Albertsons Companies, Inc. (ACI) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Albertsons Companies's EV/EBITDA of 36.0 is above its 5-year median of 5.3.

P/B above the industry

Albertsons Companies's price-to-book of 4.27 is above the Consumer staples median of 2.93.

Trading below fair value

The share price of $13.01 is below our fair value estimate of $23.15.

Margin of safety over 20%

The price is 43.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -43.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -105% over the last twelve months, against a 5-year average of -23.9% a year.

Growing slower than the industry

Revenue grew 2.3% over the last twelve months; the Consumer staples median is 3.8%.

Guidance lowered

Albertsons Companies lowered its fiscal 2026 Adjusted net income per Class A common share outlook on Jul 23, 2026.

Gross margin slipping

Gross margin was 27.0% over the last twelve months, against 27.3% a year earlier.

Return on equity under 15%

Return on equity was -2.3% over the last twelve months and averaged 47.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Albertsons Companies's return on equity of -2.3% is below the Consumer staples median of 6.3%.

Earnings shrank over 5 years

Net income shrank 23.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -0.1% over the last twelve months, against a 5-year average of 1.5%.

Net margin below the industry

Albertsons Companies's net margin of -0.1% is below the Consumer staples median of 0.7%.

High debt

Debt is 651% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 628% five years ago to 651%.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.82 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.25; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Albertsons Companies paid dividends worth 3.8% of the share price over the last twelve months.

Yield below Treasuries

The 3.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Albertsons Companies yields 3.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.