NEW YORK ( TheStreet) -- Ingles Markets (Nasdaq: IMKTA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Highlights from the ratings report include:
  • IMKTA's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $26.08 million or 34.97% when compared to the same quarter last year. In addition, INGLES MARKETS INC has also modestly surpassed the industry average cash flow growth rate of 33.88%.
  • INGLES MARKETS INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, INGLES MARKETS INC increased its bottom line by earning $1.29 versus $1.17 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income increased by 9.0% when compared to the same quarter one year prior, going from $11.67 million to $12.73 million.

Ingles Markets, Incorporated operates a supermarket chain in the southeast United States. The company has a P/E ratio of 9.7, below the average retail industry P/E ratio of 10 and below the S&P 500 P/E ratio of 17.7. Ingles Markets has a market cap of $192.9 million and is part of the services sector and retail industry. Shares are down 21.9% year to date as of the close of trading on Monday.

You can view the full Ingles Markets Ratings Report or get investment ideas from our investment research center.

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