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 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ACI was profitable.
ACI had a positive operating cash flow in the past year.
Each year in the past 5 years ACI has been profitable.
ACI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACI's Return On Assets of 3.58% is in line compared to the rest of the industry. ACI outperforms 55.00% of its industry peers.
The Return On Equity of ACI (28.31%) is better than 82.50% of its industry peers.
With a decent Return On Invested Capital value of 8.93%, ACI is doing good in the industry, outperforming 72.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACI is above the industry average of 8.23%.
| 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 of 1.19%. This is comparable to the rest of the industry: ACI outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of ACI has grown nicely.
With a Operating Margin value of 2.50%, ACI perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
ACI's Operating Margin has improved in the last couple of years.
ACI's Gross Margin of 27.68% is fine compared to the rest of the industry. ACI outperforms 62.50% 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.
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 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.
ACI has a Debt to FCF ratio of 10.44. This is comparable to the rest of the industry: ACI outperforms 45.00% of its industry peers.
ACI has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
ACI has a Debt to Equity ratio of 2.29. This is amonst the worse of the industry: ACI underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.16
WACC7.69%
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.
The Current ratio of ACI (0.90) is worse than 77.50% of its industry peers.
A Quick Ratio of 0.22 indicates that ACI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.22, ACI is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
ACI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.03%.
ACI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.36% yearly.
Looking at the last year, ACI shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
Measured over the past years, ACI shows a small growth in Revenue. The Revenue has been growing by 5.18% on average per year.
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 decrease by -1.95% on average over the next years.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y-9.01%
EPS Next 2Y-2.46%
EPS Next 3Y0.7%
EPS Next 5Y-1.95%
Revenue Next Year3.54%
Revenue Next 2Y2.09%
Revenue Next 3Y2.26%
Revenue Next 5Y2.04%
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 decreasing.
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
A Price/Earnings ratio of 9.47 indicates a reasonable valuation of ACI.
Compared to the rest of the industry, the Price/Earnings ratio of ACI indicates a rather cheap valuation: ACI is cheaper than 92.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACI to the average of the S&P500 Index (27.41), we can say ACI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.40, the valuation of ACI can be described as reasonable.
ACI's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACI is cheaper than 92.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACI to the average of the S&P500 Index (35.19), we can say ACI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
ACI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACI is cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACI is valued a bit cheaper than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.67 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
ACI has a very decent profitability rating, which 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 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 2.03. ACI pays more dividend than 87.50% of the companies in the same industry.
ACI's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| 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.
The dividend of ACI decreased 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-2.46%
EPS Next 3Y0.7%
22.15
-0.13 (-0.58%)
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 Change-0.02%
Ins Owners1.02%
Ins Owner Change1.69%
Market Cap12.49B
Analysts73.6
Price Target24.55 (10.84%)
Short Float %5.14%
Short Ratio4.18
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%
PT rev (3m)2.12%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-8.03%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 10.4 | ||
| P/S | 0.16 | ||
| P/FCF | 16.67 | ||
| P/OCF | 4.66 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.21 |
EPS(TTM)2.34
EY10.56%
EPS(NY)2.13
Fwd EY9.61%
FCF(TTM)1.33
FCFY6%
OCF(TTM)4.75
OCFY21.46%
SpS142.54
BVpS6
TBVpS-0.24
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
WACC7.69%
ROIC/WACC1.16
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-9.01%
EPS Next 2Y-2.46%
EPS Next 3Y0.7%
EPS Next 5Y-1.95%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.51%
Revenue Next Year3.54%
Revenue Next 2Y2.09%
Revenue Next 3Y2.26%
Revenue Next 5Y2.04%
EBIT growth 1Y-13.81%
EBIT growth 3Y-6.06%
EBIT growth 5Y16.07%
EBIT Next Year78.32%
EBIT Next 3Y22.66%
EBIT Next 5Y11.92%
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%