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 has a medium profitability rating, but doesn't score so well on its financial health evaluation. ACI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ACI was profitable.
ACI had a positive operating cash flow in the past year.
In the past 5 years ACI has always been profitable.
ACI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACI (3.58%) is comparable to the rest of the industry.
ACI's Return On Equity of 28.31% is amongst the best of the industry. ACI outperforms 85.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.93%, ACI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACI is above the industry average of 7.93%.
| 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
Looking at the Profit Margin, with a value of 1.19%, ACI is in line with its industry, outperforming 50.00% of the companies in the same industry.
ACI's Profit Margin has improved in the last couple of years.
ACI has a Operating Margin (2.50%) which 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 comparable to the rest of the 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
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.
The number of shares outstanding for ACI has been increased compared to 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 3.62. This indicates that ACI is financially healthy and has little risk of 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.
Looking at the Debt to FCF ratio, with a value of 10.44, ACI is in line with its industry, outperforming 42.50% of the companies in the same industry.
ACI has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
ACI has a worse Debt to Equity ratio (2.29) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.17
WACC7.66%
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.
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.
The Quick ratio of ACI (0.22) is worse than 82.50% 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.
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
Based on estimates for the next years, ACI will show a small growth in Earnings Per Share. The EPS will grow by 0.71% on average per year.
ACI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.97% yearly.
EPS Next Y-4.99%
EPS Next 2Y-0.9%
EPS Next 3Y0.71%
EPS Next 5Y0.71%
Revenue Next Year3.76%
Revenue Next 2Y2.16%
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
The Price/Earnings ratio is 9.37, which indicates a very decent valuation of ACI.
Based on the Price/Earnings ratio, ACI is valued cheaper than 92.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. ACI is valued rather cheaply when compared to this.
ACI is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
Based on the Price/Forward Earnings ratio, ACI is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. ACI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACI is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACI is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 5.26 |
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-0.9%
EPS Next 3Y0.71%
5. Dividend
5.1 Amount
ACI has a Yearly Dividend Yield of 2.73%.
Compared to an average industry Dividend Yield of 2.29, ACI pays a better dividend. On top of this ACI pays more dividend than 87.50% of the companies listed in the same industry.
ACI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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-0.9%
EPS Next 3Y0.71%
21.93
-0.08 (-0.36%)
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 Change0.78%
Ins Owners1.28%
Ins Owner Change1.85%
Market Cap12.63B
Analysts72.8
Price Target23.75 (8.3%)
Short Float %3.71%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)-0.31%
PT rev (3m)1.61%
EPS NQ rev (1m)-9.54%
EPS NQ rev (3m)-14.6%
EPS NY rev (1m)-3.97%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.16 | ||
| P/FCF | 16.85 | ||
| P/OCF | 4.71 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.26 |
EPS(TTM)2.34
EY10.67%
EPS(NY)2.22
Fwd EY10.14%
FCF(TTM)1.3
FCFY5.94%
OCF(TTM)4.66
OCFY21.23%
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
WACC7.66%
ROIC/WACC1.17
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 Year3.76%
Revenue Next 2Y2.16%
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%