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 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. ACI scores excellent on profitability, but there are concerns on its financial health. ACI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ACI had positive earnings in the past year.
ACI had a positive operating cash flow in the past year.
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 (3.61%) which is comparable to the rest of the industry.
ACI has a better Return On Equity (29.60%) than 90.00% of its industry peers.
ACI has a Return On Invested Capital of 8.98%. This is in the better half of the industry: ACI outperforms 72.50% 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 8.23%.
| 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.
ACI's Profit Margin has improved in the last couple of years.
ACI has a Operating Margin of 2.38%. This is comparable to the rest of the industry: ACI outperforms 52.50% of its industry peers.
ACI's Operating Margin has improved in the last couple of years.
ACI has a better Gross Margin (27.47%) than 62.50% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACI 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.
Compared to 1 year ago, ACI has an improved debt to assets ratio.
2.2 Solvency
ACI has an Altman-Z score of 3.60. This indicates that ACI is financially healthy and has little risk of bankruptcy at the moment.
ACI has a worse Altman-Z score (3.60) than 60.00% of its industry peers.
ACI has a debt to FCF ratio of 15.63. This is a negative value and a sign of low solvency as ACI would need 15.63 years to pay back of 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 60.00% of its industry peers.
A Debt/Equity ratio of 2.17 is on the high side and indicates that ACI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.17, ACI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 15.63 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.24
WACC7.22%
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.
The Current ratio of ACI (0.82) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.18 indicates that ACI may have some problems paying its short term obligations.
ACI has a Quick ratio of 0.18. This is amonst the worse of the industry: ACI underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
ACI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.89%.
Measured over the past years, ACI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.36% on average per year.
ACI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.95%.
The Revenue has been growing slightly by 5.18% on average over the past years.
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 -1.95% on average over the next years.
ACI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y-9.01%
EPS Next 2Y-2.46%
EPS Next 3Y0.7%
EPS Next 5Y-1.95%
Revenue Next Year4%
Revenue Next 2Y2.23%
Revenue Next 3Y2.24%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.66, which indicates a very decent valuation of ACI.
92.50% of the companies in the same industry are more expensive than ACI, based on the Price/Earnings ratio.
ACI is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.68, the valuation of ACI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACI indicates a rather cheap valuation: ACI is cheaper than 92.50% of the companies listed in the same industry.
ACI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.68 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 4 |
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-2.46%
EPS Next 3Y0.7%
5. Dividend
5.1 Amount
ACI has a Yearly Dividend Yield of 3.12%.
ACI's Dividend Yield is rather good when compared to the industry average which is at 2.09. ACI pays more dividend than 92.50% of the companies in the same industry.
ACI's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| 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
ACI pays out 32.62% of its income as dividend. This is a sustainable payout ratio.
DP32.62%
EPS Next 2Y-2.46%
EPS Next 3Y0.7%
NYSE:ACI (8/4/2025, 2:56:07 PM)
19.315
-0.29 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners60.53%
Inst Owner Change0.55%
Ins Owners1.02%
Ins Owner Change1.69%
Market Cap10.81B
Analysts73.6
Price Target24.93 (29.07%)
Short Float %3.63%
Short Ratio2.63
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)1.52%
PT rev (3m)4.94%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)-16.09%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.13 | ||
| P/FCF | 21.57 | ||
| P/OCF | 4.37 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4 |
EPS(TTM)2.23
EY11.55%
EPS(NY)2.23
Fwd EY11.53%
FCF(TTM)0.9
FCFY4.64%
OCF(TTM)4.42
OCFY22.88%
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
WACC7.22%
ROIC/WACC1.24
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-9.01%
EPS Next 2Y-2.46%
EPS Next 3Y0.7%
EPS Next 5Y-1.95%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.54%
Revenue Next Year4%
Revenue Next 2Y2.23%
Revenue Next 3Y2.24%
Revenue Next 5Y2.04%
EBIT growth 1Y-11.97%
EBIT growth 3Y-6.06%
EBIT growth 5Y16.07%
EBIT Next Year78.32%
EBIT Next 3Y22.66%
EBIT Next 5Y11.92%
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%