ALBERTSONS COS INC - CLASS A (ACI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACI - US0130911037 - Common Stock
16.69 USD
+0.03 (+0.18%)
16.7 USD
+0.01 (+0.06%)
We assign a fundamental rating of 4 out of 10 to ACI. ACI was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of ACI while its profitability can be described as average. 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.
- Each year in the past 5 years ACI had a positive operating cash flow.
1.2 Ratios
- ACI's Return On Assets of 3.21% is in line compared to the rest of the industry. ACI outperforms 44.74% of its industry peers.
- With an excellent Return On Equity value of 34.77%, ACI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- ACI has a better Return On Invested Capital (8.26%) than 63.16% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ACI is significantly below the industry average of 28.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 34.77% | ||
| ROIC | 8.26% |
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
- With a Profit Margin value of 1.06%, ACI perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
- ACI's Profit Margin has improved in the last couple of years.
- ACI has a Operating Margin (2.25%) which is in line with its industry peers.
- ACI's Operating Margin has improved in the last couple of years.
- ACI's Gross Margin of 27.22% is fine compared to the rest of the industry. ACI outperforms 63.16% of its industry peers.
- ACI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.25% | ||
| PM (TTM) | 1.06% | ||
| GM | 27.22% |
OM growth 3Y-9.49%
OM growth 5Y10.37%
PM growth 3Y-12.6%
PM growth 5Y9.81%
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.
- ACI has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ACI has more shares outstanding
- Compared to 1 year ago, ACI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.53 indicates that ACI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ACI (3.53) is comparable to the rest of the industry.
- ACI has a debt to FCF ratio of 17.64. This is a negative value and a sign of low solvency as ACI would need 17.64 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 17.64, ACI is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
- ACI has a Debt/Equity ratio of 3.36. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ACI (3.36) is worse than 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | 17.64 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.08
WACC7.67%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that ACI may have some problems paying its short term obligations.
- The Current ratio of ACI (0.91) is worse than 76.32% of its industry peers.
- ACI has a Quick Ratio of 0.91. 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 Quick ratio (0.20) than 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
- The earnings per share for ACI have decreased strongly by -10.33% 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 2.24% 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)-10.33%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%1.41%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%1.86%
3.2 Future
- ACI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.12% yearly.
- The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y-7.35%
EPS Next 2Y-0.35%
EPS Next 3Y2.38%
EPS Next 5Y-1.12%
Revenue Next Year3.77%
Revenue Next 2Y1.58%
Revenue Next 3Y1.67%
Revenue Next 5Y1.93%
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
- The Price/Earnings ratio is 7.69, which indicates a rather cheap 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 92.11% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ACI to the average of the S&P500 Index (28.60), we can say ACI is valued rather cheaply.
- ACI is valuated cheaply with a Price/Forward Earnings ratio of 7.18.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ACI indicates a rather cheap valuation: ACI is cheaper than 94.74% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. ACI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACI is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACI indicates a somewhat cheap valuation: ACI is cheaper than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.95 | ||
| EV/EBITDA | 4.85 |
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-0.35%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
- ACI has a Yearly Dividend Yield of 3.49%.
- Compared to an average industry Dividend Yield of 0.73, ACI pays a better dividend. On top of this ACI pays more dividend than 97.37% of the companies listed in the same industry.
- ACI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
- ACI has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of ACI decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- ACI pays out 38.31% of its income as dividend. This is a sustainable payout ratio.
DP38.31%
EPS Next 2Y-0.35%
EPS Next 3Y2.38%
ALBERTSONS COS INC - CLASS A / ACI FAQ
What is the ChartMill fundamental rating of ALBERTSONS COS INC - CLASS A (ACI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ACI.
What is the valuation status of ALBERTSONS COS INC - CLASS A (ACI) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALBERTSONS COS INC - CLASS A (ACI). This can be considered as Undervalued.
How profitable is ALBERTSONS COS INC - CLASS A (ACI) stock?
ALBERTSONS COS INC - CLASS A (ACI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ALBERTSONS COS INC - CLASS A (ACI) stock?
The Price/Earnings (PE) ratio for ALBERTSONS COS INC - CLASS A (ACI) is 7.69 and the Price/Book (PB) ratio is 3.66.
What is the financial health of ALBERTSONS COS INC - CLASS A (ACI) stock?
The financial health rating of ALBERTSONS COS INC - CLASS A (ACI) is 2 / 10.