ALBERTSONS COS INC - CLASS A (ACI) Stock Fundamental Analysis
NYSE:ACI - US0130911037 - Common Stock
19.46 USD
+0.2 (+1.04%)
19.47 USD
+0.01 (+0.05%)
We assign a fundamental rating of 4 out of 10 to ACI. ACI was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. While ACI is still in line with the averages on profitability rating, there are concerns on its financial health. ACI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ACI had positive earnings in the past year.
In the past year ACI had a positive cash flow from operations.
Each year in the past 5 years ACI has been profitable.
In the past 5 years ACI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.61%, ACI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ACI has a Return On Equity of 29.60%. This is amongst the best in the industry. ACI outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.98%, ACI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACI is above the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 29.6% | ||
| ROIC | 8.98% |
ROA(3y)4.38%
ROA(5y)4.18%
ROE(3y)49.5%
ROE(5y)41.49%
ROIC(3y)10.33%
ROIC(5y)9.71%
1.3 Margins
ACI has a Profit Margin (1.18%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ACI has grown nicely.
Looking at the Operating Margin, with a value of 2.38%, ACI is in line with its industry, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ACI has grown nicely.
ACI has a Gross Margin of 27.47%. This is comparable to the rest of the industry: ACI outperforms 60.00% of its industry peers.
ACI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.38% | ||
| PM (TTM) | 1.18% | ||
| GM | 27.47% |
OM growth 3Y-9.5%
OM growth 5Y10.36%
PM growth 3Y-12.6%
PM growth 5Y9.83%
GM growth 3Y-1.34%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACI is still creating some value.
The number of shares outstanding for ACI remains at a similar level compared to 1 year ago.
ACI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that ACI is not in any danger for bankruptcy at the moment.
ACI has a Altman-Z score of 3.60. This is comparable to the rest of the industry: ACI outperforms 42.50% of its industry peers.
The Debt to FCF ratio of ACI is 15.63, which is on the high side as it means it would take ACI, 15.63 years of fcf income to pay off all of its debts.
ACI has a Debt to FCF ratio of 15.63. This is in the lower half of the industry: ACI underperforms 67.50% of its industry peers.
ACI has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
ACI's Debt to Equity ratio of 2.17 is on the low side compared to the rest of the industry. ACI is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 15.63 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.18
WACC7.62%
2.3 Liquidity
ACI has a Current Ratio of 0.82. This is a bad value and indicates that ACI is not financially healthy enough and could expect problems in meeting its short term obligations.
ACI has a Current ratio of 0.82. This is amonst the worse of the industry: ACI underperforms 80.00% of its industry peers.
ACI has a Quick Ratio of 0.82. This is a bad value and indicates that ACI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.18, ACI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for ACI have decreased strongly by -14.89% in the last year.
ACI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.36% yearly.
The Revenue has been growing slightly by 1.95% in the past year.
ACI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.18% yearly.
EPS 1Y (TTM)-14.89%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.54%
3.2 Future
The Earnings Per Share is expected to decrease by -1.39% on average over the next years.
Based on estimates for the next years, ACI will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y-9.5%
EPS Next 2Y-1.64%
EPS Next 3Y1.48%
EPS Next 5Y-1.39%
Revenue Next Year3.99%
Revenue Next 2Y2.32%
Revenue Next 3Y2.23%
Revenue Next 5Y1.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.73, which indicates a very decent valuation of ACI.
ACI's Price/Earnings ratio is rather cheap when compared to the industry. ACI is cheaper than 90.00% of the companies in the same industry.
ACI is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
ACI is valuated reasonably with a Price/Forward Earnings ratio of 8.60.
Based on the Price/Forward Earnings ratio, ACI is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, ACI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than ACI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACI indicates a somewhat cheap valuation: ACI is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
The decent profitability rating of ACI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.64%
EPS Next 3Y1.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, ACI has a reasonable but not impressive dividend return.
