ALBERTSONS COS INC - CLASS A (ACI) Stock Fundamental Analysis
NYSE:ACI - New York Stock Exchange, Inc. - US0130911037 - Common Stock - Currency: USD
ACI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. ACI has an excellent profitability rating, but 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.
ACI had positive earnings in each of the past 5 years.
In the past 5 years ACI always reported a positive cash flow from operatings.
1.2 Ratios
ACI has a Return On Assets (3.58%) which is in line with its industry peers.
With an excellent Return On Equity value of 28.31%, ACI belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
The Return On Invested Capital of ACI (8.93%) is better than 75.61% of its industry peers.
ACI had an Average Return On Invested Capital over the past 3 years of 10.33%. This is above the industry average of 8.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 28.31% | ||
| ROIC | 8.93% |
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 (1.19%) which is in line with its industry peers.
ACI's Profit Margin has improved in the last couple of years.
The Operating Margin of ACI (2.50%) is comparable to the rest of the industry.
ACI's Operating Margin has improved in the last couple of years.
The Gross Margin of ACI (27.68%) is better than 63.41% of its industry peers.
In the last couple of years the Gross Margin of ACI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.5% | ||
| PM (TTM) | 1.19% | ||
| GM | 27.68% |
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
ACI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for ACI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.62 indicates that ACI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACI (3.62) is comparable to the rest of the industry.
The Debt to FCF ratio of ACI is 10.44, which is on the high side as it means it would take ACI, 10.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.44, ACI is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
ACI has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ACI (2.29) is worse than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.1
WACC8.13%
2.3 Liquidity
ACI has a Current Ratio of 0.90. 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's Current ratio of 0.90 is on the low side compared to the rest of the industry. ACI is outperformed by 78.05% of its industry peers.
A Quick Ratio of 0.22 indicates that ACI may have some problems paying its short term obligations.
ACI's Quick ratio of 0.22 is on the low side compared to the rest of the industry. ACI is outperformed by 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The earnings per share for ACI have decreased strongly by -19.03% in the last year.
The Earnings Per Share has been decreasing by -0.36% on average over the past years.
Looking at the last year, ACI shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
The Revenue has been growing slightly by 5.18% on average over the past years.
EPS 1Y (TTM)-19.03%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-14.81%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to grow by 0.71% 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 1.97% on average per year.
EPS Next Y-4.99%
EPS Next 2Y-0.9%
EPS Next 3Y0.71%
EPS Next 5Y0.71%
Revenue Next Year3.63%
Revenue Next 2Y2.15%
Revenue Next 3Y2.07%
Revenue Next 5Y1.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.28, the valuation of ACI can be described as very reasonable.
Based on the Price/Earnings ratio, ACI is valued cheaper than 92.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACI to the average of the S&P500 Index (24.95), we can say ACI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.77, the valuation of ACI can be described as reasonable.
90.24% of the companies in the same industry are more expensive than ACI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ACI to the average of the S&P500 Index (20.99), we can say ACI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
ACI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACI is cheaper than 87.80% of the companies in the same industry.
70.73% of the companies in the same industry are more expensive than ACI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.69 | ||
| EV/EBITDA | 5.21 |
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-0.9%
EPS Next 3Y0.71%
5. Dividend
5.1 Amount
ACI has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
ACI's Dividend Yield is rather good when compared to the industry average which is at 2.29. ACI pays more dividend than 87.80% of the companies in the same industry.
ACI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
30.78% of the earnings are spent on dividend by ACI. This is a low number and sustainable payout ratio.
DP30.78%
EPS Next 2Y-0.9%
EPS Next 3Y0.71%
21.72
-0.58 (-2.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.78%
Inst Owner Change5.02%
Ins Owners1.28%
Ins Owner Change1.79%
Market Cap12.51B
Analysts72.8
Price Target23.82 (9.67%)
Short Float %4.46%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP30.78%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.81%
Min EPS beat(2)7.12%
Max EPS beat(2)12.51%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-1.84%
Max EPS beat(4)12.51%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)11
Avg EPS beat(12)10.47%
EPS beat(16)15
Avg EPS beat(16)15.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)4
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.5%
PT rev (1m)-0.91%
PT rev (3m)0.54%
EPS NQ rev (1m)-12.21%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)-3.97%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.77 | ||
| P/S | 0.16 | ||
| P/FCF | 16.69 | ||
| P/OCF | 4.67 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.21 |
EPS(TTM)2.34
EY10.77%
EPS(NY)2.22
Fwd EY10.24%
FCF(TTM)1.3
FCFY5.99%
OCF(TTM)4.66
OCFY21.44%
SpS139.63
BVpS5.88
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 28.31% | ||
| ROCE | 10.29% | ||
| ROIC | 8.93% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 11.13% | ||
| OM | 2.5% | ||
| PM (TTM) | 1.19% | ||
| GM | 27.68% | ||
| FCFM | 0.93% |
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-Score6
Asset Turnover3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 70.07% | ||
| Profit Quality | 78.18% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 3.62 |
F-Score6
WACC8.13%
ROIC/WACC1.1
Cap/Depr(3y)113.2%
Cap/Depr(5y)108.25%
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)-19.03%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-14.81%
EPS Next Y-4.99%
EPS Next 2Y-0.9%
EPS Next 3Y0.71%
EPS Next 5Y0.71%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.51%
Revenue Next Year3.63%
Revenue Next 2Y2.15%
Revenue Next 3Y2.07%
Revenue Next 5Y1.97%
EBIT growth 1Y-13.81%
EBIT growth 3Y-6.06%
EBIT growth 5Y16.07%
EBIT Next Year84.86%
EBIT Next 3Y22.66%
EBIT Next 5Y12.83%
FCF growth 1Y19.29%
FCF growth 3Y-26.75%
FCF growth 5Y11.81%
OCF growth 1Y0.79%
OCF growth 3Y-8.62%
OCF growth 5Y7.08%