Scenario (current figures as of 2025-11-11):
- Yearly evenue Growth Rate stats at least the current 1.79% on average.
- ACI is able to increase Profit Margin from currently anemic 1.20% to 1.50% (industry average is 3.02%) through management of non-performing locations, automation, on-line and "digital" efforts.
- Risk adjustment factor bumped from current 9.38% to 10% because of adverse effect of Tariffs, high inflation, and this grocer might have to be compensate with lower Margins to keep prices on the shelves competitives.
Still , the stock shows to be modestly undervalued... and if any of the above factors improve over the course of 5 years, there are gains to be had in my opinion.
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Disclaimer
The user Kafka has a position in NYSE:ACI. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
