ALBERTSONS COS INC - CLASS A (ACI) Stock Fundamental Analysis
NYSE:ACI - New York Stock Exchange, Inc. - US0130911037 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ACI. ACI was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. While ACI belongs to the best of the industry regarding profitability, there are concerns on its financial health. ACI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ACI had positive earnings in the past year.
ACI had a positive operating cash flow in the past year.
ACI had positive earnings in each of the past 5 years.
ACI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACI (3.58%) is comparable to the rest of the industry.
ACI has a Return On Equity of 28.31%. This is amongst the best in the industry. ACI outperforms 82.50% of its industry peers.
The Return On Invested Capital of ACI (8.93%) is better than 72.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACI is above the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 28.31% | ||
| ROIC | 8.93% |
ROA(3y)4.38%
ROA(5y)4.18%
ROE(3y)49.5%
ROE(5y)41.49%
ROIC(3y)10.33%
ROIC(5y)9.71%
1.3 Margins
ACI's Profit Margin of 1.19% is in line compared to the rest of the industry. ACI outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of ACI has grown nicely.
ACI has a Operating Margin of 2.50%. This is comparable to the rest of the industry: ACI outperforms 55.00% of its industry peers.
In the last couple of years the Operating Margin of ACI has grown nicely.
Looking at the Gross Margin, with a value of 27.68%, ACI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ACI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.5% | ||
| PM (TTM) | 1.19% | ||
| GM | 27.68% |
OM growth 3Y-9.5%
OM growth 5Y10.36%
PM growth 3Y-12.6%
PM growth 5Y9.83%
GM growth 3Y-1.34%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACI is still creating some value.
Compared to 1 year ago, ACI has about the same amount of shares outstanding.
Compared to 5 years ago, ACI has more shares outstanding
Compared to 1 year ago, ACI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.62 indicates that ACI is not in any danger for bankruptcy at the moment.
ACI's Altman-Z score of 3.62 is on the low side compared to the rest of the industry. ACI is outperformed by 60.00% of its industry peers.
The Debt to FCF ratio of ACI is 10.44, which is on the high side as it means it would take ACI, 10.44 years of fcf income to pay off all of its debts.
ACI's Debt to FCF ratio of 10.44 is in line compared to the rest of the industry. ACI outperforms 45.00% of its industry peers.
ACI has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
ACI's Debt to Equity ratio of 2.29 is on the low side compared to the rest of the industry. ACI is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.17
WACC7.61%
2.3 Liquidity
ACI has a Current Ratio of 0.90. This is a bad value and indicates that ACI is not financially healthy enough and could expect problems in meeting its short term obligations.
ACI has a Current ratio of 0.90. This is in the lower half of the industry: ACI underperforms 77.50% of its industry peers.
A Quick Ratio of 0.22 indicates that ACI may have some problems paying its short term obligations.
With a Quick ratio value of 0.22, ACI is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The earnings per share for ACI have decreased strongly by -19.03% in the last year.
ACI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.36% yearly.
Looking at the last year, ACI shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
Measured over the past years, ACI shows a small growth in Revenue. The Revenue has been growing by 5.18% on average per year.
EPS 1Y (TTM)-19.03%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-14.81%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to decrease by -1.95% on average over the next years.
Based on estimates for the next years, ACI will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-9.02%
EPS Next 2Y-2.23%
EPS Next 3Y0.92%
EPS Next 5Y-1.95%
Revenue Next Year3.52%
Revenue Next 2Y2.12%
Revenue Next 3Y2.24%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.37, which indicates a very decent valuation of ACI.
Based on the Price/Earnings ratio, ACI is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
ACI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 10.30, the valuation of ACI can be described as very reasonable.
ACI's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACI is cheaper than 92.50% of the companies in the same industry.
ACI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACI indicates a rather cheap valuation: ACI is cheaper than 87.50% of the companies listed in the same industry.
ACI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACI is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
The decent profitability rating of ACI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.23%
EPS Next 3Y0.92%
5. Dividend
5.1 Amount
ACI has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
ACI's Dividend Yield is rather good when compared to the industry average which is at 2.08. ACI pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ACI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
ACI has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ACI decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
30.78% of the earnings are spent on dividend by ACI. This is a low number and sustainable payout ratio.
DP30.78%
EPS Next 2Y-2.23%
EPS Next 3Y0.92%
21.93
-0.06 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners60.53%
Inst Owner Change8.32%
Ins Owners1.02%
Ins Owner Change1.69%
Market Cap12.63B
Analysts73.6
Price Target24.55 (11.95%)
Short Float %5.14%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP30.78%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.81%
Min EPS beat(2)7.12%
Max EPS beat(2)12.51%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-1.84%
Max EPS beat(4)12.51%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)11
Avg EPS beat(12)10.47%
EPS beat(16)15
Avg EPS beat(16)15.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)4
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.5%
PT rev (1m)3.06%
PT rev (3m)2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.83%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-8.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.16 | ||
| P/FCF | 16.85 | ||
| P/OCF | 4.71 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.25 |
EPS(TTM)2.34
EY10.67%
EPS(NY)2.13
Fwd EY9.71%
FCF(TTM)1.3
FCFY5.94%
OCF(TTM)4.66
OCFY21.23%
SpS139.63
BVpS5.88
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 28.31% | ||
| ROCE | 10.29% | ||
| ROIC | 8.93% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 11.13% | ||
| OM | 2.5% | ||
| PM (TTM) | 1.19% | ||
| GM | 27.68% | ||
| FCFM | 0.93% |
ROA(3y)4.38%
ROA(5y)4.18%
ROE(3y)49.5%
ROE(5y)41.49%
ROIC(3y)10.33%
ROIC(5y)9.71%
ROICexc(3y)10.53%
ROICexc(5y)10.33%
ROICexgc(3y)13.14%
ROICexgc(5y)12.88%
ROCE(3y)11.9%
ROCE(5y)11.19%
ROICexcg growth 3Y-10.83%
ROICexcg growth 5Y15.23%
ROICexc growth 3Y-9.97%
ROICexc growth 5Y15.08%
OM growth 3Y-9.5%
OM growth 5Y10.36%
PM growth 3Y-12.6%
PM growth 5Y9.83%
GM growth 3Y-1.34%
GM growth 5Y-0.35%
F-Score6
Asset Turnover3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 10.44 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 70.07% | ||
| Profit Quality | 78.18% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 3.62 |
F-Score6
WACC7.61%
ROIC/WACC1.17
Cap/Depr(3y)113.2%
Cap/Depr(5y)108.25%
Cap/Sales(3y)2.58%
Cap/Sales(5y)2.46%
Profit Quality(3y)61.51%
Profit Quality(5y)120.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.03%
EPS 3Y-8.65%
EPS 5Y-0.36%
EPS Q2Q%-14.81%
EPS Next Y-9.02%
EPS Next 2Y-2.23%
EPS Next 3Y0.92%
EPS Next 5Y-1.95%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.8%
Revenue growth 5Y5.18%
Sales Q2Q%2.51%
Revenue Next Year3.52%
Revenue Next 2Y2.12%
Revenue Next 3Y2.24%
Revenue Next 5Y2.04%
EBIT growth 1Y-13.81%
EBIT growth 3Y-6.06%
EBIT growth 5Y16.07%
EBIT Next Year78.32%
EBIT Next 3Y22.66%
EBIT Next 5Y11.92%
FCF growth 1Y19.29%
FCF growth 3Y-26.75%
FCF growth 5Y11.81%
OCF growth 1Y0.79%
OCF growth 3Y-8.62%
OCF growth 5Y7.08%