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ACI

Albertsons Companies NYSE:ACI Stock Report

Last Price

US$28.07

Market Cap

US$15.4b

7D

3.8%

1Y

-6.0%

Updated

12 Aug, 2022

Data

Company Financials +
ACI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends3/6

ACI Stock Overview

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States.

Albertsons Companies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Albertsons Companies
Historical stock prices
Current Share PriceUS$28.07
52 Week HighUS$37.99
52 Week LowUS$25.89
Beta0.45
1 Month Change5.81%
3 Month Change-6.31%
1 Year Change-5.96%
3 Year Changen/a
5 Year Changen/a
Change since IPO81.68%

Recent News & Updates

Aug 08

Albertsons ticks higher on Ahold takeover speculation

Albertsons (NYSE:ACI) rose 2.5% on speculation about a potential Ahold (OTCQX:ADRNY) deal as the supermarket retailer is under a strategic review. Albertsons (ACI) shares ticked higher after Gordon Haskett highlighted that two of Albertson's (ACI) jets were spotted at Ahold's home airport in Bedford, Massachusetts last week, according to jet tracking data. Recall in late June Albertsons (ACI) disclosed that a lock-up agreement with the company's sponsors was extended until September as the supermarket chain continues a strategic review. Developing story ...

Aug 02
Does Albertsons Companies (NYSE:ACI) Deserve A Spot On Your Watchlist?

Does Albertsons Companies (NYSE:ACI) Deserve A Spot On Your Watchlist?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

ACIUS Consumer RetailingUS Market
7D3.8%0.9%1.3%
1Y-6.0%-2.1%-11.7%

Return vs Industry: ACI underperformed the US Consumer Retailing industry which returned -2.1% over the past year.

Return vs Market: ACI exceeded the US Market which returned -11.7% over the past year.

Price Volatility

Is ACI's price volatile compared to industry and market?
ACI volatility
ACI Average Weekly Movement4.8%
Consumer Retailing Industry Average Movement6.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ACI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ACI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1860195,750Vivek Sankaranhttps://www.albertsonscompanies.com

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores.

Albertsons Companies Fundamentals Summary

How do Albertsons Companies's earnings and revenue compare to its market cap?
ACI fundamental statistics
Market CapUS$15.38b
Earnings (TTM)US$1.36b
Revenue (TTM)US$73.93b

11.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACI income statement (TTM)
RevenueUS$73.93b
Cost of RevenueUS$52.45b
Gross ProfitUS$21.48b
Other ExpensesUS$20.12b
EarningsUS$1.36b

Last Reported Earnings

Jun 18, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.55
Gross Margin29.05%
Net Profit Margin1.83%
Debt/Equity Ratio157.0%

How did ACI perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

16%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ACI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACI?

Other financial metrics that can be useful for relative valuation.

ACI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA6.3x
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

How does ACI's PE Ratio compare to its peers?

ACI PE Ratio vs Peers
The above table shows the PE ratio for ACI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.9x
CASY Casey's General Stores
22.8x5.9%US$7.8b
KR Kroger
15.7x4.0%US$33.8b
GO Grocery Outlet Holding
70.8x22.0%US$3.9b
SFM Sprouts Farmers Market
12.5x2.0%US$3.1b
ACI Albertsons Companies
11x2.8%US$14.9b

Price-To-Earnings vs Peers: ACI is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does ACI's PE Ratio compare vs other companies in the US Consumer Retailing Industry?

Price-To-Earnings vs Industry: ACI is good value based on its Price-To-Earnings Ratio (11x) compared to the US Consumer Retailing industry average (18.8x)


Price to Earnings Ratio vs Fair Ratio

What is ACI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: ACI is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).


Share Price vs Fair Value

What is the Fair Price of ACI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACI ($28.07) is trading below our estimate of fair value ($58.42)

Significantly Below Fair Value: ACI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Albertsons Companies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACI's forecast earnings growth (2.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ACI's earnings (2.8% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: ACI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACI's revenue (1.8% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ACI's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACI's Return on Equity is forecast to be high in 3 years time (29%)


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Past Performance

How has Albertsons Companies performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


48.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACI has high quality earnings.

Growing Profit Margin: ACI's current net profit margins (1.8%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: ACI has become profitable over the past 5 years, growing earnings by 48.7% per year.

Accelerating Growth: ACI's earnings growth over the past year (143.8%) exceeds its 5-year average (48.7% per year).

Earnings vs Industry: ACI earnings growth over the past year (143.8%) exceeded the Consumer Retailing industry 16.4%.


Return on Equity

High ROE: Whilst ACI's Return on Equity (35.25%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Albertsons Companies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ACI's short term assets ($8.7B) exceed its short term liabilities ($7.9B).

Long Term Liabilities: ACI's short term assets ($8.7B) do not cover its long term liabilities ($15.6B).


Debt to Equity History and Analysis

Debt Level: ACI's net debt to equity ratio (88.4%) is considered high.

Reducing Debt: ACI's debt to equity ratio has reduced from 958.4% to 157% over the past 5 years.

Debt Coverage: ACI's debt is well covered by operating cash flow (46.6%).

Interest Coverage: ACI's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


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Dividend

What is Albertsons Companies's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ACI's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: ACI's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ACI has been paying a dividend for less than 10 years.

Growing Dividend: ACI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.3%), ACI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.7%), ACI's dividend payments are thoroughly covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Vivek Sankaran (59 yo)

3.33yrs

Tenure

US$8,639,520

Compensation

Mr. Vivek Sankaran has been the Chief Executive Officer and Director of Albertsons Companies, Inc. since April 25, 2019 and served as its President since April 25, 2019 until September 7, 2021. Mr. Sankara...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD8.64M) is below average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Vivek's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ACI's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: ACI's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14%.


Top Shareholders

Company Information

Albertsons Companies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Albertsons Companies, Inc.
  • Ticker: ACI
  • Exchange: NYSE
  • Founded: 1860
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Implied Market Cap: US$15.377b
  • Shares outstanding: 531.90m
  • Website: https://www.albertsonscompanies.com

Number of Employees


Location

  • Albertsons Companies, Inc.
  • 250 Parkcenter Boulevard
  • Boise
  • Idaho
  • 83706
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/18
Annual Earnings2022/02/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.