Albertsons Companies, Inc. Fundamental Analysis (NYSE: ACI)
Albertsons Companies, Inc. (NYSE: ACI) shows weak financial fundamentals with a PE ratio of 150.12, profit margin of 0.08%, and ROE of 2.91%. The company generates $79.3B in annual revenue with moderate year-over-year growth of 3.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACI's fundamental strength across five key dimensions:
Efficiency Score
WeakACI struggles to generate sufficient returns from assets.
Valuation Score
ModerateACI shows balanced valuation metrics.
Growth Score
WeakACI faces weak or negative growth trends.
Financial Health Score
WeakACI carries high financial risk with limited liquidity.
Profitability Score
ModerateACI maintains healthy but balanced margins.
Key Financial Metrics
Is ACI Expensive or Cheap?
P/E Ratio
ACI trades at 150.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ACI's PEG of -1.58 indicates potential undervaluation.
Price to Book
The market values Albertsons Companies, Inc. at 3.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.18 times EBITDA. This is generally considered low.
How Well Does ACI Make Money?
Net Profit Margin
For every $100 in sales, Albertsons Companies, Inc. keeps $0.08 as profit after all expenses.
Operating Margin
Core operations generate 0.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.91 in profit for every $100 of shareholder equity.
ROA
Albertsons Companies, Inc. generates $0.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Albertsons Companies, Inc. generates limited operating cash flow of $2.36B, signaling weaker underlying cash strength.
Free Cash Flow
Albertsons Companies, Inc. generates weak or negative free cash flow of $668.14M, restricting financial flexibility.
FCF Per Share
Each share generates $1.38 in free cash annually.
FCF Yield
ACI converts 12.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
150.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ACI Stacks Against Its Sector Peers
| Metric | ACI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 150.12 | 20.64 | Worse (Expensive) |
| ROE | 2.91% | 720.00% | Weak |
| Net Margin | 0.08% | -2883.00% (disorted) | Weak |
| Debt/Equity | 9.74 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.84 | 2.28 | Weak Liquidity |
| ROA | 0.24% | 4053.00% | Weak |
ACI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Albertsons Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.52%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
-76.54%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-44.35%
Industry Style: Defensive, Dividend, Low Volatility
Declining