Thursday, August 9, 2007

Ingles Markets Incorporated

Ingles Markets Incorporated is a NASDAQ listed security that has been trading in a range between $20.66 and $42.72 over the past year. With 24,511,260 shares outstanding, a recent price of $31.69 gives a total market capitalization of $758,868,587. While there are certainly larger companies, Ingles Markets Incorporated has definitely earned its place in the pack. Last year, Ingles Markets Incorporated created $2.01 in earnings for every share outstanding.

Ingles Markets Incorporated is currently priced by the market at 15.80 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share in excess of $1 a share, Ingles Markets Incorporated could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.