $992.3 million for the nine months, up 5.6%, or 24.5% of sales against 23.7%. Both periods included $5.8 million of Hurricane Helene insurance proceeds.

Valuation: P/E of 16.07, PEG of 0.00 and Cash Generation

The P/E ratio of 16.07 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. The filing reports net cash from operations of $189.2 million for the nine months against $94.2 million, which the company attributed to higher net income and lower working capital needs.

Total stockholders' equity was $1,684,791,883 at June 27, 2026, against $1,615,931,577 at September 27, 2025. Net income was 1.9% of net sales for the nine months against 1.5%.

Capital and Balance Sheet: Debt, Dividends and Capital Expenditures

Cash and cash equivalents were $455,086,566 at June 27, 2026, against $366,245,951 at September 27, 2025. Total debt was $500.5 million against $518.0 million at June 2025. Debt includes $350.0 million of 4.00% senior notes due 2031 and $40.9 million of bonds outstanding. The company has a $150.0 million line of credit maturing in June 2030 with no other borrowings outstanding, and it stated it was in compliance with its covenants.

The company paid quarterly dividends of $0.165 per Class A share and $0.15 per Class B share, including on July 16, 2026, an annual rate of $0.66 and $0.60 per share. It expects to continue regular quarterly dividends, subject to Board decisions.

Capital expenditures were $76.4 million for the nine months, covering a new store that opened in June 2026, restoration of closed stores, remodels, technology and fleet upgrades.

Disclosed Risks and Outlook

Operating and administrative expenses rose 2.7% to $298.0 million in the quarter, or 21.8% of sales against 21.5%, with salaries and wages up $3.7 million, which the company linked to the cost of attracting and retaining associates in a market with wage inflation. Income from operations was 2.5% of sales in the quarter against 2.8%.

Three stores remain temporarily closed from damage sustained in Hurricane Helene. The company is party to ordinary course legal proceedings, which management does not expect to materially affect its financial position, results of operations or cash flows. Its debt agreements carry cross-default provisions, and it noted that financing may not be available on acceptable terms.

The company currently plans fiscal 2026 capital expenditures of about $120 million to $130 million and expects annual spending in that range going forward, including reopening the closed stores. It believes its resources will meet planned capital expenditures and working capital requirements for the foreseeable future.