ALBERTSONS COS INC - CLASS A (ACI) Stock Fundamental Analysis
NYSE:ACI - New York Stock Exchange, Inc. - US0130911037 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ACI. ACI was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. While ACI belongs to the best of the industry regarding profitability, there are concerns on its financial health. ACI is valued quite cheap, but it does not seem to be growing.
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
ACI has a Return On Assets (3.58%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 28.31%, ACI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
ACI has a Return On Invested Capital of 8.93%. This is in the better half of the industry: ACI outperforms 73.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACI is above the industry average of 8.02%.
| 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's Profit Margin of 1.19% is in line compared to the rest of the industry. ACI outperforms 53.66% of its industry peers.
In the last couple of years the Profit Margin of ACI has grown nicely.
ACI's Operating Margin of 2.50% is in line compared to the rest of the industry. ACI outperforms 56.10% of its industry peers.
ACI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.68%, ACI is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
ACI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACI is destroying value.
ACI has about the same amout of shares outstanding than it did 1 year ago.
ACI has more shares outstanding than it did 5 years ago.
ACI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.62 indicates that ACI is not in any danger for bankruptcy at the moment.
ACI has a Altman-Z score (3.62) which is in line with its industry peers.
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.
The Debt to FCF ratio of ACI (10.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.29 is on the high side and indicates that ACI has dependencies on debt financing.
ACI's Debt to Equity ratio of 2.29 is on the low side compared to the rest of the industry. ACI is outperformed by 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.76
WACC11.78%
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 has a worse Current ratio (0.90) than 78.05% of its industry peers.
ACI has a Quick 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.
Looking at the Quick ratio, with a value of 0.22, ACI is doing worse than 85.37% of the companies in the same industry.
| 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.
ACI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.36% yearly.
ACI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
ACI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.18% yearly.
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
ACI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.71% yearly.
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-8.92%
EPS Next 2Y-2.17%
EPS Next 3Y0.45%
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.
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
ACI is valuated reasonably with a Price/Earnings ratio of 9.44.
Based on the Price/Earnings ratio, ACI is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.82. ACI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.37, the valuation of ACI can be described as reasonable.
Based on the Price/Forward Earnings ratio, ACI is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ACI to the average of the S&P500 Index (21.76), we can say ACI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACI is valued cheaper than 85.37% 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 | 16.98 | ||
| EV/EBITDA | 5.23 |
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-2.17%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
ACI has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.31, ACI pays a better dividend. On top of this ACI pays more dividend than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ACI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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-2.17%
EPS Next 3Y0.45%
22.1
+0.27 (+1.24%)
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 Change8.33%
Ins Owners1.28%
Ins Owner Change1.69%
Market Cap12.72B
Analysts72.8
Price Target23.82 (7.78%)
Short Float %4.46%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)-3.64%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)-4.13%
EPS NY rev (3m)-7.81%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.16 | ||
| P/FCF | 16.98 | ||
| P/OCF | 4.75 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.34
EY10.59%
EPS(NY)2.13
Fwd EY9.64%
FCF(TTM)1.3
FCFY5.89%
OCF(TTM)4.66
OCFY21.07%
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
WACC11.78%
ROIC/WACC0.76
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-8.92%
EPS Next 2Y-2.17%
EPS Next 3Y0.45%
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%