ACI's Dividend Yield is rather good when compared to the industry average which is at 1.93. ACI pays more dividend than 95.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ACI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
ACI has been paying a dividend for over 5 years, so it has already some track record.
ACI has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
32.62% of the earnings are spent on dividend by ACI. This is a low number and sustainable payout ratio.
DP32.62%
EPS Next 2Y-1.64%
EPS Next 3Y1.48%
19.46
+0.2 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners62.67%
Inst Owner Change-0.77%
Ins Owners0.94%
Ins Owner Change0.57%
Market Cap10.89B
Analysts73.08
Price Target24.9 (27.95%)
Short Float %4.72%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP32.62%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.32%
Min EPS beat(2)2.13%
Max EPS beat(2)12.51%
EPS beat(4)4
Avg EPS beat(4)6.78%
Min EPS beat(4)2.13%
Max EPS beat(4)12.51%
EPS beat(8)7
Avg EPS beat(8)7.18%
EPS beat(12)11
Avg EPS beat(12)10.05%
EPS beat(16)15
Avg EPS beat(16)13.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)-0.39%
Revenue beat(8)1
Avg Revenue beat(8)-0.78%
Revenue beat(12)3
Avg Revenue beat(12)-0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.29%
PT rev (1m)-0.12%
PT rev (3m)4.5%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-16.09%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.6 | ||
| P/S | 0.13 | ||
| P/FCF | 21.73 | ||
| P/OCF | 4.4 | ||
| P/B | 3.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.96 |
EPS(TTM)2.23
EY11.46%
EPS(NY)2.26
Fwd EY11.63%
FCF(TTM)0.9
FCFY4.6%
OCF(TTM)4.42
OCFY22.71%
SpS144.69
BVpS5.76
TBVpS-0.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 29.6% | ||
| ROCE | 10.35% | ||
| ROIC | 8.98% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 11.18% | ||
| OM | 2.38% | ||
| PM (TTM) | 1.18% | ||
| GM | 27.47% | ||
| FCFM | 0.62% |
ROA(3y)4.38%
ROA(5y)4.18%
ROE(3y)49.5%
ROE(5y)41.49%
ROIC(3y)10.33%
ROIC(5y)9.71%
ROICexc(3y)10.53%
ROICexc(5y)10.33%
ROICexgc(3y)13.14%
ROICexgc(5y)12.88%
ROCE(3y)11.9%
ROCE(5y)11.19%
ROICexcg growth 3Y-10.83%
ROICexcg growth 5Y15.23%
ROICexc growth 3Y-9.97%
ROICexc growth 5Y15.08%
OM growth 3Y-9.5%
OM growth 5Y10.36%
PM growth 3Y-12.6%
PM growth 5Y9.83%
GM growth 3Y-1.34%
GM growth 5Y-0.35%
F-Score5
Asset Turnover3.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 15.63 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 72.16% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.1% | ||
| Profit Quality | 52.53% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.62%
ROIC/WACC1.18
Cap/Depr(3y)93.19%
Cap/Depr(5y)96.24%
Cap/Sales(3y)2.58%
Cap/Sales(5y)2.46%
Profit Quality(3y)61.51%
Profit Quality(5y)120.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.89%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-16.67%
EPS Next Y-9.5%
EPS Next 2Y-1.64%
EPS Next 3Y1.48%
EPS Next 5Y-1.39%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.54%
Revenue Next Year3.99%
Revenue Next 2Y2.32%
Revenue Next 3Y2.23%
Revenue Next 5Y1.9%
EBIT growth 1Y-11.97%
EBIT growth 3Y-6.06%
EBIT growth 5Y16.07%
EBIT Next Year78.73%
EBIT Next 3Y22.89%
EBIT Next 5Y11.46%
FCF growth 1Y-6.77%
FCF growth 3Y-26.75%
FCF growth 5Y11.81%
OCF growth 1Y-8.38%
OCF growth 3Y-8.62%
OCF growth 5Y7.08%