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Market Cap

US$9.0b

Last Updated

2021/05/06 23:48 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Albertsons Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-0.1%

ACI

1.0%

US Consumer Retailing

-1.7%

US Market


1 Year Return

n/a

ACI

22.5%

US Consumer Retailing

51.8%

US Market

Return vs Industry: Insufficient data to determine how ACI performed against the US Consumer Retailing industry.

Return vs Market: Insufficient data to determine how ACI performed against the US Market.


Shareholder returns

ACIIndustryMarket
7 Day-0.1%1.0%-1.7%
30 Day3.4%1.3%1.5%
90 Day13.9%2.0%3.1%
1 Yearn/a25.2%22.5%54.4%51.8%
3 Yearn/a68.0%58.2%63.0%52.8%
5 Yearn/a96.9%76.5%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is Albertsons Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Albertsons Companies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACI ($19.29) is trading below our estimate of fair value ($108.83)

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


Price To Earnings Ratio

PE vs Industry: ACI is good value based on its PE Ratio (12.6x) compared to the US Consumer Retailing industry average (14.7x).

PE vs Market: ACI is good value based on its PE Ratio (12.6x) compared to the US market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: ACI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ACI is overvalued based on its PB Ratio (6.8x) compared to the US Consumer Retailing industry average (3x).


Future Growth

How is Albertsons Companies forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACI's forecast earnings growth (12.8% per year) is above the savings rate (2%).

Earnings vs Market: ACI's earnings (12.8% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: ACI's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: ACI's revenue is forecast to decline over the next 3 years (-0.7% 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 (35.7%)


Past Performance

How has Albertsons Companies performed over the past 5 years?

68.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACI has a large one-off loss of $676.5M impacting its February 27 2021 financial results.

Growing Profit Margin: ACI's current net profit margins (1.1%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: ACI has become profitable over the past 5 years, growing earnings by 68% per year.

Accelerating Growth: ACI's earnings growth over the past year (63.6%) is below its 5-year average (68% per year).

Earnings vs Industry: ACI earnings growth over the past year (63.6%) exceeded the Consumer Retailing industry 59.8%.


Return on Equity

High ROE: Whilst ACI's Return on Equity (29.08%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Albertsons Companies's financial position?


Financial Position Analysis

Short Term Liabilities: ACI's short term assets ($7.0B) exceed its short term liabilities ($6.8B).

Long Term Liabilities: ACI's short term assets ($7.0B) do not cover its long term liabilities ($16.8B).


Debt to Equity History and Analysis

Debt Level: ACI's debt to equity ratio (264.8%) is considered high.

Reducing Debt: ACI's debt to equity ratio has reduced from 704.5% to 264.8% over the past 5 years.

Debt Coverage: ACI's debt is well covered by operating cash flow (50.4%).

Interest Coverage: ACI's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACI's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ACI's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ACI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ACI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.1%), ACI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACI's dividends in 3 years are forecast to be thoroughly covered by earnings (6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Vivek Sankaran (57 yo)

2.08yrs

Tenure

US$28,944,892

Compensation

Mr. Vivek Sankaran has been the President, Chief Executive Officer and Director of Albertsons Companies, Inc. since April 25, 2019. Mr. Sankaran served as Chief Executive Officer of PepsiCo Foods North Am...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD28.94M) is above average for companies of similar size in the US market ($USD6.47M).

Compensation vs Earnings: Insufficient data to compare Vivek's compensation with company performance.


Leadership Team

Experienced Management: ACI's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ACI's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: ACI only recently listed within the past 12 months.


Top Shareholders

Company Information

Albertsons Companies, Inc.'s company bio, 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
  • Market Cap: US$8.999b
  • Shares outstanding: 466.51m
  • Website: https://www.albertsonscompanies.com

Number of Employees


Location

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

Listings


Biography

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 mercha...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 23:48
End of Day Share Price2021/05/06 00:00
Earnings2021/02/27
Annual Earnings2021/02/27


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.