Ingles Markets Incorporated Stock Beneish M Score

IMKTA Stock  USD 73.34  0.86  1.16%   
This module uses fundamental data of Ingles Markets to approximate the value of its Beneish M Score. Ingles Markets M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Ingles Markets Piotroski F Score and Ingles Markets Altman Z Score analysis.
  
At present, Ingles Markets' Net Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 24.4 M, whereas Short and Long Term Debt Total is forecasted to decline to about 563.9 M. At present, Ingles Markets' PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 74.23, whereas Price To Sales Ratio is forecasted to decline to 0.18.
At this time, it appears that Ingles Markets is a possible manipulator. The earnings manipulation may begin if Ingles Markets' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Ingles Markets executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Ingles Markets' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.66
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

2.44

Focus
Expense Coverage

0.51

Focus
Gross Margin Strengs

1.04

Focus
Accruals Factor

0.51

Focus
Depreciation Resistance

1.4

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.03

Focus

Ingles Markets Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Ingles Markets' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables129.9 M123.7 M
Sufficiently Up
Slightly volatile
Total Revenue7.1 B6.8 B
Sufficiently Up
Slightly volatile
Total AssetsB2.8 B
Sufficiently Up
Slightly volatile
Total Current Assets1.2 B1.1 B
Sufficiently Up
Slightly volatile
Non Current Assets Total916.9 M1.7 B
Way Down
Slightly volatile
Property Plant Equipment1.2 B1.6 B
Way Down
Slightly volatile
Depreciation And Amortization68.9 M133.4 M
Way Down
Slightly volatile
Selling General Administrative680.3 M1.3 B
Way Down
Slightly volatile
Total Current Liabilities224.3 M380.1 M
Way Down
Slightly volatile
Non Current Liabilities Total632.3 M787 M
Significantly Down
Very volatile
Net Debt519.7 M307 M
Way Up
Slightly volatile
Short Term Debt24.4 M23.2 M
Sufficiently Up
Very volatile
Long Term Debt753.9 M612.5 M
Fairly Up
Slightly volatile
Operating Income353 M336.1 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities321.7 M306.4 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.280.27
Sufficiently Up
Slightly volatile

Ingles Markets Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Ingles Markets' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ingles Markets in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Ingles Markets' degree of accounting gimmicks and manipulations.

About Ingles Markets Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Total Assets

2.99 Billion

At present, Ingles Markets' Total Assets are projected to increase significantly based on the last few years of reporting.

Ingles Markets Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Ingles Markets. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables81.4M95.1M97.2M107.6M123.7M129.9M
Total Revenue4.6B5.0B5.7B5.9B6.8B7.1B
Total Assets1.9B2.0B2.3B2.5B2.8B3.0B
Total Current Assets470.2M575.4M838.1M952.6M1.1B1.2B
Net Debt598.6M519.2M304.7M266.9M307.0M519.7M
Short Term Debt27.7M17.6M17.6M25.8M23.2M24.4M
Long Term Debt586.2M571.9M554.3M532.6M612.5M753.9M
Operating Income162.0M226.0M263.6M292.3M336.1M353.0M
Investments(117.4M)(5M)(112.0M)(170.1M)(153.1M)(160.7M)

Ingles Markets ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ingles Markets' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ingles Markets' managers, analysts, and investors.
Environmental
Governance
Social

About Ingles Markets Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ingles Markets Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ingles Markets using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ingles Markets Incorporated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Ingles Markets offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ingles Markets' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ingles Markets Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ingles Markets Incorporated Stock:
Check out Ingles Markets Piotroski F Score and Ingles Markets Altman Z Score analysis.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ingles Markets. If investors know Ingles will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ingles Markets listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.34)
Dividend Share
0.66
Earnings Share
8.3
Revenue Per Share
306.779
Quarterly Revenue Growth
(0.03)
The market value of Ingles Markets is measured differently than its book value, which is the value of Ingles that is recorded on the company's balance sheet. Investors also form their own opinion of Ingles Markets' value that differs from its market value or its book value, called intrinsic value, which is Ingles Markets' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ingles Markets' market value can be influenced by many factors that don't directly affect Ingles Markets' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ingles Markets' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ingles Markets is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ingles Markets' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.